Turkey’s banking association in talks to restructure debts of football clubs

ISTANBUL

Turkey’s Football Federation (TFF) Chairman Yıldırım Demirören and Turkish Banking Association (TBB) Chairman Hüseyin Aydın

Turkey’s banking association is in talks with the chairmen of the country’s top football clubs to restructure their mounting debts, state broadcaster TRT Spor said on Jan. 7.

The total debt of the “Big Four” clubs in Turkey’s Super Lig is more than 10 billion lira ($1.87 billion), exacerbated by worsening domestic and international performances.

Turkey’s Football Federation (TFF) Chairman Yıldırım Demirören, Turkish Banking Association (TBB) Chairman Hüseyin Aydın and club chairmen met at Ziraat Bank headquarters to discuss terms of the restructuring, TRT Spor said.

It said the clubs were asked to present their income and expense reports to the TBB by the end of January.

“The TBB and consortium partners, which will examine the reports, will set up a separate plan for each club. The proposal to split the debts into five installments will also be evaluated,” TRT Spor said.

TBB said in a statement on Jan. 7 that each bank will continue to manage risks itself as the whole debt will not be transferred to any single bank. "It is also out of question to write off any debt or price it in violation of market norms."

Shares in the clubs surged following the reports of the restructuring.

Shares of Istanbul giants Fenerbahçe, Galatasaray and Beşiktaş rose more than 5 percent, while Trabzonspor shares were up 4 percent.

The TFF and TBB chairman are expected to make a statement on the restructuring deal in a television interview later on Jan. 7