Up to 100 European soccer clubs are lining up for a credit facility that UEFA is setting up to help teams recover financially from the pandemic.
European soccer’s governing body is finalizing a $2.3 billion credit line that will initially help clubs pay for unsettled transfer fees. Those fees typically go to lower-revenue clubs renting out players to more lucrative squads in leagues higher up the pyramid.
- The credit facility is the first step in a three-part plan that seeks to stabilize European soccer’s long-term financial picture.
- UEFA plans to set up a separate fund to buffer against future crises.
- The organization could rewrite its financial rules to increase the timeline in which teams may restructure debts from five to seven years and introduce a luxury tax on teams that spend over a certain percentage of revenue — perhaps 70% — on player salaries.
UEFA is now selecting banks to help fund the credit facility. Loans will be secured against broadcast income, and teams will receive a lower interest rate than what would otherwise be available.
The organization earns nearly $4 billion annually in broadcast rights for all of its competitions — namely the Champions League, which tallied $2.37 billion in media rights in the 2018-2019 season.