Florentino Perez the President of Real Madrid To Spend €575 million to renovate the Santiago Bernabeu with Paris St-Germain’s Brazil forward Neymar, 26 and France striker Kylian Mbappe, 19, in his top list.
There is already a speculation that such expenditure will pose a problem to the club as the club have €372 million in their possession, “€190 million plus credit of €182 million at a highly competitive variable rate of interest,” according to the treasurer’s report. The money was saved for an operation that never came to pass. For Real Madrid during the summer, it was impossible to lure Neymar or Kylian Mbappé to the Bernabeu. The Brazilian did try everything but Al Khelaifi got tough and Neymar forgot about it.
These figures suggest Real Madrid have the ability to bring in a galactico, or two, in the coming years and the club has turned into more of a seller than a buyer but Florentino Perez is ready to champion Real Madrid To Spend €575 million to Sign Neymar, Mbappé and Renovate Santiago Bernabeu. That could leave the club in a delicate position moving forward when it comes to making big signings.
Danger of the €575 million debt for the ‘new Bernabéu’
It’s true that Real Madrid closed 2016-17 with €190 million in assets, but they also have a lot of payment obligations. Madrid must pay €10.1 million in the next three months and €49.9 million in the next five years. As far as the payment for players, Madrid have to pay €16.8 million at the start of the year.
Madrid tends to base its future projections on the ability to invest money they have. In the 2016-17 season, they had an income of €751 million but the expenses are important too. The amount of income this year is practically the same as the expenses. The income, however, can stagnate while payments to staff rises inevitably. The last figure known in regard to this was €280 million for the first team alone, more than €400 million between the 811 workers of the club.
Earlier, Naijawebsite.com reported that Real Madrid Florentino Perez is not happy with former Coach Zinedine Zidane’s plan to move over to Old Trafford to replace Jose Mourinho.
There are other indicators that Madrid have important payments obligations financial creditors. “The club has pledged the guarantee of the payment of its obligations with different financiers and other creditors, the sponsorship contract until 2018-19”. That is to say that this income has already been allocated as a guarantee of payment and can not be spent elsewhere.
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Real Madrid To Spend €575 million to Sign Neymar, Mbappé and Renovate Santiago Bernabeu
