Football: Up to 100 European football clubs consider € 2 billion in UEFA stimulus funds, Football News & Top Stories

(BLOOMBERG) – No less than 100 European football clubs affected by the pandemic are seeking access to a new multibillion-euro loan fund set up by UEFA, according to people familiar with the matter.

The teams have indicated an initial request to borrow 2 billion euros (S $ 3.13 billion) from the fund being prepared by the European sports governing body, as they seek to repair the financial damage caused by the Covid-19 crisis, people said.

The money will initially be used to settle unpaid transfer deals, helping smaller European clubs that are more dependent on player sales for their income, according to people, who asked not to be identified while discussing confidential information.

UEFA and the European Club Association, which represent teams from the region, are putting the finishing touches on the project. It comes in response to European clubs having lost around € 9 billion in revenue due to stadium closures and shortened seasons during the pandemic.

The loan facility is part of a three-pronged stimulus strategy offered by UEFA, Bloomberg News reported in August. The continental governing body also wants to create an emergency fund to guard against future crises and establish new rules on financial fair play.

It is in the process of deciding on the bank or banks which will participate in the financing of the project, under which loans will be guaranteed on the broadcasting revenues of European competitions. Teams that access it should be offered a lower interest rate than that available in the commercial lending market. Candidates will be assessed on financial and sporting parameters.

Representatives of ECA and UEFA could not immediately be reached for comment.

Tensions are high in European football after an unsuccessful attempt earlier this year by a group of the region’s biggest clubs to form a breakaway Super League. While this plan was quickly scrapped in the face of fierce opposition from supporters and politicians, many top teams are in desperate need of a financial boost.

“Everyone is trying to find a different way to raise money,” said Adam Sommerfeld, managing partner at sports consultancy firm Certus Capital Partners.