The board of directors FC Barcelona chose not to wait for the year that some internal and external voices recommended and gave the green light to the financing plan of the Barça spaceone of the most transcendental decisions in the club’s history due to the volume of the operation.
Barça exile for a season Montjuïc Olympic Stadium It can therefore be taken for granted, despite the open doubts in recent days about the economic plan for the remodeling of the stadium in the face of the macroeconomic situation, interest rate rises, and the club’s own day-to-day difficulties.
The board of directors, summoned in a room of the Camp Nou box, heard from the mouth of John Laporta and the club’s economic experts the proposals for the mammoth financing of the remodeling, of 1,500 million euros, a figure approved by the Assembly of Compromising Members in October 2022. The board learned all the details of the financing and voted in favor of throwing forward, just as Joan Laporta wanted, determined not to delay the start of the works any longer. He clearly prevailed over the skeptics.
Communication to investors
The financing, piloted by US investment banks Goldman Sachs y JP Morgan, It will be structured in different tranches, a first presumably of 500 million at an interest rate of 6%. A higher percentage than the previously negotiated 5.2%. The shocks in the banking sector in recent weeks and the reputational problems derived from the Negreira case have made the price of money more expensive. It remains to see the complete structure after a complex negotiation. It is expected that this Friday the club will notify investors of the board’s decision and the agreement can be made official. At this time, it still cannot be considered closed, but almost.
There were managers who considered it advisable to put the project on hold for at least a year. Wait for the financial turbulence of inflation and high rates to calm down, clean up the club’s accounts and reduce the operating deficit of 200 million, but Laporta, despite the risks, has always been in favor of continuing with the project and not delaying one more reform that has been stuck for a decade. Within the board he has had the firm support of Eduard Romeothe economic vice president.
The decision, in the absence of knowing the precise conditions for the repayment of the loans, places the entity in a situation of maximum economic stress. Barring unforeseen events, the only guarantee that investors will receive will be the performance of the new Camp Nou, which is estimated at 347 million a year. Nothing from the Estadi itself nor anything from the ordinary business. Nor is it clear if within the 1500 million there is a game for the Palau.
All the indications point, then, that the works of the ancient Camp Nou will begin in summer and the move of the first team men’s soccer will be extended until November 2024, as long as the Turkish construction company Limak meets the deadlines set to return to the stadium. The promised speed was key to prevailing in the controversial contest, according to what was officially said from the club.
The Negreira case
Barça and the City Council staged the transfer agreement for the Estadi Olímpic days ago and, in fact, the refurbishment work has already begun. For the club it will cost approximately 20 million euros. Barça has already communicated to the Real spanish soccer federation (RFEF) that the first team will play their home games next season in Montjuïcinformation that the federative entity must notify, in turn, to UEFA.
Montjuïc will host the league matches and maybe, just maybe, the European ones. missing to know the decision of the highest European body on whether he sanctions Barça during a course for the Negreira case. He launched an investigation, the announcement of which caused concern among US investors. Laporta had to answer all kinds of questions about it.
For this reason, at the meeting held this Thursday, with Mateu Alemany present, the Negreira case was addressed and the way to face the crisiss. Also how to cut expenses, and in this the reduction of the club’s salary mass is key.
The board of directors also approved the renewal of two bank policies with two different banks for a maximum total of 39.5 million euros. Money that, according to the club, will serve to “strengthen the club’s capacity to carry out ordinary operations.” That is, to survive on a day-to-day basis.
