Sporting Lisbon in Talks to Repurchase Debt Worth $282M

Sporting Lisbon is reportedly in talks to repurchase debt worth $282 million from its two largest lenders, Novo Banco SA and Banco Comercial Portugues SA.

The potential buyback follows Sporting Lisbon’s net loss of $37 million in the financial year ending June 30. The club saw its total debt reach $349 million for the year, up from $335 million in FY2020 — despite winning its first Primeira Liga title in 19 years.

According to Bloomberg, Sporting Lisbon plans to repurchase debt by borrowing money from Apollo Global Management, a New York-based private equity firm that agreed to merge with Athene in January in a deal valued at $11 billion.

• The debt will convert into equity if there’s a failure to repay.
• There’s potential for the debt to be bought back at a discount to its face value.
• No final agreement has been reached, as other bidders consider acquiring the debt.

Sporting Lisbon has suffered long-standing financial losses due to the global pandemic. Last year, the club cut player salaries by 40% for three months due to the suspension of games, while its board of directors took a 50% cut.