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Turkish football has hit a financial brick wall. The big clubs are all swimming in debt and the interest rate shock from the summer is now endangering all the major clubs. I'll add a bit of flavour to the podcast we recorded below in this thread but please do listen.
The debt situation was already problematic before the two interest rates hikes last year but with interest rates now at 24%, the costs of financing debt have become simply unsustainable.
Turkish football clubs have to pay significantly more interest than the Central Bank rates (because they aren't exactly credit-worthy organisations).

In the last six months, the interest clubs pay on their massive debts has gone up significantly. The next tweet should scare you.
Beşiktaş: 30%+ on over 1bn TL (up from 18% in May)
Fenerbahçce: 37% long-term, 26% short-term on over 1bn TL (up from 19% and 22% in May)
Galatasaray: Between 15% and 38% on over 600mn TL (up from 14% to 24% in May)

These are only debts to finance orgs.
The clubs aren't making any money so the principal debt is growing even as payments on interest alone explode. The big three made 100 mn TL gross profit between them in H1 (basically Galatasaray CL money). At 30%, combined interest payments could be just shy of 1bn TL this year.
Beşiktaş have stated in their Financial Report that there are "serious concerns over the continuing operations of the club as a going concern". All of the clubs have had to legally declare they are in a situation of "borca batıklık". That means they are in unsustainable debt.
In the podcast, we discuss how the TFF plans might help, what the clubs need to do next (no more star players, youth development, years of pain). In my view, this is a microcosm of the broader Turkish economy.
While everyone was panicking about the impact of FX-denominated debt, we may have overlooked that most Turkish businesses hold Turkish lira debt. The exploding interest rate has left them exposed to unsustainable financing strain. Now it's time for a reckoning.
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