Club news

AT THE EDGE OF ADMINISTRATION

19 Dec 2012
Lendoiro announced on Tuesday that the club is at the edge of administration. That’s the solution to the financial crisis in case of not reaching an agreement with the Treasury within the next days. A final decision before the end of 2012.

President Augusto César Lendoiro addressed the media in an improvised press conference held at the Riazor on Tuesday’s noon. The message was clear: Deportivo La Coruña will go into administration before the end of the year if there's no agreement with the Spanish Treasury within the coming days.  The club is in a difficult situation as the Treasury have sequestered almost all the incomes after Deportivo failed to pay the debt, calculated in the last financial report in €36.99 million (it includes social security).

The president was at the Riazor as he wanted to give the news to the players; they were training behind closed doors. He had a conversation with the players and also with the president of the Players’ Association (AFE), Jorge Rubiales. Later he decided to speak to reporters in order to avoid gossips and misinterpretations for his presence at the stadium. After all, there were rumors during the morning that he was at the Riazor in order to fire Oltra.

Depor’s boss started the press conference explaining what was going on, "I had a meeting with Jorge Rubiales and the players. The intention was to inform the players of the current situation. If in the coming days we don't reach an agreement with the Treasury we will enter into administration. What we want is to pay our full debt. I have no reasons to be optimistic on this regard, but neither to be totally negative.”

"We are pending on an agreement with the Treasury, because we understand that there’s a full agreement with the rest of creditors. We invite them to reach an agreement, which will be good for both sides. It won't be a defeat for the club to enter into administration, but before the end of the year we must make a decision. What we want is to remain as one of the nine Spanish clubs that haven’t passed through the administration figure. We want the same treatment that other Galician clubs in similar situations." He added.

Later Lendoiro explained why he was there, “I am giving this press conference in order to see you all getting the information and avoid misunderstandings. Also, to give the impression that the AFE, Deportivo and all the entities in la liga are trying to find a solution. We are here just to talk of the economic problems. This is the second time in my life that I enter into the changing room. The previous one was when we won the liga title. “The players are tranquil after talking to them and after hearing the opinion of the AFE.”

One of the things emphasized by the president is that the club is viable and also that there won’t be any relegation in case of entering into administration, “There won't be a relegation in case the club goes into administration. It is something that should be clear. The club is feasible. There’s no doubt about it. The incomes are bigger than the expenses. The problems are derived from the debt and the embargo of the Treasury. If not we would be talking of revenues of 8, 9 or 11 million Euros."

“Let’s make numbers: We have, as minimal, eighteen million due to the television rights, seven million for publicity and sponsorship. Then other seven million for the abonos, VIP terraces, which means for the ticket sales; then other three, four or five million for other subjects, as example the money collected from la liga. All of that means between 36, 37 or 40 million Euros without transfers. And from that you have to pay 17 million to the players and the employees and then you have to pay 10 million in other expenses, so we will be earning 8, 10 or 11 million per year. So the club is viable. The problem is related with the embargo of the Treasury and the debt.” He added.

The most surprising thing was that Lendoiro assured that neither the club nor the Treasury have calculated the real amount of the debt with that entity, “We don’t know at Deportivo the exact amount of the debt with the Treasury. We’re talking of a global debt close to €100 million, but after the embargo of the Treasury, and after been unable to make the payments, evidently the debt has raised. But we don’t have anything to hide. Five million of the assurance for the relegation were collected by the Treasury and we don't know what happened with that money. We don’t know what happened with the fourteen million collected to Mediapro a month and a half ago, neither the half a million collected for Filipe Luis through Atlético Madrid. We don’t know what’s happening with that money. Let’s hope they will tell us the real amount of the debt.”

Finally, the president said that to reach an agreement and avoid the administration figure is the best for all the parties involved, “It’s time to reach agreements and see what’s best for each side. In the first place the Treasury should be the first one interested in avoiding the administration figure. It’s also the best for all the creditors of Deportivo. It’s also helpful to keep the good image of the club.”

ARCHIVE NEWS DEC/12

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