Barcelona are reported to have secured significant loans from two U.S.-based entities to the tune of €140m, bolstering the club’s finances in case extra money for signings is needed.
Barça have already committed to buy Ajax midfielder Frenkie de Jong at the end of the season for a fee that could reach €86m, and these loans seem to act as an insurance policy if the club is unable to cover its anticipated transfer outlays with revenue from player sales.
The news comes from Spanish publication El Pais and it is explained that Pricoa Capital Group has contributed €90m, approximately 10% of the club’s most recent annual revenue, with Barings agreeing to put a further €50m into the Camp Nou coffers.
It’s thought Barça will not have to pay anything back for five years, at which point the club would be expected to return the full amount with interest. According to the report, that would typically be at 1.8%, but the club apparently claims the interest for this deal is at a lower rate.
El Pais notes that Barça have denied the €140m will be used to help fund the ‘Espai Barça’ project that will see the substantial redevelopment of Camp Nou and the surrounding area. The finances for that €600m venture, split into three parts, are already fully planned.
Having a significant sum of cash to hand will aid Barça in terms of transfer business as it means, in theory, they can go out and buy players before having to raise the funds through selling, therefore minimising the risk of being beaten to the punch by competing clubs.
But Barça’s finances have been criticised by expected 2021 presidential candidate Victor Font.
“They don’t generate enough resources and ordinary expenses are higher than revenues, so you have to sell players to avoid generating losses and that’s a time bomb,” he is quoted as saying by Marca.