$70.7 million capital increase to strengthen the club | Relief
As soon as the season ends, Atlético Madrid are committed to finding ways to improve the club’s competitiveness in the coming years. After strengthening the commercial part with the help of very influential investors (last year it was Riyad Air, it named the team’s jersey during the season and they just included the almighty Google), the red and white organization announced this Thursday in a statement. What carries out a capital increase of 70.7 million euros.
The Board of Directors, according to a message published on the Atleti website, is calling an extraordinary meeting to approve this injection of money, which, as stated in the first paragraph of the day, will be as follows: “Increase in capital by 3,215,992 euros through the issue of 378,352 new ordinary shares , represented by registered securities belonging to the same class and series as the existing ones, with a par value of EUR 8.5 and an issue premium of EUR 178.60 per share, for a total of EUR 70,789,659.20. , at a price of 187.10 euros per share.”
The meeting will take place on June 24 at 12:00 at the Cívitas Metropolitano. This capital increase is the most pressing issue of the day and its main goal is to find solutions so that the club continues to compete in La Liga and in Europe with the goal of entering the top ten in the UEFA rankings (currently 14th place).
Reason for decision
The board is going to explain that the stadium was built and despite this they did not leave the Champions League. They continue to invest and compete. Other clubs such as Arsenal faced difficulties after building their pitch, but Atléti maintained their goals.
The Council now understands that support of more than €70 million is needed to continue competition. This is not an extension to accept new members, it is only for those who are already there. And it is assumed that it may be incomplete and may be something less than those 70.7. The part that is not subscribed may remain uncovered.
This economic impulse turns out to be very important for the implementation of planned projects. First sports, with more liquidity, then Ciudad Deportiva (although they have CVC support there), which has a budget of about 350 million euros.and this aroused the interest of many groups to join Atleti and become part of the project.
Atlético’s main investment group is part of the Atlético HoldCo group, which brings together the shares of Miguel Angel Gil, Enrique Cerezo and the American Ares group (also investors in Inter Miami). During the pandemic crisis, Ares invested 120 million euros in exchange for Atlético HoldCo shares, which represent just over 70% of the club’s shares. The rest is owned by Israeli investor Quantum Pacific Group, and the rest are minority shareholders with a total stake of about 2%.