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ADMINISTRATION: THE CLUB IS FEASIBLE

20 Mar 2013
The final report of Deportivo’s administrators is saying that the indebtedness of the club is €156 million. It also blames Lendoiro for the financial crisis that’s affecting the club, beyond this they believe that the club is feasible.

AD CYREX finally presented on Monday the report to judge Rafael García Pérez about the state of Deportivo. The main thing is that they agree that the club is feasible, which means that they won’t request the liquidation of the entity, something highly feared by the fans, though they emphasize the necessity of "A radical change in the way to conceive and execute both the strategy and the management of the entity."

The report presents the idea that Deportivo have five strong points that convert the entity into a feasible corporation: 1- a faithful group of fans that have supported the club for more than 100 years, 2- more than 20,000 socios, 3- a large territorial support not limited to the city of A Coruña, 4- a well-known brand in Galicia, and finally 5- the infrastructure to support the participation at Primera División.

Francisco Prada and Julio Fernández Maestre –the club’s administrators- are convinced that the problem is old and believe that the club should have requested to go into administration in 2006 and not six years later; once again they are pointing to Lendoiro as the main responsible for the situation. They believe that Deportivo’s president didn’t make the right decisions and also that his wages are illegal.

The report clearly point out to the embargoes made by the Spanish Treasury and the Tax Agency [AEAT] as the reason that explains the current crisis, and the embargos were caused for what is referred as the “real reason for insolvency”, and this factor is the management mode totally opposed to the reality, assuming expenses and investments in many aspects ( professional players, agents, club’s rights and others issues, subsidiaries, promotion of youth teams, installations) for amounts quite remote from the economic possibilities of the society.

CYREX also lists the related business of the club -Iris, Depor Hosteleria, Deporclinica, Depor Sport, Depor Tienda and RC Medios- and informs that there are some irregularities in the way they valued these companies, but at the same time believe that these are minor problems as the differences are small. But one of the most scary issues is that they calculate a difference of €82.6 million between the debt of the club and the active mass, which means that the capital is only covering the 47.2% of the indebtedness.

The worst accusation made by CYREX is to point to Lendoiro and the board of directors for making accounting tricks, like not converting the long-term debt into short-term obligations, reason why the financial reports always presented a positive scenario, which turned to be fictitious. Now, there are ten days to present challenges against this report and then judge Rafael García Pérez will make a final decision if this information will be accepted or not.  In resume the administration believes in the future of the club, but only if Lendoiro and his advisors are removed.

On that same Monday, the Tax Agency [AEAT] confirmed that Spanish clubs owe €690.4 million in terms of unpaid taxes, an amount that corresponds to the calculations made by November of 2012. It’s a lot of money, but at least it’s a decrease compared to the €700 million estimated ten months before. The AEAT also confirmed that they are open to negotiate new deadlines with the football clubs as long as these entities are declared feasible. The negotiation of Deportivo’s debt with the Treasury is a key aspect in the administration process of the club.

THE DEBT OF DEPORTIVO
The report of CYREX also confirms the previous report in which it was established that the indebtedness of the club is €156 million (€156.341.893). The three main creditors are the Spanish Treasury (€93.7 million), plus banks Novagalicia (€26.54 million) and Banco Gallego (€9.49 million)

An interesting fact is the list of the debt had with the current players: Zé Castro (€523.821), Aranzubia (€515.940), Riki (€428.308), Bruno Gama (€397.530), Lux (€361.950), Valerón (€283.659), Salomão (€274.990), Ayoze (€241.145), Evaldo (€214.098), Abel Aguilar (€205.919), Nélson Oliveira (€201.930), Jesús Vázquez (€199.807), Marchena (€198.459), Manuel Pablo (€179.159), Pizzi (€174.985), Aythami (€148.630), André Santos (€148.236), Álex (€145.460), Camuñas (€137.207), Laure (€129.478), Juan Domínguez (€124.641), Sílvio (€17,126 euros) & Assunção (€5.628) 

There are also debts with the players from Depor B, though the amounts are minimal: José Manuel (€1,179.40), Adriá Gallego (€637.04), Víctor Díaz (€556.57), Iván Garrido (€533.34), Pablo Insua (€479.11), Álvaro Lemos (€388.89), Marcos Caridad (€303.03), Uxío Marcos (252.53) & Luis Fernández (€185.19). The report says that these debts are part of December’s wages.

Debts with former players: Bodipo (€721.982), Guardado (€579.45), Colotto (€448.308), De Guzmán (€266.233), Saúl (€220,152), Pablo Álvarez (€205.583), Xisco (€104.534) & Borja Fernández (€54,308.11). There are also reported debts with former coach Miguel Ángel Lotina (€360.000), players’ agent Miguel Santos (€443.869) the LFP (€2.99 millions), the RFEF (€237.372), plus football clubs Real Betis (€295.000), RCD Mallorca (€334.030), Nacional Montevideo (€959.596), Defensor (€412.427), Estudiantes (€111.450) and Atlas (€161.284).

ARCHIVE NEWS MARCH/13

ZAPPING

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