The Board of Directors approved the request for 500 million pesos from three banks to meet the obligations for the coming months. What should they pay and how do they plan to cancel it.
“The River Board of Directors approved the request for a loan of 500 million pesos to three different banks. The club needs that money to meet various obligations in the coming months. The agreement states that it will be canceled in September next year. As a guarantee, the social contributions and the agreement with Turkish Airlines, the main sponsor of the club, were put.
Among the most urgent commitments that River has to fulfill in the coming months are the club’s current expenses and the refinancing of salaries with footballers (In October the salary cap agreed at the beginning of the pandemic ends), which was set at a maximum of 250 thousand pesos per month). On the other hand, although there will be an outlay of money to pay for the reforms that are being made in the Monumental playing field, at a cost of 177 million pesos, that work will not be paid for with the loan, but with genuine income.
On the other hand there are multiplayer pass debts (Juan Fernando Quintero, Jorge Carrascal, Matías Suárez, Paulo Díaz, Nicolás De La Cruz and Fabrizio Angileri), which amount to about 10 million dollars but those count go through another financial channel.
“The loan is to cover not only the campus, but also for all club expenses, in a context where we had a significant loss by not having ticketing and not having the renewal of season tickets, “commented an important leader.
One of River’s great revenues comes from the sale of the ticketing (sale of season tickets plus extra collections for each game). Due to the suspension of football due to the coronavirus pandemic, this year, Núñez’s club lost an estimated figure between 600 and 700 million pesos.
River requested the 500 million pesos loan from three different banks: Supervielle, CMF and Banco de San Juan. It was agreed that the sum must be repaid in 3 installments: The first, of 150 million pesos, on March 25, 2021; the second, of another 150 million pesos on June 25, 2021 and the last, of 200 million pesos, on September 25, 2021. Interest will be paid monthly, with a variable rate according to the calculation of the Badlar rate.
River put as a guarantee of this loan the collection of social contributions (so far, 90 percent of the partners continue to pay monthly) and what they must receive (a little more than 3 million dollars) next year for the Sponsorship agreement with Turkish Airlines, its main sponsor, whose signature is on the chest of the shirt.
These surgeries are not new in Núñez. In fact, it is a loan similar to the one the club had taken out last year and paid off in April. During Rodolfo D’Onofrio’s first term in office, River had also arranged a long-term loan, of more than three years, with the aim of paying off huge debts that the club carried from the Daniel Passarella era.
Supported by the sporting successes of Marcelo Gallardo’s team, the millionaire sales of some players and the economic order commanded by former treasurer Andrés Ballotta, the institution was able to cancel the commitment six months before the end of the first term of the current president.
The difference is that that loan was a private trust made up of individuals. The one now is through banks. But just like that time the idea is that it be paid before the end of D’Onofrio’s presidential term.