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Cristiano Ronaldo as collateral of ECB’s loan?

The most expensive soccer player in history could be used to guarantee the solvency of a Spanish bank ...

Article also available in : English EN | français FR

According to the German newspaper Süddeutsche Zeitung, Bankia group, which funded the acquisition of the Portuguese player from Real Madrid, is seeking to borrow funds from the European Central Bank.

As for the debt collateral, Bankia would like to pledge... Ronaldo and Kaka, the brazilian star who plays for Real Madrid.

In 2009, Real borrowed 76.5 million euros to help covering 100 million euros deal with Manchester United and 60 million with AC Milan, in order to recruit the two players. Could we then end up in a situation where the ECB would become the owner of one of the players ? The answer is yes, at least in theory. First, we need Bankia to become insolvent and, second, Real Madrid to default on loans guaranteed by advertising and TV rights.

However, in Spain, many football clubs, like banks, have been bailed out by the governement

Next Finance August 2011

Article also available in : English EN | français FR



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