Barcelona opt to extend and increase loan in order to finance stadium revamp


Barcelona have had their fair share of frustrations this season, namely a shocking exit from the Europa League at the hands of Eintracht Frankfurt and having to see bitter rivals Real Madrid canter off towards the league title.

In addition, their finances have been in disarray for quite some time, leading to the Spanish powerhouse having to take out massive loans from Goldman Sachs in order to finance a much-needed refurbishment of Camp Nou.  

New reports now indicate that the Blaugrana have taken out an additional loan, which will become available in 2023. In addition, the club have extended their terms of their already existing loan.

As per these reports, Barcelona's initial funding secured from Goldman Sachs was approximately $860 million (€815 million), which they acquired via means of a bridge loan worth about $95 million (€90 million). 

The COVID-19 pandemic made it trickier for Barcelona to pay back this initial investment, which was then extended twice to give them more time, from 2021 to February 2022, and now has been extended for a third time. In addition, that bridge loan has been doubled to approximately $190 million (€180 million).

However, if fans of the club think that these additional funds will be used for new players, they will be sorely disappointed as the loan is to be used towards the financing of a new stadium. Furthermore, the new terms stipulate that construction must commence before the end of 2022 and needs to be done by the end of 2025 - meaning that time is of the essence if the club don't want to find themselves in a very uncomfortable situation with their creditors.

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