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On Tuesday, Sevilla FC signed an agreement that will guarantee financial stability in the short and long term. This will be a crucial part of ensuring the success of the clubs strategic plan. In terms of this funding, the club has been given a favourable investment grade rating, putting it at the same level as the biggest European institutions.
The agreement will see the clubs receive 108 million Euros over ten years, at a very reasonable rate. It provides short-term security and means that it won’t need to rely on capital increases nor financial ‘levers’ – the sources of capital used to pay the up-front investment costs.
Sevilla FC president José María del Nido Carrasco said “this is a coherent and appropriate solution which guarantees financial stability over the coming years.”
The club has received the financial backing of international organisations in an agreement structured and led by Goldman Sachs and advised by MA Abogados and Bibium Capital, and DLA Piper on behalf of the investors. It also involved the the clubs financial and legal departments and is supported by LaLiga’s experts.
Covid had a negative impact on club finances, costing €75 million over several years, according to auditing firm EY. This came at a time when investment in the sporting side of the club was at a record high, with the first-team wage bill reaching over €200 million in the 2022/23 season, a commitment that allowed for major on-pitch success on the European stage.
Following the financial roadmap signed off this week, the club is now aiming to generate profit in the coming seasons, prioritising an environment of financial stability that will, in turn, strengthen its economic power. “The club is already working with a clear and reliable plan that will promote the creation of a competitive and balanced squad with great potential for growth and financial return, thus returning to a model that has already served us so well.”
The plan includes the increase of investment in many different sectors, such as digitalisation, marketing, globalisation and retail, through both physical and online shops. The agreement does not prevent the clubs from making other future financing plans, if required. Although, currently, that does not seem likely despite the Ramón Sánchez-Pizjuán renovation plans.
