Gerbrands sees ‘a difficult route’ for PSV to grow towards Ajax Football

It was also discussed how PSV wants to get closer to Ajax in the coming years. Since the Amsterdam club dropped the salary ceiling in 2018, the financial gap with the Eindhoven club has grown enormously. PSV’s player budget doesn’t even come close anymore. In Eindhoven, they also do not dare to include income from Champions League football in the budget, as does happen in Amsterdam. “We will only dare to do so if the Netherlands is entitled to two Champions League places”, according to PSV general manager Toon Gerbrands.

Now PSV is trying to be very smart and gradually grow closer to the number 1 in the Netherlands. “If you play in the first two every season, you can also become champion once. But it is a difficult route,” Gerbrands stated that they still talk about winning the national title in Eindhoven every year.

After that, it was mainly about the figures for the corona year. The larger clubs, which loyally contributed money at the start of the pandemic to keep the smaller clubs alive, have themselves been found to be the hardest hit. For example, playing almost a whole season without an audience cost PSV 24 million euros in turnover. Thanks to the support of the government and sponsors and season ticket holders, who did not claim money back because they could not attend matches, the net loss was limited to 8 million euros.

But PSV also suffered a financial blow on the football side. In order to balance the budget, the Eindhoven club has to sell players with a substantial profit every season. Trading Jeroen Zoet, Jorrit Hendrix and Sam Lammers could not prevent the club from suffering a loss of 21 million euros in that position. A major transfer for June 1 was not forthcoming this summer. These were only established afterwards and count towards the current financial year. PSV was able to absorb that loss by calling on its shareholders’ equity. As a result, equity fell from 40 million euros to 17 million euros.

Gerbrands announced that the proceeds of the summer transfers will be used to replenish that equity. That is also necessary, because the club needs income from transfers to balance the budget. That remains a vulnerable factor. With players like Noni Madueke, Ibrahim Sangaré and Cody Gakpo, things will be fine in the coming years. But after that, the academy will have to supply new talents.

New partner fund of 30 million euros

PSV will announce the establishment of a new partner fund before the end of the year, in which at least EUR 30 million has been deposited. It concerns a subordinated loan without control and security. Billionaire Robert van der Wallen, also chairman of the supervisory board of PSV, publicized that plan in the spring. He then stated that the target amount was 50 million euros.

However, PSV does not think it needs 20 million euros immediately. Exactly what the Eindhoven club will use the capital injection of 30 million for will only be known later. In the spring there were still investments in the area surrounding the stadium.

In the spring, PSV first looked at the advantages of an IPO or going into business with a wealthy owner. Those two options failed. The Eindhoven club chose to set up a second partner fund. The first partner fund in the form of a subordinated loan also provided the club with 30 million euros. The club will soon have 60 million euros outstanding in arrears.

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Gerbrands sees ‘a difficult route’ for PSV to grow towards Ajax Football
Source link Gerbrands sees ‘a difficult route’ for PSV to grow towards Ajax Football

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