$1.5 Billion Spanish Soccer Giant Face Major $42 Million Financial Trouble Amid Crypto Downturn

For a club that reached two soccer Champions League finals in three years, in 2014 and 2016, Atletico Madrid doesn’t seem to have the same mojo anymore. They were the rival contenders to Real Madrid and Barcelona in the Spanish League. However, the situation looks bleak for the club. From a financial point of view, the club is facing a problem. 

As the cryptocurrency is at a downfall, according to Mundo Deportivo, Atletico Madrid faces the risk of losing their sponsor, WhaleFin (a company that deals with cryptocurrencies).

Considering they lost Joao Felix and Matheus Cunha, the team suffered from losing valuable players because of their financial struggles. Therefore, the future looks bleak for the Colchoneros. To make matters worse, club manager, Diego Simeone, decided not to extend his contract beyond 2024. 

Atletico Madrid faces muddy financial problems

Currently, the club languishes in fourth and was knocked out of the European competition, as well as the Spanish Cup. With no clear objectives in front, the financial issues are a pain in the back. Club President Enrique Cerezo discussed how the club needed to inject $42 million to balance its accounts. They received $53 million from the Cunha deal to Wolverhampton Wanderers, while Felix bagged them $11.7 million. Despite generating lavish transfer fees, the club needs $30 million to balance it.

After these issues, the sponsors took a step back from funding the club anymore. Moreover, the cryptocurrency markets faced a downfall of up to 70% in recent months. So how does it concern Atletico Madrid and WhaleFin?

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A cryptocurrency is a digital currency that is an alternative form of payment created using encryption algorithms. Digital ledgers store vital information like transaction records that monitor every payment. So WhaleFin is a company that gave various unique tools to private investors in the purchase and sale of cryptocurrencies. As there was a downfall in cryptocurrencies, WhaleFin ended the club’s sponsorship.

Where does this leave the famous soccer club?

Notably, Atletico Madrid and WhaleFin signed a five-year sponsorship deal for $40 million. But now, things look sketchy. As the club collected its first payment, there is a clause in the contract stating the termination of the deal depending on the state of the cryptocurrency market. As the club’s officials have not dismissed the idea of taking the case to court, they are active in the market to find new sponsors. 

Along with this, they have an astronomical wage budget at the club. Diego Simeone is one of the highest-paid coaches in the world, while top players like Griezmann, Koke, and Oblak earn vast amounts of money. If the club cannot qualify for the Champions League next season, they will risk losing money from that competition. To sum up, the soccer club is in trouble and hopefully can balance its accounts. 

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