Panathinaikos set to be debt free by 2020
Panathinaikos set to become debt free by 2020 for the first time in years after fresh investment from Giannis Alafouzos and new ERT deal.
The licencing issue now appears to be well and truly sorted for Panathinaikos and the club will begin next season’s edition of the Greek Super League without a point deficit, unlike what happened this season.
However, the good news does not stop there. The club aims to be completely debt free in 2020. In fact, this is the club’s main objective moving forward. Debt has plagued the Athenian giants for some time and the off-field dramas led to the darkest times the club has ever experienced on the pitch.
Managing the debt is not only dependent upon things such as cash flow, sponsorship revenues, TV rights deals, sales of players, and ticket sales on game day. These factors can all play a helping role, however, significant investment injections are needed and this is where Giannis Alafouzos comes into play. According to recent reports, the majority shareholder is set to contribute 15 million euros by 2020 in order to totally alleviate the debt. If this happens, it would mean Alafouzos has contributed 45 million Euro in the last two years. A far cry from the dark days of 2017, when he stopped any form of investment.
Being debt free would also assist Alafouzos in making the club a more attractive proposition for potential new investors to takeover. Furthermore, the players can remain comfortable knowing they will be paid and can solely focus on performance. Giorgos Donis and Nikos Dabizas can keep the squad’s brightest young talent and also look to strengthen with more freedom in the transfer market.
Meanwhile, in other news, Panathinaikos are set to seal a ‘super deal’ with ERT, who will continue to broadcast their home matches in the 2019/20 season. ERT will pay the Greens 4.2 million euros for the rights and this will be part of the revenue that would lead to the desired zeroing of the club’s debts.