LOAN SECURED AS PART OF NEW LONG-TERM FINANCIAL STRATEGY

On Tuesday, we signed an agreement that will guarantee financial stability in the short and long term. This will be a crucial part of ensuring the success of our strategic plan. In terms of this funding, the club has been given a favourable investment grade rating, putting us at the same level as the biggest European institutions.

The agreement will see us receive 108 million euros over ten years at a very reasonable rate. It provides short-term security and means that we won't need to rely on capital increases nor financial 'levers' - the sources of capital used to pay the up-front investment costs. Club President, José María del Nido Carrasco, said "this is a coherent and appropriate solution which guarantees financial stability over the coming years."

The club has received the financial backing of international organisations in an agreement structured and led by Goldman Sachs and advised by MA Abogados and Bibium Capital, and DLA Piper on behalf of the investors. It also involved the our financial and legal departments and is supported by LaLiga's experts. 

Covid had a negative impact on club finances, costing €75 million over several years, according to auditing firm EY. This came at a time when investment in the sporting side of the club was at a record high, with the first-team wage bill reaching over €200 million in the 22/23 season, a commitment that allowed for major on-pitch success on the European stage.

Following the financial roadmap signed off this week, the club is now aiming to generate profit in the coming seasons, prioritising an environment of financial stability that will, in turn, strengthen our economic power. "The club is already working with a clear and reliable plan that will promote the creation of a competitive and balanced squad with great potential for growth and financial return, thus returning to a model that has already served us so well."

The plan includes the increase of investment in many different sectors, such as digitalisation, marketing, globalisation and retail, through both physical and online shops. The agreement does not prevent us from making other future financing plans, if required. Although, currently, that does not seem likely despite the Ramón Sánchez-Pizjuán renovation plans.