Atletico Madrid get a capital increase of €182 million

After seven years, Atletico Madrid lifted the La Liga title and ended the dominance of their rivals in FC Barcelona and Real Madrid. Along with success on the pitch, there is good news off it. The board of directors at the Spanish club has announced a capital increase of €182 million. 

The main motive behind this increase in capital is to alleviate the effect of COVID-19 that had put a lot of clubs around the world in a financial crisis. In the club’s statement, it is also revealed that this injection of cash is to mitigate the adverse economic effects caused by the pandemic on the club’s income during this season, as well as reduce the level of indebtedness caused by both the investment in the new stadium and the acquisition of players to maintain the level of competitiveness of the first team.

At present, Atletico’s share capital is €36.3 million and the extension means it would five times this figure. As of 30th June 2020, the current shareholders are Miguel Ángel Gil Marin with 46.68% of the shares, and 43.7% is owned indirectly through Holding de Inversiones Atleticas SA.

Out of  €182 million, Gil Marin may cover a little bit over €83 million to maintain the current shareholding amount and the conditions under which the contract is going to be extended are not revealed yet in detail. The second shareholder is an Israeli tycoon named Idan Ofer with 32% of the club’s capital through Quantum Pacific. He came to an agreement with the club in 2017 with an initial 15% and he acquired €50 million after a capital increase. His share went from 15% after taking over to 17% owned by Wanda, the Chinese conglomerate that also has the naming rights to the new stadium of Atletico Madrid. He decided to divest in February 2018 which raised Ofer to that 32%. Enrique Cerezo is the last shareholder with 15.2% of the capital of which 12.6% is through Videomercury Films. 

Atletico’s debt is €590 million in its accounts as of June 30, 2020

-Gross financial Liabilities: €886 million (408 million short-term) and (478 million long-term)

-Transfer debt: €315 million (175 million short term)

-Debt with financial institutions: €218.4 million (75% long term) 

A good part of the debt or financial institutions is €183 million, which is a loan signed with Inbrusa, a financial entity of Mexican magnate Carlos Slim.

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