Page 46 - TURKRptJul19

8.1.4 NPLs
Reports suggest Turkish companies have requested that banks restructure at least $30bn of loans.
Turkish football clubs, banks still working on debt restructuring. Turkey’s Banks’ Association (TBB) has said that the restructuring of the debts of the country’s top football clubs is moving forward. The association did not provide any figures, but it estimated that the country’s top four clubs -- Fenerbahce, Galayasaray, Besiktas and Trabzonspor -- alone have more than TRY10bn (€1.5bn) in debt. The football clubs’ debts will not be erased, the association said in a statement, adding that the financial liabilities subject to restructuring will be matured for a total of five years. “No action will be taken beyond market norms, such as transferring the debts to a bank. Each bank is responsible for managing its own debt.” Just like any other business in Turkey, the country’s football clubs suffer from a weak currency. They have taken out large amount of loans from banks and spent huge on signing foreign players, mostly in euro. But the clubs’ revenues are in the local currency. When the currency depreciated, -the lira has lost some 40% of its value against the major currencies since the start of last year- they found themselves in financial troubles.
Deloitte’s 28th Annual Review of Football Finance, released in May this year, showed that Turkey’s Super League generated €731mn of revenue in the 2017-2018 season, up from €701mn in the previous season. Turkish football clubs’ revenues included broadcast rights deals (€376mn), sponsorship (€242mn) and matchday revenues (€74mn). Another €39mn
46 TURKEY Country Report July 2019 www.intellinews.com