Kaka & Cristiano Rolando pledged as collateral?

Some of you might have heard of this new item already on financial papers. Marca and As didnt seem to cover it in detail, as one would have expected. The story goes something like this.

About 2 years ago, Real Madrid took a loan of €76 million from Caja Madrid one of the Banks of Bankia group to finance the purchase of Cristiano Ronaldo and the Brazilan Ricardo Kaka together for about €160 million euros. The financial situation in Spain has only worsened since then leading to the bankruptcy of many Spanish banks. This past week, crisis has finally hit home with Bankia Group.

Bankia asked for help from European Central Bank (ECB) for an urgent injection of funds to keep the bank's Credit to reserve ration above the safe thresholds. As ECB is not a money printing machine that queues up orders and delivers freshly printed euro bills, they asked Bankia for a guarantee. Bankia submitted the loan of €76mil that they gave to Real Madrid as the collateral.

What does this mean? This means if Bankia fail to repay ECB and were to go bankrupt(unlikely), Real Madrid is liable to repay the loan. In the hypothetical case of Real Madrid not being able to repay the loan or meet the conditions of ECB, we end up with a weird situation on hand. Kaka & Cristiano Ronaldo could be 'seized' by the ECB just like a house or property. But obviously we are talking people, who probably have no idea of what this means or why this is happening.

Let us ignore the worst case scenario, because the chances of it happening are very slim. What really worries me about this is are the following:

1. How many other clubs are in similar situation with other banks?
2. What will happen if the economy in Spain continues to deteriorate and more banks get into precarious position vis-a-vis their CRR and need the support of ECB to survive?

For #1 I am sure there are more such cases, but may not be of the same magnitude but teams like Barcelona, Zaragoza, Valencia etc. have huge debts on their books and some if not most of it must be from banks. El Pais reports that Real Madrid took a similar loan from Banco Santander to make the two deals. This means Real Madrid signed the two players worth 160 million euros with almost zero money from their pocket. The report also goes on to add that Real Madrid is supposed to pay the principal in three installments in June 2012,2013 & 2014.

It is evident that Spanish football clubs are deeply entwined with banks, while this is not a novelty by any means and it is the case in other countries with the top level football leagues, the level of leverage seems to be very high and that is never a good news even when the economy is healthy.

As for #2, this could get real ugly very quickly if the situation worsens. As more banks declare bankruptcy and/or seek the protection of ECB or Banco de España, more clubs and in turn players might end up on the books of these central banks as collateral, assets etc..

All this left me wondering: Why do banks lend huge sums of money to clubs for signing new players?
Agreed that Real Madrid and Barcelona generate a lot of revenue, but still financing deals like this where the club is not even putting 20-30% of the total worth of the deal? RM's revenues this year were ~ 450million(not profit, just revenue), so 2 years ago let us assume that is in the 300+ range. This means Caja Madrid and Banco Santander approved a total of about 160 million in loans which is almost 50% of the revenue generated by the loanee here. I wonder what will happen should Banco Santander need funds and they put their loan with RM as collateral. I am not a financial expert by any means but this seems like a recipe for disaster.

I just hope that this was a thing of the past and banks dont do it anymore.

Going on a tangent here, in the same week we saw the transfer of Santi Cazorla, an iconic player at Villarreal to Málaga for about 20 million euros in cash. There was a lot of disappointment and anger among the fans of the Yellow Submarine. The club president reasoned that this sale is to keep generate enough funds to keep the rest of the stars of the team and be on a good financial footing in the next few years when he expects the financial troubles in Spain and La Liga even worse.

If more presidents of football clubs in Spain think on the lines as Mr. Roig does, we might be able to avoid situations like this in the future.

To reiterate, none of big banks of Spain are in bankruptcy trouble, however they could struggle to keep the CRR above the thresholds if the economic situation deteriorates further.

La Lambretta Radio: La Liga Bilingual Podcast #8

La Tertulia guests today: Mix Master Emcee, Edu aka @lalambretta, Writer extraordinaire from elblaugrana.com, Inma aka @inmazv, Ravi aka @aupasubmarino from Seattle via India, el Colchonero y cantador from @thisisatleti and @estoesatleti podcasts, Ricky, and yours truly, Forza Futbol's very own, Elisa, debate and discuss Spanish football!!


Some of today's highlights:

o Does Quique v Forlan remind us of Pellegrini v Riquelme?
o Is Málaga the Manchester City of Primera La Liga?
o Is Valencia's Vicente the misunderstood genio or a rebel without a cause?
o Is Bojan due for a transfer to a club with less pressure?

Plus much, much more.


A great way to learn Spanish or English on the topics we know and love!


Listen below, on itunes, ivoox or here

Ir a descargar

La Lambretta Radio: La Liga Bilingual Podcast #7

Roundtable guests today: The man at the controls, Miami Sound Machine aka Edu, Real Valladolid fan boy aka Eugenio, and La Jefa aka resident Malagueña, Inma, from La Lambretta Radio de España. La Lambrettinos are joined by Villarreal groguet Ravi aka @aupasubmarino now sleepless in Seattle, el Juez Jose aka Sportinguista Judge Joe, living in Madrid, and yours truly, Forza Futbol's very own, Elisa, to debate and discuss Spanish football.


Some of today's highlights:

o Saturday's relegation battles: where Malaga rocked Atletico, Racing striked back, Getafe showed they are not dead, and Sporting brought Depor to tears.
o We said adios to Almeria and Hercules.
o We pondered whether Xabi Prieto is a one club man?
o And we consoled Ravi as he recalled the Europa League match.

Plus much, much more.


A great way to learn Spanish or English on the topics we know and love!


Listen below, on itunes, ivoox or here.


Ir a descargar

The Trapdoor Is Opening

After my last article on the promotion race in La Liga Adelante, I decided to have a closer look at the Primera Division relegation battle.

With just four rounds of fixtures left to play, the relegation picture is still somewhat unclear. While Almeria are certainly going to be playing in the Segunda next season, the other two positions are looking like they might not be decided until probably the final round of fixtures.

Almeria's 0-1 reverse at home to Sevilla, coupled with wins for Racing, Malaga, Real Sociedad, Real Zaragoza and Osasuna has left them 12 points adrift of Osasuna and Deportivo with just four games to go. They do have superior head-to-head records against both clubs.

The biggest shocks of the weekend were Zaragoza's 3-2 win at the Bernabeu, and Real Sociedad's come-from-behind 2-1 win at Anoeta against Champions Barcelona, both of which occurred on Saturday night. As an aside, it is the first time both Real and Barca have lost in the same round of games since the weekend of 16/17 May 2009.

Malaga's victory came at home to fellow strugglers Hercules, which has now left the latter in serious trouble. They could get cut adrift next week if they don't get three points from their match against Racing Santander. The side from Alicante are five points away from safety, and are more than likely going to join Almeria in the Segunda next season. There are a few fixtures between those fighting for their Liga lives next week. In addition to Hercules v Racing, Getafe can relegate Almeria when the two teams meet in Madrid, and Zaragoza will hope to follow up their superb victory in the capital when they entertain Osasuna.

In total, there are probably seven teams in danger of joining Almeria to go down. Racing Santander are not 100% safe in 13th. They currently have 40 points. An argument could be made that as far up the league as Sporting Gijon are still in danger. Sporting currently sit in tenth with 42 points, but if results go against them in round 35, they could be pulled back down into the mire. Levante, one place and one point better off, should be safe now.

My predicition, though, is that it will be Hercules, along with one of Osasuna or Getafe that join Almeria in the bottom three after the 38th game has finished.

FORZA FUTBOL on La Lambretta Radio - Spanish Football Bilingual Podcast no 4

Today, Edu and La Jefa Inma Zaragoza from La Lambretta Radio, Villarreal fan Ravi from Seattle, and yours truly Mando AND Elisa talk about the following topics:

o El Clásico: Mou's and Pep's tactics
o Malaga's recent win and the return of Julio Baptista
o Why players like Baptista and Reyes need a little TLC?
o Our relegation picks revisited

and much more.

A great way to learn Spanish or English on the topics we love!

Listen below, on itunes, ivoox or here.

Ir a descargar

FORZA FUTBOL on LaLambrettaRadio Bilingual La Liga Podcast no 1a & 1b

We had the pleasure of doing a LIVE bilingual Internet Radio show on La Liga today with our friend Edu Pérez Suárez from La Lambretta Radio.

Topics covered:

o Live commentary on the March 20th La Liga early fixtures of Jornada 29
o Chatting about the historic potential El Clásico guantlet - 4 games in 3 weeks
o Discussing the exciting relegation battle that covers half the La Liga table.

The podcast is for English learners and Spanish learners. We hope to do more of this including roundtables in the near future.


You can also find LaLambrettaRadio and our bilingual podcasts at their site and on itunes. Enjoy!

PART 1~
Ir a descargar

PART 2~
Ir a descargar

P.S.

Some of the Lambrettinas having a great time at the Malaga game. I think the sheik with the suitcase has some influence over the players :P.





Holy Crap the Sheik made the big time on El Dia Despues! Awesome!

Week 29: Heroes in the fight for survival

Duda, Malaga

Hercules' Farinos, Malaga's Duda and Almeria's Albert Crusat have the power to change the fortune of their relegation threatened sides this weekend and should be seriously considered as hot prospects for any fantasy football manager.

Laurence "Johnson" Alexander, looking at La Liga through the fantasy football lens. Author of Fantasy Football: La Liga Blog

As we approach the business end of the season, each jornada feels harder to predict. Injuries are mounting up, the intensity is rising and form is oscillating wildly. This weekend is characterised by a host of tough match - ups which feel increasingly difficult to predict.

Naturally the fantasy footballer manager is looking for as much certainty as possible but at the moment it's all becoming a little hazy - especially at the foot of the table. Thankfully, through the stats and figures that the game throws up we can take a close look at who's really making a difference. Here's three who have huge games this weekend: the fate of their sides weighs heavily on their shoulders.

Farinos, Hercules

FARINOS, Hercules, 19th

Hercules v Osasuna is a massive tie this weekend. With some good results, Osasuna have been easing away from the relegation places, but still remain patchy away from home. Hercules desperately need some form. The key man for this match-up has to be Hercules' central midfield man Farinos. Since his goalscoring appearance in week 23, he has been scoring steadily in Fantasy Football, even as his side has struggled.

He's been instrumental in their best work going forward. He has 10 successful crosses, 2 assists and a goal from 6 games. He has that crucial fantasy ability of scoring well without shooting. Before Farinos Drenthe was the key to Hercules' success. The flying dutchman is back from injury but since his spat with the club he's barely scored a fantasy point. Farinos has taken on the creative resonsibility since Royston has gone missing and the home side will need a big game from him to get some much needed points.


DUDA, Malaga, 20th

Mauricio Pellegrino showed that it was worthwhile rolling over to Real at the Bernabaeu in week 27 as his side saved themselves to register a vital win at Real Sociedad last weekend. Duda returned to the first team after missing the last 6 games and was instrumental in their victory. He was third in the fantasy football scoring charts behind Benzema and Aguero with his match-winning performance and his shots and crosses showed that he dominated the game in the final third for Malaga.

Duda is the top averaging midfielder with just under 10 points: more than Di Maria, Ozil and the rest, and is currently the 3rd most expensive player in the game behind Messi and Ronaldo and just ahead of Aguero and Benzema. This weekend they face 5th placed Espanyol at home and it will be up to Duda to unlatch a defence which has lost some of its steely resolve in recent weeks. His skill and understanding with striker Rondon give Malaga every hope of believing they can win and begin to dream that they can escape relegation.

Crusat, Almeria

ALBERT CRUSAT, Almeria, 18th

Almeria have the old cliche of the relegation 6 pointer at Sporting Gijon. Gijon are three points ahead in 17th. Argentinian wunderkind, Pablo Piatti has been Almeria's best attacking threat this season but he is carrying a knock and we don't know when he'll return. In his place, forward Crusat has rose to eminence in the last few games. In the last three he has two goals, an assist and plenty of shots and crosses, averaging 13.3 points. The Andalusians will be relying on Crusat to keep up his form at Gijon to keep their fight for survival alive.

Best of Jornada 22 in La Liga

Time to pay homage to those players that really impressed this past week.


GOAL:

Just for that awesome save that was just out of this world, My hat goes off to Vicente Guaita from Valencia. Incredible piece of skill and timing against Hercules in the derby Valenciano. What vision! What reflexes! What a stretch! Mystifying.


DEFENSE:

Kudos go to a player out of position (Eliseu), an over the hill veteran (Ballasteros) and one who stepped up to the captaincy (Fernando Navarro).

Normally a left winger, Eliseu was asked to play at Left Back for Pellegrini in the Andaluz derby against Sevilla. That said, he was solid and handled his defensive and offensive duties with ease. Shame the finishing by the anchovies was lacking.

Big, thick, over the hill, these are some of the names often heard by Sergio Ballasteros, but this week the central defender had a massive game (no pun intended). He was part of the five man defensive wall, that coach Luis Garcia played at the back against the red hot Villarreal in El Madrigal. The Granotes surprised the Yellow Submarines and Ballasteros did the same. Quality display.

Fernando Navarro was one of the few shining stars for Sevilla in the Andaluz derby. He came through with some critical tackles to halt the Malaga attack and the Euro champion let his actions speak, as he allowed very little goal penetration by the opposing side.


MIDFIELD:

Brasilian superstar, Rikki Kaka had one of his best games with Los Merengues this season. He played with calmness, stealth and velocity. He opened the flood gates, with the opening goal against Real Sociedad at the Bernabeu. The best man on the pitch without a doubt.

After a poor run of form and a consecutive string of losses, Getafe came back to life and trounced Deportivo La Coruña. The one man who was involved in nearly every single play was Jaime Gavilan. Incredible game.

Solid in the center and even bagging a goal, Hernan Bernardello has been a key player for Almería over the past few games. The ex-Newell's hard man has really made the difference for the little Andalusian club. He was instrumental in holding the win against a very difficult Espanyol.

The trickster, el travieso Iker Muniain has been playing out of his skin. The 17 year old enganche received his first call up tothe Spain U-21s and was eager to show Coach Milla that this was not a fluke. Against Sporting Gijon, he started on the wings, but moved into the middle and became the sublime playmaker. I love watching this kid grow and fulfill his potential at Athletic, in front of our very eyes. He is the real deal. It was fantastic to see him play with Ander and Javi Mar in the U-21s this week, as well.


UPFRONT


Messi, Messi, Messi - hat trick king extraordinaire now tied with Cristiano Ronaldo for the pichichi. He ran rampage over Atletico de Madrid with ease. Doesn't he link up so well with Alves, El Guaje Villa and Pedro?

Cristiano Ronaldo was fit to be tied. He is obsessed over that pichichi trophy, so he netted two against Real Sociedad. Incredible drive and skills.

Finally Getafe's coach Michel plays two strikers upfront and brings back Adrian Colunga into the starting eleven. Well, the ex-Recreativo striker proved his worth by scoring a brace and spurring the team on to win in the process. Colunga started off the season slow and nervy, but it looks like the mighty mite has finally found his groove. Stupendous game.


GUAITA (VALENCIA); ELISEU (MALAGA), BALLASTEROS (LEVANTE), FERNANDO NAVARRO (SEVILLA); KAKA (REAL MADRID), GAVILAN (GETAFE), BERNARDELLO (ALMERIA), MUNIAIN (ATHLETIC); MESSI (BARCELONA), RONALDO (REAL MADRID), COLUNGA (GETAFE)

Malaga hires Pellegrini

I really can´t say that I am at all surprised by the firing of Jesualdo Ferreira as Malaga´s coach. It wasn´t even that expectations weren´t being met. Yes, this is much he same Malaga that barely escaped relegation last year but there was an immense turnover, and it was apparent that the club had overnight become a real player in Spanish football. While most clubs in Spain were merely shifting salaries around and coming close to a point of equilibrium, Malaga had shifted their preferred modus operandi, signing loanees and free transfers, and instead were quietly signing players like Eliseu, Rondón and Sebastián Fernandez who were a cut above their usual mix. They even unearthed a real gem in former Arsenal winger Quincy Owusu-Abeye.

In a different time, the young Ghanaian might have become the answer in a red and white Gunner shirt, stepping into the left wing at the Emirates and giving the country of his birth (Holland) the pace and creativity it lacks on the opposite side to Arjen Robben. Instead he switched his allegiances after youth-team success and played for Ghana where his parents were born. His club fortunes took an even stranger twist. After several incidents that poisoned his Arsenal career, the youngster signed for Spartak Moscow but rather than cement his place in Russia it meant an extended journey of clubs that accepted his services on-loan: Celta de Vigo in Spain and Portsmouth, Birmingham, and Cardiff Cities in the English leagues. His star had fallen so far that he was signed by Al-Saad in Qatar, a step that most footballers reserve until their last few days in football, but he was quickly brought over to Malaga.

And yet, just as he was being brought over, the club invested in little known Ferreira whose wealth of experience never reached outside of Portugal. Yes, he had guided Benfica and FC Porto, but the Spanish League is an entirely different animal and for a club with illusions of grandeur like Malaga, they couldn't have picked a more unqualified coach. He was out of his depth, out of his acceptable level of communication and it was evident that his players didn't what to make of the conservative tactician.

So instead the club have given the reigns of their entire footballing operation to ex-Real Madrid coach Manuel Pellegrini. It was obvious that he wanted a bigger club to stake his post merengue career to, but this maybe the right fit for the Chilean.

Malaga want to be stylish and attack minded. They want someone with the leadership ability and experience in Spain, and they want to build something long-lasting in the Primera. They see what Almeria and Sporting have done recently, and what Villarreal have doe over the last decade is remarkable. It is no accident that one of the architects of the submarino amarillo miracle has been chosen for the Malaga job. Good luck to Pellegrini. He'll need it.