The Argentine club’s initiative seeks to raise US$20 million for infrastructure projects
The River Plate, club tradition of Argentina, announced this Friday (Oct 4, 2024) the creation of the “Club River Plate Financial Trust”. The initiative marks its entry into the Argentine Stock Exchange. With an initial investment of 12 thousand pesos, equivalent to approximately R$67.4, interested parties can purchase shares in the club through a stock broker.
The objective is to raise 20 million dollars, around R$120 million, to invest in the club’s infrastructure. This plan does not transform River Plate into a SAD (Sociedade Anônima Deportiva), a model prohibited by the AFA (Argentine Football Association).
The resources will be allocated to infrastructure projects, including the renovation of the Monumental stadium, improvements to youth stadiums, a multi-sports gym and the club’s university, the River Institute.
The financing strategy adopted by River Plate involves offering advance credit with a guaranteed return in 30 months, adjusted for inflation plus 9% interest. This approach offers an advantageous financing alternative compared to conventional loans.
The investment focuses on improving the club’s infrastructure, without allocating resources for reinforcements in the first team or professional football. The grassroots categories, Olympic sports and the River Institute are the main beneficiaries of this plan.
The initiative comes in a context of tension between the Argentine federal government, which defends private investment in football clubs, and the AFA, which opposes the transformation of clubs into SADs.
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