The complex Sevilla FC sale process It continues to accumulate phases within more or less expected deadlines and moves without pause towards a change of ownership in the institution that will occur sooner rather than later. The valuation of the … huge debt remains the main obstacle for shareholders to overcome. The figures are fluctuating, worrying, and depend on how and who interprets them. The board of directors itself reported a net debt of 88 million euros in December, which in itself paints a difficult scenario for any bidder that decides to land in Nervión and promote investments after the millionaire disbursement for control of the share capital. There has already been a drop in the fund’s valuation americano who was negotiating in the lead for the package of shares when he came face to face with the thorny financial reality of the club, while the strong emergence of Sergio Ramos and its investors also presents nuances. There is talk of a potential offer that would reach 400-450 million, but said proposal would include the restructuring of a debt that, at this time, is under study by this group.
In advance, the bidders know that Sevilla ‘survives’ thanks to financing structured in two parts by Goldman Sachs for a total amount of 178 million euros, an amount to which must be added the participatory loan from LaLiga Impulso (CVC), greater than 100 million, and the Government’s waiver for Covid losses. Nails obligations that guarantee liquidity and sanitation in the present until the completion of the adjustment process sponsored by the club, but to which the new owner will have to deal in the medium and long term. These are amounts that must be returned and, therefore, determine the final assessment and design of many of the offers.
But the major effort and commitment of the new buyer go beyond that millionaire outlay for the shares and obligations accumulated by the company. The families that still control Sevilla and will sell their shares are looking for a way to tie up a better future for the club, even asking in writing a commitment from buyers about what economic solution they will take when they take the reins, whether through a capital increase or through contributions from partners. In short, inject more money after the purchase to get the club out of its current drift.
Here another question arises, the strict and particular rules of LaLiga that investors do not encounter, for example, in other European championships. How much capital can the new owner reinvest in strengthening the team? From LaLiga explican a ABC de Sevilla that the regulations allow the entry of new owners and investment, but under “a strict control model that prioritizes financial sustainability, competitive equality and the prevention of future imbalances.”
The crux of the matter appears. In the case of staff reinforcement, the investment of a new owner is subject to limits clearly defined by the competition’s management. Specifically, the increase in the Sports Squad Cost Limit derived from capital contributions cannot exceed 25 percent of the net amount of the turnover validated for the season. Sevilla FC, in its last shareholders meeting, projected to greatly exceed 150 million euros in income this season, of which 115 million correspond to the turnover and 45 million euros to the capital gains from the sale of players (a transfer or transfers must still be made before June 30 for a value of 10 million to meet this objective).
With these data, and starting from a turnover of 115 million euros, the new investor It could only raise the Sports Squad Cost Limit by 28.75 million (annual salaries and amortizations of these new signings). No tycoon can come and freely say ‘I’m putting up 100 kilos for signings’. In LaLiga, such a circumstance is not possible. The viability of the clubs takes precedence and in Sevilla, of course, there is a lot to cut in this regard.
“Coherent” expenses
On the other hand, LaLiga also establishes a absolute minimum amount of 6 million of euros to carry out this increase derived from capital contributions. Furthermore, the contributions are reduced by the associated expenses and by the outstanding balances with the contributor himself. The organization also clarifies to this medium that during the contribution allocation season and the following three, any outflow of funds in favor of shareholders with a participation equal to or greater than 3 percent generates a automatic limit reductionincreased by 15 percent.
In short, LaLiga emphasizes that “spending on transfers and salaries must be consistent with the club’s economic history” and remembers that economic control is preventive and continuous, not punctual. Regarding the requirements or the supervision When an owner or investor enters a club, beyond economic control, LaLiga has no powers in this regard, since by law this function will correspond to the Higher Sports Council (CSD).
The harsh present
All in all, the contributions made by Sevilla’s hypothetical buyers (around 80 million euros starting) seem necessary so that, at least, the entity begins to breathe some air into its balance sheets and partially propels the sports project. Although they do not solve the structural needs, they would give the sports director some margin to improve the current squad so that Sevilla’s objectives grow in ambition.
It is worth remembering that in the current situation it is very difficult to go out on the market and put together a competitive team. Antonio Cordon finds itself again in this January window with the same serious problems that conditioned its planning in the summer. He has no room to sign the striker that Almeyda has asked for, not even with the departures of Álvaro Fernández and Ramón Martínez. Sevilla needs to make an important sale. In the summer, the club had to sign seven players (Vlachodimos, Azpilicueta, Fabio Cardoso, Suazo, Batista Mendy, Alfon and Alexis Sánchez) with a total investment of 250,000 euros, something unheard of in top European elite football.
