Barcelona, the renowned Spanish football club, is considering an alternative financing model for the development of their Espai Barça, as reported by Palco23, Spanish news outlet.
Recently, the president of the club, Josep Maria Bartomeu, disclosed that the project cost has gone up to 685 million euros from 600 million euros. The cost includes the redevelopment of Nou Camp stadium of the club.
Now, the recent reports suggest that the members of the club will be called soon to an assembly wherein a bond finance model of up to 600 million euros, would be presented.
The reports also highlighted the creation of investment vehicles that would issue debts among institutional investors. The investors will be able to recover the borrowed funds, together with interests, through the income of the club.
The new model is being explored in order to safeguard the balance sheet of the club from the impacts of the project Espai Barça. The surplus would be redirected to the bond-issuing vehicle with an objective that in the timeline of 20 years, the commitments are liquidated, aligned with standard maturity and linked with such kind of infra projects.
Barcelona’s board of directors’ treasurer, Enrique Tombas, said in a statement to Palco23 that they are planning to build a finance structure that respects two 2014 conditions: there’s no pledge, use, or mortgage of the pre-existing income as well as the structure won’t affect the club’s balance.
In July this year, there were reports of Barcelona hiring an investment group called JB Capital Markets, as a consultancy to assist them in the funding pursuit of the club for its revamp project.