Breaking News: FC Barcelona Secures Key Refinancing Deal for New Stadium
Friday, June 30, 2023 – 10:30 AM UTC+2
Initial Financing andшем Recent Developments
Debt Structure and Interest Rates
The initial financing, carried out through a securitization fund and signed with US funds and insurers, divided the debt into three segments: €615 million Payable within five years, €500.2 million due in ten years, and €362.8 million to be paid between ten and 25 years. However, the then-economic vice president, Eduard Romeu, highlighted that the first two segments should be refinanced to secure more favorable economic conditions. Initially, contracts were signed when interest rates were around 3%, but with the European Central Bank reducing rates by 2% at the beginning of June, the club sees an opportunity to save costs.
Refinancing Operation and Impact
FC Barcelona successfully refinanced €424 million of debt in June 2023. The initial target was to auction around €200 million, but due to high investor interest, the club settled for €424 million with a 5.19% interest rate, significantly lower than the average 6.82% of recent bond emissions. The operation saw an oversubscription that was double the amount placed on the market, indicating strong investor confidence.
The club has now shuffled its debt to a total of €786.8 million, due in 2028, and retains €500 million maturing by 2032. FC Barcelona aims to convert these bonds into a newer long-term refinancing structure set to 2050, ensuring an annual payment schedule and thus managing its liquidity efficiently.
Income and Projected Revenue
FC Barcelona plans to reduce its financial burden by leveraging the revenue generated from the new stadium. Legends, an advisory firm, estimated that the stadium’s full operational income could reach €346 million, excluding the initial €100 million earmarked for the club. Revenue streams include €50.2 million from subscribers, €73.8 million from ticket sales, €79.7 million from museum and tour admissions, €18.8 million in additional income, €76.5 million from VIP boxes, and €47.2 million from sponsors.
Implications and Future Plans
The refinancing operation not only provides debt relief but also facilitates FC Barcelona’s compliance with financial fair play rules, crucial for future player acquisitions. The rating agency Kbra maintained a BBB rating for the club’s emission, despite improvements in the debt structure and cost reductions from the bond issues.
The new stadium is pivotal for FC Barcelona’s financial health, providing revenues that will ensure long-term sustainability. As the club progresses with stadium completion and profitable operations, it will continue to refine its financial strategy to improve its competitiveness both on and off the field.
