Saturday, 30 July 2011

Let's hope the lad's value holds up....

In what must be one of the more bizarre twists in the story of the banking crisis Christiano Ronaldo is being used as collateral. Or so Süddeutsche Zeitung reports:

The daily reports that the Bankia group of savings banks, which financed Real Madrid’s acquisition of the Portuguese player, is now seeking to borrow funds from the European Central Bank. In response to the ECB’s demand for guarantees, Bankio are putting up… Ronaldo and the Brazilian Kaka, who also plays for the Madrid football club. In 2009, Real borrowed 76.5 million euros to pay transfer fees of 100 millions euros to Manchester United, and 60 million to Milan AC.

Which (and those who make comparisons between Manchester United's financial position and that of the two big Spanish clubs should note this) is a pretty sound bet since:

Bankia would first have to become insolvent. Thereafter, Real would have to default on its loans, which are secured by advertising and television revenues. It goes without saying that Real Madrid is in debt to the tune of several million euros. However, in Spain football clubs have a history of obtaining publicly funded bailouts — just like the country’s banks.”

Real Madrid are, just like those big banks, 'too big to fail' so Ronnie's as safe an asset as you can get (so long as he keeps playing).


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