‘How is that this allowed to occur?’: Money owed at Champions League giants with highest-paid soccer boss on the earth ‘spiral over $1BN’

Champions League contenders Atletico Madrid, who spent $ 140 million on Joao Felix final 12 months and pay Diego Simeone the best wage of any soccer supervisor on the earth, have reportedly seen their money owed soar above $ 1 billion.

La Liga giants Atletico’s astonishing debt ranges, that are set to be ratified with a vote on their preliminary annual accounts, come regardless of revenues which are stated to incorporate nearly $ 48 million from industrial partnerships, simply shy of $ 93 million from promoting and nearly $ 147 million from their share of profitable broadcast rights.

Their taking part in prices function a wage of round $ 49 million for former Argentina star Simeone, who has guided the membership to the knockout phases of the Champions League in all however one of many final seven seasons, twice struggling late losses to metropolis rivals Actual Madrid within the closing.

Uruguay ahead Luis Suarez joined for a modest price of round $ 7 million this 12 months, however his whopping reported wage of $ 210,000 every week illustrates a part of the explanation why former membership Barcelona, who’ve additionally confronted monetary pressures this 12 months, had been eager to promote the striker.

Atletico 2019/20 debt €999 million 🤯
Barça 2019/20 debt €820 million 😳

Actual Madrid present debt is unknown in the mean time however in August 2019 they reported ZERO debt for 2018/19 & MARCA report a €320,000 revenue for 2019/20.

— M•A•J (@Ultra_Suristic) November 24, 2020

🎶999 million euros of debt sitting on a wall🎶

— AtléticoFans (@AtleticoFans) November 24, 2020

Then an adolescent, Joao Felix grew to become the fifth most costly signing in historical past when he joined from Benfica in July 2019, and the Portugal ahead is believed to have agreed a primary wage of $ three.9 million when he grew to become the membership’s document signing.

Atletico’s funds have constantly come beneath scrutiny since they grew to become a PLC in 1992. In 2000, the membership’s places of work had been raided and late former president Jesus Gil – who has been described as “Spanish soccer’s Donald Trump” – was jailed for three-and-a-half years.

The membership prevented tax tasks of $ 46 million on their means again to La Liga after relegation, however owed collectors greater than $ 557 million by the point former participant Simeone was appointed in 2011.

UEFA quickly withheld Atletico’s Europa League prize cash in 2012 in a punishment that was later overturned, they usually had been extensively reported to have gone past their means after they signed Radamel Falcao from Porto for $ 43 million, having offered Sergio Aguero to Manchester Metropolis in a bid to fund tax funds.

Atletico spent round $ 289 million on the 68,000-capacity Wanda Metropolitano, which has been their residence since 2017, regardless of the high-profile debt issues which have dogged them since playboy businessman Gil’s reign.

Jesus Gil put the membership into debt many years in the past didn't pay taxes and likewise left his successors a crumbling stadium. The explanation it's not a multitude is as a result of the debt is now non-public and paid in installments but it surely's the explanation Atletico are a promote to purchase workforce and might be for years to come back

— Daniel (@halfonzio) November 29, 2020

It's a managed debt they pay in installments plus they needed to pay for the brand new stadium. COVID added to debt. They'll simply need to preserve the installments going for an additional 12 months or 2.

— Daniel (@halfonzio) November 24, 2020

The money owed from the earlier proprietor they usually pay in installments to non-public traders in order that they'll by no means go into administration. They use the cash from High three/UCL and television in order that they'll by no means need to promote gamers. Simply means they nonetheless need to be strict with wages.

— Daniel (@halfonzio) November 24, 2020

“How is that this allowed to occur?” requested one fan, whereas others pointed to various historic golf equipment in England which have gone out of enterprise this 12 months as a result of they had been unable to repay comparatively tiny calls for.

“Atletico have been in debt for many years,” identified one analyst. “Covid-19 has simply exasperated the present debt, that is all. They’re going to proceed to pay it off in instalments.

“They use the cash from the Champions League and TV, in order that they’ll by no means need to promote gamers. It simply signifies that they nonetheless need to be strict with wages.”

Earlier this month, Atletico spent round $ 12 million on cash-strapped Valencia’s Geoffrey Kondogbia, signed as a substitute for Thomas Partey following the Ghana midfielder’s $ 59 million transfer to Premier League facet Arsenal earlier this season.

Atletico face the primary of two matches that may determine whether or not they qualify for the knockout phases of the Champions League tomorrow, welcoming reigning champions Bayern as they bid to keep up their two-point hole over third-placed Lokomotiv Moscow of their group.

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