Football clubs taking out large financial loans is no longer the major news story it had became previously. It’s now an almost everyday occurrence within the ‘new world’ of football finance that clubs will seek help from the financial sector. For many sides it’s a necessity but the loan which Erick Thohir has secured for Inter breaks the mould. ‘Finance Asia.com’ tells us more….
“The club loan, used to clear more than €180 million of outstanding debt was secured using Inter Milan’s underlying assets such as media rights and sponsorship contracts (a source familiar with the matter said). This being the first loan involving a European sports team backed by media rights (The source added that this type of structure is popularly used by sports organisations in the U.S.”
The article goes on to discuss the implications on the sporting side of the business (there aren’t any). Because of the way that the loan has been structured using the most reliable parts of the revenue base there won’t be any hindrance in the day-to day running of the football club. Forbes valued the club as the 14th most valuable in football earlier this year, Erick Thohir and his team will be looking to make strides forward to improve upon that valuation.
Source: FinanceAsia.com
