Up to 100 European football clubs are stand in line for a credit facility that UEFA is setting up to help teams recover financially from the pandemic.
The governing body of European football is in the process of finalizing a $ 2.3 billion line of credit that will initially help clubs pay off unpaid transfer fees. These fees typically go to low-income clubs that hire players to more lucrative teams in leagues higher in the pyramid.
- The credit facility is the first step in a three-part plan that aims to stabilize the long-term financial situation of European football.
- UEFA plans to create a separate fund to cushion future crises.
- The organization could rewrite its financial rules to increase the timeframe within which teams can restructure debt from five to seven years and introduce a luxury tax on teams that spend more than a certain percentage of income – maybe 70% – on player salaries.
UEFA is now selecting banks to help fund the credit facility. The loans will be secured against broadcast revenue and teams will receive a lower interest rate than would otherwise be available.
Organization wins almost $ 4 billion each year in broadcasting rights for all its competitions, namely the Champions League, which counted $ 2.37 billion in media rights for the 2018-2019 season.