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Bank offers soccer star as collateral
Cristiano Ronaldo is the highest-paid player in the world. Now he's also a loan guarantee.
Can you use a person as collateral on a loan? That's what a struggling Spanish bank just did with soccer superstar Cristiano Ronaldo.
The Bankia group of savings banks needs money desperately and has asked the European Central Bank for a loan. Well, the ECB doesn't hand off cash to just anyone, so it asked for some guarantees, Presseurop reports. Bankia offered up Ronaldo and the Brazilian player Kaká, otherwise known as Ricardo Izecson dos Santos Leite.
Where does Bankia get the right to do this? Back when Real Madrid was recruiting the Portuguese Ronaldo, it turned to Bankia to finance the acquisition. Bankia lent the club 76.5 million euros, which helped it get the 100 million euros it needed for Ronaldo and the 60 million for Kaká.
So in the most ridiculous scenario here, the European Central Bank could seize a soccer player if the loan went bad. But according to European newspaper Süddeutsche Zeitung, many things would have to happen first. Bankia would have to become insolvent. Real Madrid would have to default on its loans. And the Spanish government would have to refuse to bail out its soccer team.
All of that is extremely unlikely.
source
...What? Is this even allowed o.O
Cristiano Ronaldo is the highest-paid player in the world. Now he's also a loan guarantee.
Can you use a person as collateral on a loan? That's what a struggling Spanish bank just did with soccer superstar Cristiano Ronaldo.
The Bankia group of savings banks needs money desperately and has asked the European Central Bank for a loan. Well, the ECB doesn't hand off cash to just anyone, so it asked for some guarantees, Presseurop reports. Bankia offered up Ronaldo and the Brazilian player Kaká, otherwise known as Ricardo Izecson dos Santos Leite.
Where does Bankia get the right to do this? Back when Real Madrid was recruiting the Portuguese Ronaldo, it turned to Bankia to finance the acquisition. Bankia lent the club 76.5 million euros, which helped it get the 100 million euros it needed for Ronaldo and the 60 million for Kaká.
So in the most ridiculous scenario here, the European Central Bank could seize a soccer player if the loan went bad. But according to European newspaper Süddeutsche Zeitung, many things would have to happen first. Bankia would have to become insolvent. Real Madrid would have to default on its loans. And the Spanish government would have to refuse to bail out its soccer team.
All of that is extremely unlikely.
source
...What? Is this even allowed o.O