The arrival of Codere as a new sponsor of River Plate in Argentina would represent a strong brand positioning strategy, considering that in 2020 the company reported losses of €236.6 million due to the confinement, in particular due to the long closure of Argentina, so that its adjusted EBITDA was €22.5 million for 2020. In Argentina, Codere owns 13 bingo halls, most of them in the area called Greater Buenos Aires, right next to the capital city.
The company would not only invest in River’s jersey, but it already did so in the Real Madrid shirt in 2018 for €3.2 million a year until 2021 inclusive, and also announced in February of this year its place in the shirt of the "Rayados" from Monterrey, in Mexico.
This strategy of brand positioning and investment within the scope of this market is justified in that, according to data from the company itself, its online betting division grew 19.3% and 59% in the last quarter and was the one with the highest income generated in the year, about €71.3 million.
What is striking about these expenditures is that they coincide with the reduction in the rating of its assets that S&P Ratings reported this week. According to the rating agency's estimates, liquidity fell from €85.6 million in January to €70 million in February, of which €25 million is actually working capital - and therefore not available. In addition, the company has to pay debt interest for €13.4 million this month and for €17 million more next month, in addition to having to pay €5 million to the Italian treasury.
Source: GMB / La Política Online
