Club news

TV INCOMES: THE QUEST FOR DEPOR’S MONEY

18 Feb 2013
Deportivo finally got the €10.6 million from the TV incomes of the present season, but the club is also hoping to rescue the €14 million that were sequestered in 2012. Another €1.4 million were already cashed, plus the ticket incomes of the game Vs. Real Madrid.

Little by little the administration figure of Deportivo is recovering the financial resources of the club. Since the club was declared in bankruptcy at the middle of January one of the main targets was to rescue the money coming from the TV contract and that was part of an embargo settled by the Spanish Treasury.

Last year the Treasury sequestered the incomes of the club as Deportivo weren’t fulfilling the payments according to a previous agreement. In this way, in October of 2012, the government was taken away €14 million from Mediapro (Mediaproducción SA), the company to which Deportivo sold their TV rights. This embargo was precisely the reason why the Galician club had to request the protection from the bankruptcy law or Ley Concusal.

The following payment from Mediapro was scheduled for the beginning of January (€10.6 million); that’s why one of the first measures of judge Zulema Gento after the club entered into administration was to lift the embargo. In a shocking move for the press the Spanish Treasury appealed the decision, which awoke comments that the government was trying to play hard against Depor, just when they more flexible with other clubs.

In the end judge Gento rejected the appeal and, on Friday, Mediapro ended depositing the money in the bank account of the court, and from there the judge will probably transfer the money to the club. This fresh money will bring some life to Deportivo in order to pay the bills, which in the end is the purpose of the administration figure: the survival of Deportivo.

The next step is to try to recover the money that was sequestered in October (€14 million). Lendoiro complained in past months that the Treasury got the money and that they never informed the club of what happened with it. But in this case judge Gento won’t lift the embargo, at least not until hearing both parties. It is expected that both sides will present their positions during this week and then the judge will decide if that money should be returned to the club or not.

OTHER CASES
The Spanish Treasury had other embargos over the club, including one over the ticket sales and the exploitation of other business. Two weeks ago judge Gento lifted an embargo over €1.4 million. This money was already cashed by the club and was already used in order to pay the wages of Fabril’s youngsters and the first team’s members.

It was commented in the papers of A Coruña that some players from Depor B were already thinking in living due to the lack of payment, but their situation was already solved, while the players of the first team were paid on last Friday, which could be an incentive in the attempt to fix the current situation of the team in the league competition.

Another embargo that was lifted this week is the selling of tickets for the match against Real Madrid; normally Deportivo could end collecting €2 million with one of the most profitable games on the league season.  The ticket prices for the no socios are between the €56 and €96.

ARCHIVE NEWS FEB/13

ZAPPING

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