Facing financial uncertainty due to the cancelation of the 2019-20 season, the general assembly of Ligue 1 and Ligue 2 teams approved a resolution that will allow the Ligue de Football Professionnel (LFP) to take out a state-guaranteed loan of €224.5 million.
According to L’Equipe (Sport Business), representatives from 40 French clubs met on Monday and voted for the rescue plan with Nîmes Olympique abstaining.
The loan amount, which is slightly more than the amount Paris Saint-Germain paid for Neymar Jr. in 2017, will help cover the loss in revenue from broadcast fees after Canal Plus and beIN Sports terminated their contract with the LFP due to the cancelation of the 2019-20 Ligue 1 and Ligue 2 seasons.
The loan will help keep French clubs from going into bankruptcy, which was predicted at the outset of the coronavirus crisis last March by Bernard Caïazzo, co-president of AS Saint-Étienne.
Even PSG with all of their financial muscle won’t be immune to the drastic drop in revenue. Club president, Nasser Al-Khelaifi, recently stated that he expects “colossal losses” and would like the players to accept a reduced salary to help soften the blow, which they’ve yet to agree to.
As with all loans, paying it back won’t be easy but it’s better than the alternative at the moment.
Want more PSG? Visit the PSG Talk Podcast Network page and subscribe to PSG Talking, The 1970, and 24th & Parc.
