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Sevilla raise €108m as it puts covid losses in rear view and looks to keep up with Europe’s elite

Sevilla raise €108m as it puts covid losses in rear view and looks to keep up with Europe’s elite

March 13 – LaLiga’s Sevilla have agreed a 10-year refinancing valued at €108 million. This club said the new money will provide long-term stability following a period of post-COVID losses, and empower the execution its strategic plan with “full effectiveness”.

The agreement gives the club short-term liquidity without having to turn to capital increases or monetise through the sale of club businesses or assets (the so-called ‘financial levers’ that FC Barcelona have used to stay solvent).

The money was secured at what has been described as ‘an extraordinarily reasonable cost’, and is in addition to other loans the club already has in place.

“It is a coherent and appropriate solution, which allows us to face the coming years with full guarantees,” said José María del Nido Carrasco, president of Sevilla FC.

The money raise was led by Goldman Sachs and advised by MA Abogados and Bibium Capital, and DLA Piper on behalf of the investors. LaLiga has rubber-stamped the agreement.

Sevilla finances took a hit due to Covid, with estimated losses of €75 million over the affected years. This setback occurred alongside record-high investments in the sporting side, notably with the first-team wage bill surpassing €200 million in the 2022/23 season, facilitating their remarkable Europa League track record, winning the title in that season

In a bid to recover, the club has devised a financial roadmap aimed at achieving profitability in the upcoming seasons. Emphasising the importance of financial stability, the club aims to bolster its economic strength. A spokesperson said: “We are committed to a clear and reliable plan that prioritizes creating a competitive and balanced squad with substantial growth potential and financial returns, aligning with a successful model that has served us well in the past.”

In their official announcement, the club said: “On Tuesday, we signed an agreement that will guarantee financial stability in the short…


Source link : https://www.insideworldfootball.com/2024/03/14/sevilla-raise-e108m-puts-covid-losses-rear-view-looks-keep-europes-elite/

Author : Paul Nicholson

Publish date : 2024-03-14 15:36:03

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