Borussia Dortmund CFO says easing restrictions on overdue payables could "harm" market for receivable financing

18 March 2021

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Photo: Alamy The entry of new financiers such as MSD Capital and OLB is a welcome development driving competitiveness in the market, according to Borussia Dortmund CFO Thomas Tress.

As more transfers are paid in instalments clubs are increasingly using receivable financing to equalise cash flows.

This has led to the entry of new financiers such as MSD Capital and OLB, a welcome development driving competitiveness in the market, according to Borussia Dortmund CFO Thomas Tress.

However, UEFA has due to Covid-19 eased the regulations on overdue payables potentially pulling the rug from the otherwise almost risk-free system.

Emil Gjerding Nielson nielson@offthepitch.com

The use of receivable financing has increased significantly over the past few years as more and more transfers are paid in instalments due to the inflation of player prices.  

With that development has come new financiers such as MSD Capital and German bank Oldenburgische Landesbank (OLB) who see potential in the market described as mostly risk-free due to UEFA's heavy penalties if clubs fail to meet their payment deadlines.

You need to balance the cash flows between the selling and the buying side

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