Spanish Football Federation offer €500 million bailout to La Liga and Segunda divisions
The Royal Spanish Football Federation has declared that they will hand a €500 million fund to any La Liga or Segunda division club that needs it. Football in Spain was suspended two weeks ago and the financial implications of that has seen clubs consider pay cuts to help them survive this break.
Both Barcelona and Real Madrid are amongst the Spanish sides that are looking into pay cuts to help them survive with football across Europe suspended. That has seen clubs affected by the lack of matchday and advertising funds that would usually help circumvent and pay wages but in the absence of that, the Royal Spanish Football Federation (RFEF) are looking into other measures.
That has seen the RFEF confirm that there is a €500 million bailout fund available for any club that in the first and second division that needs it. It was later confirmed by Spanish FA president Luis Rubiales and he went on to admit that they’ve spoken to banks with loans available on offer for first and second division clubs that are struggling. He also added that it will be a loan that can be repaid over a four to five year period.
"We are willing to lend a hand to professional football. We want to offer La Liga the possibility to sit down and get the financing for first and second division clubs. We have spoken to several banks and are able to offer a credit line worth €500m to first and second division clubs that are struggling and that can be repaid in the next four, five or six years," Rubiales said, reported ESPN.
The La Liga has already been postponed indefinitely in lieu of the COVID-19 pandemic, spreading across Spain at a deadly rate, although president Javier Tebas has given a May 18th deadline as the last date the La Liga has to resume. However, Tebas has also confirmed that the league has to end by June 30th although Rubiales went onto admit that it’s highly likely that will ever happen.
"We think it's practically impossible to resume competitions at the beginning of May. We have temporary hospitals being put up in Madrid and the military emergency units are out on the streets. We've always stated that the competitions should be completed, whenever that's possible. First is health, then to complete the season,” he added.
