football test

Today, Barcelona’s Vice president for finance, Javier Faus, explained the Loan tale. Here you can find a link to the conference on the official website. After struggling with the Google translation –especially with the financial terms, this is the briefing that we can figure so far:

It’s a syndicated five years loan of 155 million led by La Caixa and Banco Santander -25% each-arrangers beside eight financial institutions providing the rest (50%). The Interest is 2.5 while the guarantees could be renegotiated by the banks three years from now.

What will be done with these 155 million?


- 79 M will be used to refinance bank debts.
- 15 M –translation didn’t help- but I can make a guess that it will go to close debts toward other clubs from previous transfers.
- 61 M well serve as financial funding’s to pay salaries and other pending commitments delayed since June 30.

Then he explains why there was a delay in receiving the loan and insured the strong financial background of the club regardless of the managerial chaos of the previous board (his words).

How do these 155 million will be returned?

The club –based on the agreement with the banks- will have to pay 31 M per year for the following 5 years. The club objective is to generate 50 M annual profit, 31 M for the loan and the rest for remodeling the Nou camp.


Afterward the 50 M will be the budget saved for transfers. For this season, the purchase of David Villa and sales of Chygrynskiy and Touré balance each other and the club can still spend 50 million euros.


First impression:


There is still time to figure some more details but I can share the following remarks at the moment:

Getting this loan at this period of economic crises is a positive sign that the club is still well trusted. It’s normal for the loan to be a syndicated kind as its suicidal for one bank to take all the risk of loaning 155 M to one business.

My primary concern in this matter is the impact of austerity procedures that will be applied to meet the reqiurments of this loan. How will it affect the club on the long term? What are the main operation costs that will be chopped? If it’s all about transfers budget I am all for it. Will this situation leave an impact on the sports that generate no profit (usually financed from the football revenues)? Will this affect the spending on the youth academies? Scouting? Etc…

Secondly, the renegotiating of the bank guarantees three years from now is unclear. Not saying it is bad or good, it depends on what ideas were negotiated behind closed doors. But it’s a bit strange not to set all the conditions at once, unless if there are already stated conditional actions to activate depending on what happens in the first three years.

The 79 M that will finance the debts need more explanation. Will they close debts due, debts with bad interest or they will pay interest of existing debts with the debt kept untouched. If it is a combination of all then how will they distribute this cash on each sector?

The 15 M for previous transfers is no brainer. The new financial fair play regulations dictate that debts between clubs are not allowed.

The 61 M for current commitments –taking good intentions- is also a must.


Regarding transfer budget, he mentioned that there will be 50 M later on for transfers. But through Google transfer it wasn’t clear if he meant 5 years from now. I think the team is strong enough for the following 3 years, but still some changes will be needed and certainly we will not be outside the transfer market for the following 5 years. As for the 50 M budget afterward, it’s just a number, not a value. With the current inflation rate in players’ prices the 50 M will not be enough to strengthen Barca B. With the new regulations, who know? Generally speaking I don’t get worried about transfer budgets, and I don’t think you should.

It’s a good thing that the new board received this amount of cash in hand, it should be enough to start the reengineering process the way the planned it. There is no way to make any evaluations now, let’s wait and see. But one thing for sure is that, there are no severe concerns.

Or is it some politics gimmick to showcase Rosell doing something great and is saving the club?
What is really happening here?



This respond is a fast customization for comments I made about this matter on Barcelona Football blog. Soon I may write a more structured post about it.

Let’s agree that no one really knows the facts regarding the financial stability of the club. Laporta and co manipulated the numbers before. Sandro and co are manipulating the numbers now. I will manipulate the numbers if one day-God forbids-I became a board member. That’s something any board at any company does based on the firm interests and strategic plans toward “the others”. But sometimes it’s good to keep it simple rather than being over analytic:

Laporta and co delivered a budget for last season to the assembly. They claimed there was profit. Let’s assume that they were lying. But I can’t imagine that people who approved the board’s budget days before the election were that naive not to figure out there is no money to make coffee for any visitor who may come to the club’s offices this month. Believe me, they would have ridden this wave to the extreme against the continuity candidate. I can understand the presence of cash with unrecognized payable Accounts. But lack of cash? Not at that moment. Later? I will come back to that.

Taking Sandro’s words as the nonnegotiable facts, he said we will take a 150 M loan. He also said we have 89 M for transfers. And he said the club is in a disastrous situation, financially. Well then, for a disastrous situation we need a crisis management with enough wisdom to balance sports needs with the obligations that secure the club survival. A simple T-Ledger can help, putting the bank loans requested on one side and the transfer budget available+Yaya+Chegrnskiy transfers on the other side. Buy no players. Bring the loaned players back home and sell no more players. The Squad will still be competitive enough for next season and you will buy time to make a U-turn in terms of financing. You may not need the 150 M loan this way. Unless if the idea from the first moment was to invest the bank’s money in a project we planned rather than using the Clubs money. A project with ROI being higher than bank interest. Or may be switching some existing debts that have worse impact on the club's finantial stability.That’s not a bad loan then, it’s an investment that doesnt reflect a bad financial status but a growth ambition. But to tell me we can’t pay salaries. We need a loan for 150 M. then you book a ticket to South Africa to pay Wenger 40 M, while bragging that you have 90 M to spend. Thats a bit confusing for me. When you sell a player for 15 M knowing that -regardless of his quality- it’s unlikely to buy another for the same price without making the same risk we made when we signed this one (being untested on highest level). When you say we had to sell Chegrnskiy to pay salaries and urgent commitments then you add the transfer return (15 M) to the transfer budget, then there is something unreasonable to say the least. Which is not a promising start.


All these stories published in the past two weeks about Barca becoming a Portsmouth, and being unable to buy players are pure none sense. It was all “concluded” from Sandro’s acrobatic moves. Still, even if we take Sandro seriously -and I don’t- he was basically talking about cash flow for THIS month. Based on his estimations -had I mentioned that I don’t take him seriously?- everything will be OK afterward…don’t worry…calm down…our Rambo is working on it and he will save the day. You can’t be grateful enough that he rescued you from Laporta the Grinch, nor he wants you to. He feels he was sent to us -mortals- to save our dreams from Txiki the serial killer.

But look at the bright side-how desperate, hah?- I will live in a fantasy bubble believing that Sandro did all that as a part of a master plan to pull the prices of our transfer targets down:”Hleb? Ibra? Chigsomething? Caceres? hohoho mate! you are cutting deep! Dont bring transfers’ history to the table. Will you please please puleazze lower your demands and expectations?! We are miserable now.Look…look at our little boy Iniesta, see how pale he is? We are starving and we need to buy your player! hm…Can’t you manage a discount?”. I know it sounds more as a Rosella Sensi, but if it helps, high five Sandro! As I mentioned before, forget about this Cesc deal. If Sandro brings me an established CB and a DM, I will call him the transfers’ Casanova.

As you see, I am still giving the guy a chance. But soon I will lose my patience if he keep ignoring the instructions book. And when I lose my patience, I cant do a shit, as this guy is still popular enough in Catalunya to ban me from visiting the country!

Barcelona’s current lack of cash –if exists- could be a mix of different factors. The club could (and should) be better financially. But it’s still far from being in the Crisis Sandro Rosell and co try to show. The election’s factor forced Laporta to make a fast shopping tour getting Villa from Valencia with a hope that this will help his continuity candidate. He said that if Barca waited till after world cup they would have paid 20 M more, giving himself an excuse on advance. In fact he was right, but it’s possible that this transaction left a temporary impact on the cash flow level (especially that Valencia needed the money to be installed immediately).

The club requested the 150 bank loan during Laporta’s era, which gives an answer on why the assembly had no problems with Laporta’s last auditing (Noting that Barca has one of the lowest-if not THE lowest- bank loans=€29m). One of the means to pay back the new loan (155 M) in Laporta’s proposal was increasing membership fees. Sandro does not want to increase that fee so he had to come back with another proposal to the bank. That was another reason to delay the whole process, and delay the cash injection.

Sandro is trying to get advantage of the whole situation to damage Laporta’s image, which is not a surprise at all.

For more about Ibra transfer, read the last paragraphs in this article.
Dont forget, if you are sick of Cesc stories, do not worry, this rant may help you a little.

Laporta leaves the club


Upset, distressed, and sad


He failed to sign the Cesc


He still can’t understand.


He always dreamed to be


The one who set him free


That Catalan hostage who


He promised to rescue.


………………………………



Wenger was also down


When Laporta left the crown


He thought the story will end


There’ll be no Cesc’s trend


No more he can whine


And scream:”Cesc is mine!


Barca is just a spine!


they really crossed the line!”


………………………………




“We’re more than a club”


Hymned the Cules’ crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



And you really really thought


That’s the end of all the pain


If that’s what you sought


You better think again


Once more they had to meet


And fight for a flesh of meat


The mature Sandro and Wenger


Where showing each other the finger


Sandro grabbed Cesc’s arm


“Wenger! LET-HIM-GO!”


Wenger, like red alarm:


“Never! NO NO! NO NO!”


………………………………




“We’re more than a club”


Hymned the Cules’ crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



Wenger took Cesc aside


And started to preach with pride


“Remember, you was a child


And your football life was hard


Then I made my magic tap


So you end up on my lap


I spent sleepless nights


So you reach the glorious heights


Don’t dare to leave me now


That’s what I’ll not allow”


Cesc’s respond was clear


A smile, a hug, a tear


“I will never let you down


I will never leave your town”


Sandro called for him


Cesc made a skim


They had a Catalan talk


While Wenger can only gawk


“You listen to me now”


Sandro calmly said


“You will never know how


But your parents will be died


If you don’t return among


people where you belong”


Cesc’s respond was clear


A smile, a hug, a tear


“Save me from my shame


So I honor my Catalan name”


………………………………



“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



Then a fan who is not a Gooner


But hates the Cules so much


He refused to be a viewer


And decided to stamp his touch


He felt this is a chance


To bash that Barca stance


A team he envied for long


For being attractive and strong


“You are classless” he said


“You should be ashamed instead


My club will never do so


That’s so rude and so low


My club is better than yours”


He’s glad, he finally scores.


From the publics’ rolling eyes


You can figure the facts from lies.


………………………………



“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



Then an anti-Gooners dude


Decided to give his take


After being rationally screwed


By the Gooner’s football quake


“Your club is titles-free


That’s the best that you can be


You must release the boy


To move where he can enjoy


He is a Catalan man


He is not your slave or toy


He’ll do whatever he can


His dreams you can’t destroy”


He just want Cesc to leave


So the team turns so weak


And the Gooners live the grieve


They caused week after week.


………………………………



“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



A tabloid posted news


That left some deeper bruise


To win some more views


They had this claim to use:


“A Catalan child was born”


And raised a passive claim


Gooners roared the horn


"Cesc" was the infant's name!


Since when Catalans choose


This name for their child!


And Gooners’ angry boos


“This case should be filed!”


“That’s only Sandro’s fault


He is filling the wound with salt”




………………………………




“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



A Barca player was talking


Live on "The public" TV


announcing Cesc’s signing


As clear as it could be


An angry bitching Gooner


Was met by a Cule’s smile


He asked him to be cooler


And started to preach in style


“It’s not what you saw


So stop showing your claw


Cheer up for god’s sake!


He didn’t say it, that’s fake!”


………………………………




“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



“Just remember your time


With pique and with Messi


What a beautiful football rhyme


Then Arsene made it Messy”




“ Here you are the head


There you’ll be the tail!


Who will you play instead?


Xavi or the pale?!”


………………………………



“We’re more than a club”


Hymned the Cules crew.


On the same blogging pub


The Gooners yelled “F**k you!”


………………………………



This ramble will no doubt


continue. It won't end here.


Lots to write about


So stay tuned. Have no fear.


The circus is so “Swanky”


Between the monkey and donkey!

Its THE DAY! A new nation will celebrate the world cup for the first time. How fitting considering that its the first time Africa hosts the tournament. The best two football nations that have never won it will meet to decide who will end up being the greatest nation that never won it. It will be a historical day for one side and a heart breaking for another after finally being that close.



Who will you pray for? I am all for Spain, though I always dreamed of the day Holland-not Spain- will win the tournament. Why? Because I was raised to worship the oranges football style. I consider Rinus Michels as my coaching icon. I mourn the 1974 team before and after every world cup for being the team that deserved the title more than any other team that lost it -beside Brazil 1982 may be. Their fans have that cheerful flavor in the stadium. All that being a relatively small country with -also relatively- limited resources. But those who were capable of beating the wild oceans still suffer to beat their bad luck and bring that dear title home.

But not this team. I can go as far as saying this is the worst team to win this title for Holland. Not that they are bad or anything, but there is a concern that this team may cause Holland football the same ruining infection the 1966 world cup winners caused for England. That team became the uncompromisable standard for English football and players were reshaped and evaluated per se. Coaches were struggling to imitate Alf Ramsey to an extreme that any innovative idea faced automatic rejection. And here we are 44 years later, Holland bring a different football approach to the world cup than they used to do, the common one or the so called "realistic". For the first time this team neither tastes orange nor carrot. There is no refreshing juice within. Healthy? May be. But its as good to health as a tablet. You need it, but you never seek it with joy. Its scary to think that if this team wins,  Holland from bottom to top, from amateurs to first division, from youth to superstars will seek more of the same. Current coach already pointed out that "you cant count anymore on luck...Attractive football is a destructive ideology in Holland's football.".  Its not that attractive football is the right way while the rest is wrong. Its just the only different style facing the rest. We need that. Holland 1974 were as close to the title as this team- or even closer. I hope it keep being the same next sunrise.

Spain deserve this one, regardless of laughable stuff you read in the past few days. Its the only team that all the opponents (Aside of Chile may be) were more concerned to stop than to beat. The unique style of play. Being a team with all what the word can express. Not group of individuals with a level of understanding. A team. And with the huge impact total football had on Spanish football -and Barcelona methodology in specific- its just fitting for this Spanish team to defeat this Holland.

I will not get into tactics and systems, nothing to say more than what previously said about the two teams. I will invite you to enjoy this final as it will be a great pleasure for the eye.