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Who's paying for Gareth Bale?



Marxo

Well-known member
Aug 7, 2011
4,315
Ghent, Belgium
In 2009 while Spain is in financial disarray the 'House Bank' of R. Madrid Caja de Madrid lends R.M. €130 million to finance the transfers of Kaka and Ronaldo.
A year later financial problems force Caja de Madrid and 6 other ailing regional banks to join with Bankia. This new 'big bank' quickly gets into more financial difficulty and in 2011 they try to get the European Central Bank to give them an emergency loan with Ronaldo and Kaka as collateral but are refused. In 2012 even by Spanish standards they suffer enormous losses of €19 billion. As they are now considered 'too big to fail' they receive €18 billion on condition that they close 1,000 branches and axe 6,000 jobs.
Now through some kind of loophole Bankia have come up with a large portion of €100 million for Gareth Bale. Real Madrid according to goal.com have (at the beginning of this year) a €600 million debt of which they have yet to pay a single cent but are scheduled to stump up €75 million mid 2014 (to Bankia).

So who's paying for Gareth Bale's transfer and substantial wages? A club in debt propped up by a bank in debt propped up by European tax payers money.
 


Biscuit

Native Creative
Jul 8, 2003
22,205
Brighton
If you owe the bank £100, it's your problem. If you owe the bank £100,000,000, it's theirs.

I'm not saying it's right, (in fact it isn't) but just because a person is in debt doesn't mean they can't still be lent/or lend money. How many people operate within their overdraft from month to month? I see it as that but on a MASSIVE scale. A debt is fine, as long as it's a manageable one.
 






Seagull over Canaryland

Well-known member
Feb 8, 2011
3,549
Norfolk
Don't know the detail of how Madrid intend to pay but Spurs must be confident of getting their money having shelled out £100m themselves. Can't see Daniel Levy agreeing to anything but a water tight deal with huge penalties if they default.
 




vegster

Sanity Clause
May 5, 2008
27,867
Surely Real have just trousered half the Bale fee by selling Ozil to Arsenal ?
 


MJsGhost

Remembers
NSC Patreon
Jun 26, 2009
4,409
East
Don't know the detail of how Madrid intend to pay but Spurs must be confident of getting their money having shelled out £100m themselves. Can't see Daniel Levy agreeing to anything but a water tight deal with huge penalties if they default.

There was mention of exactly this in one of the broadsheets - they went as far as getting bank guarantees as well as the penalty clauses (+discounts for early payment)
 


Gazwag

5 millionth post poster
Mar 4, 2004
30,093
Bexhill-on-Sea
Don't know the detail of how Madrid intend to pay but Spurs must be confident of getting their money having shelled out £100m themselves. Can't see Daniel Levy agreeing to anything but a water tight deal with huge penalties if they default.

My Spurs supporting mate tells me they haven't received what they are owed for Modric yet
 






Gully Forever

Well-known member
May 9, 2011
1,535
What are you lot on about.. Real Madrid's turnover WITHOUT tv money is over £250 Million PER YEAR.. Bale isn't going to make a massive dent in the bank accounts.
 


withdeanwombat

Well-known member
Feb 17, 2005
8,690
Somersetshire
Real are now 300 euros in profit having sold 26,933 Bale 11 shirts, 31,203 junior outfits, 3 pies and 16,000 litres of San Miguel at the training session.
 








Ninja Elephant

Doctor Elephant
Feb 16, 2009
18,855
Ozil €50million, Higuain to Napoli was worth about €40million. They splash out on Isco and Illarramendi though, so their spending is epic. But within their ability to pay. If they choose to.
 




Thunder Bolt

Ordinary Supporter
I remember Orlandi's interview about playing in Spain. He said wages were lower over there, and sometimes actually got paid.
 




GreersElbow

New member
Jan 5, 2012
4,870
A Northern Outpost
Banks would more than likely be hedging their risk with funding Real Madrid. Real Madrid is such a largely supported club, it's a sensible investment as it's unlikely they're going to fold any time soon. So with the risk there is, they've probably got derivatives or some other instrument elsewhere to ensure any losses are at a minimum and risk is spread out as widely as possible.

EDIT: Wiggo's post is interesting.

The taxpayer's essentially paying.

EDIT 2: As pointed out by someone else, the tax payer's paying for it.
 


e77

Well-known member
May 23, 2004
7,267
Worthing
If Germany have to put up more bail out money, does Bale end up at Bayern Munich?
 




Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,197
The Fatherland
Let's not forget there are some pretty hefty debts at English clubs as well. How much do Man U owe?
 





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