Pandemic driving expensive bond issuances as clubs like Schalke 04 begin to feel the heat

Schalke 04 and Werder Bremen have recently launched bonds in a sign they are struggling to secure other, cheaper financing solutions.

Bonds are generally more expensive than the average loan and often clubs are forced to issue new bonds to repay existing ones.

Credit structurer explains the inflexibleness of bond repayment tends to put off clubs who prefer being able to restructure in line with up- or downticks in revenue.

Inter Milan's recent difficulty in renegotiating bonds worth €300 million serve as an example of the pitfalls to avoid.