Who's paying for Gareth Bale?

[hitony]

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

Because he supports Spurs, does he have access to all here accounts and personal financial information?

 

[gordonchas]

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.

Bankia is a highly troubled bank, nevertheless it is still a going concern. How on earth do you expect it to become profitable again if it doesn't trade? If it has indeed lent Real Madrid a large sum of money, this is extremely good business, as Real Madrid is one of the safest institutions in the whole of Spain, with its 500m a year revenue, large annual surplus and 90,000 members.

I'm only guessing that there could be an implication in the OP's post that Real Madrid somehow finance their transfers and trading operations with loans which they don't repay? Which would be of course utter nonsense so I'm sure that wasn't even hinted at.

As for Real Madrid's debt, some facts would be helpful. When compared like-for-like their debt is considerably less than Manchester United's and practically the same as Arsenal's overall indebtedness, and their cash flow/debt ratio is twice as good as both Manchester United and Arsenal.

If we want to talk about bank bailouts then we would also have to consider whether any loans or overdrafts are held by English clubs, for example, banking with RBS or HBOS, who together received £37 billion of state assistance, not to mention Northern Rock who had to be nationalised at the time they were sponsoring Newcastle United.

As for Modric, I thought everyone knew most big transfers are paid in instalments. Obviously not.

Still, the black legend of Real Madrid continues.

 

[Bold Seagull]

Didn't they sell their training ground back to the government for something like 20 times what it was actually worth!?

The government also underwrites some of it's dept.

http://www.independent.co.uk/sport/football/european/exclusive-real-madrid-under-investigation-amid-allegations-of-illegal-state-aid-8557550.html

 

[beorhthelm]

Because he supports Spurs, does he have access to all here accounts and personal financial information?

tbf, it was reported earlier in the summer as one of the obstacles to the deal, Levi bascially saying you havent even paid us for the last one yet.

 

[gordonchas]

Didn't they sell their training ground back to the government for something like 20 times what it was actually worth!?

The government also underwrites some of it's dept.

http://www.independent.co.uk/sport/football/european/exclusive-real-madrid-under-investigation-amid-allegations-of-illegal-state-aid-8557550.html

You should try reading all the article you're linking to.

Also, what do you mean by "The government also underwrites some of it's dept"

 

[Bold Seagull]

You should try reading all the article you're linking to.

Also, what do you mean by "The government also underwrites some of it's dept"

You can try some further reading here...

http://swissramble.blogspot.co.uk/2012/04/truth-about-debt-at-barcelona-and-real.html

 

[Tom Bombadil]

You should try reading all the article you're linking to.

Also, what do you mean by "The government also underwrites some of it's dept"

I read all that article. There's nothing in there that doesn't support his argument.

 

[gordonchas]

You can try some further reading here...

http://swissramble.blogspot.co.uk/2012/04/truth-about-debt-at-barcelona-and-real.html

Well, yes, thanks for that because I base a lot of my info on Swiss Ramble and that says exactly what I told you above.

I read all that article. There's nothing in there that doesn't support his argument.

And what argument is that? That there's an as yet unsubstantiated allegation about the value of a land swap deal concerning valuations that were made 13 years apart?

When the EU finds that that there was a deliberate overvaluation then there will be a point to this, until then there is nothing.

The article also mentions investigations into Valencia plus five Dutch clubs and the actual original deal to give West Ham the Olympic Stadium which was scrapped because it did actually break the rules.

Bold Seagull actually wrote "Didn't they sell their training ground back to the government for something like 20 times what it was actually worth!" which was not what the article in the Independent was about (that was an entirely separate land deal).

 

[BensGrandad]

I posted on another thread how i had been told that Santander write off their debts every year and somebody posted that was incorrect and gave a full explanation of how RM cannot be made bankrupt under some old law and the government/banks write their debts off.

 

[Marxo]

Just to make it clear, my post is not an English or EPL point of view, I took most of it from 'De Morgen' a national Belgian (Flemish) newspaper that is not pro England or anti Spain. So making comparisons with English clubs has no bearing on the point made by the journalist Filip Michiels.

 

[gordonchas]

Just to make it clear, my post is not an English or EPL point of view, I took most of it from 'De Morgen' a national Belgian (Flemish) newspaper that is not pro England or anti Spain. So making comparisons with English clubs has no bearing on the point made by the journalist Filip Michiels.

Marxo, there's nothing on your original post to suggest that you lifted it from another site and that it's not your own opinion. No matter, comparisons are not only valid they are absolutely essential to put it into context.

Is the Belgian journalist suggesting that Real Madrid are in receipt of EU bail out money intended for Bankia because Bankia have loaned them money? If he is suggesting that then he should stick to reporting on sport because he must be a financial dunce. What's your opinion - you posted it?

 

[GingerBeerMan]

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

No, I think he said wages were higher but they didn't always get paid regularly / on time.