Jul 3 2009, 10:11 AM
QUOTE(niuchin @ Jul 2 2009, 07:09 PM)
These Kaka and CR signings are straight forward deals financed by two financial institutions, Caja Madrid and Banco Santander.
Spanish building society Caja Madrid issued a loan of 76.5 million euros (C$120 million) to Real Madrid, which has put up two undisclosed sources of collateral. Spain's largest bank, Banco Santander, has agreed to lend Real Madrid a similar amount.
Finance Minister Elena Salgado said Tuesday she finds it odd that Caja Madrid can come up with so much money for Madrid when loans are scarce for everyday people and companies.
"It surprises me, and what I would ask banks is that: if they have liquidity, that they also make loans to small and medium-size companies and families," she said. "I would ask that they make an effort for them."
Thats why theres an outcry by the rest of the country against these mega signings and their exceptional low tax rates for foreign players at other Spanish taxpayers expense.
Banks will be naturally stingy now. But that doesn't mean that no one is able to take out a loan. If an individual can prove that he is financially capable of handling the loan, banks will not refuse. Real Madrid, like most football clubs, are relatively unaffected from the economic crisis mainly because most of their income is guaranteed. TV deals have already been signed. Sponsorships are a similar story. Match day revenues are relatively constant. Is it that hard to believe that banks legitimately have done their due diligence and loaned us the money? This part: "has put up two undisclosed sources of collateral" says it all. It's not like the banks have been irresponsible. Spanish building society Caja Madrid issued a loan of 76.5 million euros (C$120 million) to Real Madrid, which has put up two undisclosed sources of collateral. Spain's largest bank, Banco Santander, has agreed to lend Real Madrid a similar amount.
Finance Minister Elena Salgado said Tuesday she finds it odd that Caja Madrid can come up with so much money for Madrid when loans are scarce for everyday people and companies.
"It surprises me, and what I would ask banks is that: if they have liquidity, that they also make loans to small and medium-size companies and families," she said. "I would ask that they make an effort for them."
Thats why theres an outcry by the rest of the country against these mega signings and their exceptional low tax rates for foreign players at other Spanish taxpayers expense.
Another way to put it: If a guy (who doesn't have a good financial record) fails to get a loan for 20k to buy a car while a capable businessman is able to get a 300k loan for a Benz he wants to buy, do you go blaming the bank? the businessman? or the financially irresponsible moron?
The finance minister has legitimate concerns because most of the money is going out of the country. But you also have to look at the fact that we are investing in player assets who would give us the potential to bring in even more money globally. Our 2 huge spendings so far have been Kaka and Ronaldo. Albiol was bought for 15ME and Benzema 35ME which can be considered as less extravagant fees, and we've even refused to buy Villa for 50ME, so we've obviously done our homework regarding our finances
There hasn't been an outcry believe it or not (well except for the people over at Barca). And banks do not even get their money from taxes for crying out loud. Are you seriously that naive?
And just to add, in addition to those 2 banks, it was La Caixa de Catalunya (that's right a Catalan bank) that provided Perez with the 57ME guarantee needed to run for presidency. Money which could be used if Real Madrid were in any sort of financial trouble.
If you haven't got the gist of it, then get this into that thick skull of yours: It is strictly business.
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Previously to fund the Galacticos I era, RM was able to sell its former training ground Ciudad Deportiva at a handsome sum over 480 million euros. This was a controversial land and property deal.
The gist of it is that in late 1990s with Real Madrid's debts mounting, plans to re-zone and commercially develop the land were mooted several times, but it wasn't until the presidency of Florentino Perez that these plans came to fruition.
In 2000 there was a motion proposed, voted on, and approved in the Madrid parliament to re-zone the area of the Ciudad Deportiva, which until then was zoned for non-commercial purposes. In this vote, the Partido Popular (People's Party) and the Izquierda Unida (United Left) voted in favor, the PSOE (Socialist Party) voting against.
Bottom line is that it took friends and supporters in high places (gahmen) to aid in rezoning the property deals. At the end of the day RM (socios), Perez and his cronies were able to benefit and the rest is history. Of course its understandable the rest of the country (including RM rivals Athletico Madrid, Valencia, Barca et al) were not too 'thrilled' about the helping hand of the gahmen.
Verx, thats the financial wherewithal (finanacial muscle via political clout) that RM has. Can you refute above. No?
Just imagine if Liverpool were given a similar lending hand by the gahmen. Malcolm Glazer will not have to sell his Montreal Canadiens.
These facts are known. Just that I am posting these here at the appropriate moment.
Cheers
Yes the facts are well known. The gist of it is that in late 1990s with Real Madrid's debts mounting, plans to re-zone and commercially develop the land were mooted several times, but it wasn't until the presidency of Florentino Perez that these plans came to fruition.
In 2000 there was a motion proposed, voted on, and approved in the Madrid parliament to re-zone the area of the Ciudad Deportiva, which until then was zoned for non-commercial purposes. In this vote, the Partido Popular (People's Party) and the Izquierda Unida (United Left) voted in favor, the PSOE (Socialist Party) voting against.
Bottom line is that it took friends and supporters in high places (gahmen) to aid in rezoning the property deals. At the end of the day RM (socios), Perez and his cronies were able to benefit and the rest is history. Of course its understandable the rest of the country (including RM rivals Athletico Madrid, Valencia, Barca et al) were not too 'thrilled' about the helping hand of the gahmen.
Verx, thats the financial wherewithal (finanacial muscle via political clout) that RM has. Can you refute above. No?
Just imagine if Liverpool were given a similar lending hand by the gahmen. Malcolm Glazer will not have to sell his Montreal Canadiens.
These facts are known. Just that I am posting these here at the appropriate moment.
Cheers
The fact that Ciudad Deportiva was a training ground built in the 60's on what was originally the outskirts of Madrid.
The fact that Madrid has since expanded as a city and that in 1999 the ground was smack right at the heart of the city.
The fact that the zoning was voted on democratically and that there was no controversy about it cause almost everyone in the city knew it was the right decision.
The fact that we sold it off to private investors which meant that we had to sell it off according to the market.
The fact that the 4 skyscrapers are now acting as the key financial hub of the city thus vindicating the price paid for it.
The fact that Barca have tried doing the same thing thus throwing all your points regarding us misusing some sort of political power out the window.
If Liverpool has a training ground on a valuable piece of land then maybe you can compare. If not it just smacks of sour grapes if you ask me.
And didn't I ask you to take it to the RM forum if you wanted to discuss about this? Why post here when you know it's irrelevant to the thread topic?
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Would it hurt you guys(Liverpool fans) to the bits? 
El Classico i hundred times interesting now!!! 
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