The Spanish FA (RFEF) has announced a bailout plan of €500 million to help the first and second division clubs financially. Spain has emerged as one of the worst affected countries by the coronavirus pandemic in the world, which led to the suspension of LaLiga, accruing huge losses for clubs.
LaLiga was suspended until April on March 12 due to the coronavirus outbreak. The suspension has impacted the clubs financially due to the loss of broadcasters’ revenue. Meanwhile, clubs also lost out on matchday incomes. During such times of distress, the Spanish FA has come forward to bail out the debt-ridden clubs.
Spanish FA president Luis Rubiales confirmed the bailout package earlier this week. He claimed that they were willing to lend support to professional football in Spain. He claimed that he was willing to interact with LaLiga clubs to help them avoid bankruptcy.
The Spanish FA president has asserted that they have held talks with several banks and are willing to offer a line of credit worth €500 million. The clubs will also get the flexibility of repaying the amount over a six-year period, said the president.
LaLiga president Javier Tebas had cited May 18 as the deadline date for LaLiga to resume. He also hoped that league fixtures will be completed by June 30. However, the Spanish FA president has claimed that it is practically impossible to resume the competition by mid-May. He claimed that there were temporary hospitals set up in Madrid while the military emergency units were out on the streets, meaning it was difficult to resume anytime soon.
Spain has emerged as one of the hotspots of the coronavirus pandemic. This led to a complete lockdown of the country. Suspension of LaLiga has impacted the likes of Barcelona and Real Madrid financially. There were reports suggesting that Barcelona could ask their players to take a pay-cut to help the club during times of financial distress. Under these circumstances, a bailout package might help the clubs to a great extent.