Club news

ADMINISTRATION: NEW REPORT FROM THE CLUB

09 Apr 2013
The club presented a financial report to the judge arguing that the indebtedness of Deportivo is €112 million and not the €156.5 million argued by the administrators in their own report. The major part of the difference is related to the debt with the Treasury.

Deportivo are still refuting the financial reports presented by AD CYREX, the company named to administrate the club after entering into administration back in January.  On March 18, AD CYREX presented the final report regarding the accounting of RC Deportivo La Coruña.

The conclusion of the report is that the club is feasible, but it also attacked president Lendoiro and his board of directors as they were accused for been making “accounting tricks” within the last years. The report calculated the indebtedness of the club in €156.5 million, almost 60% more of what the club reported in the balance sheet presented in December.

And the response of the club was to present a “counter report” to the judge that’s managing the administration case of Deportivo; this new report was calculating the debt in €112 million, almost 30% less (€44 million) of what AD CYREX was saying in its final report.

There are 33 differences between the amounts reported by AD CYREX and the ones of the club, the main one is the money owed to the Tax Agency [AEAT] According to AD CYREX, Depor owe €93 million to the Spanish Treasury, but the club argues that they only owe €59 million. The difference is €34 million, an amount that, according to the club, was miscalculated as they aren’t resting yet the previous embargos.

The club’s report also claims that the administrators aren’t properly evaluating the assets of the club. The financial report presented in 2012 by Lendoiro declared assets for €185.15 million, while AD CYREX argue that the real value of the assets should be the half of that amount: €91.07 million.

There are three main differences on this regard. The biggest one is that the club estimates that the value of the spot at Primera is €58.3 million, while the administrators say that the real value is only €20 million. Also, the club valued the rights over the Riazor €17.41 million, while AD CRYEX says that there’s no value over this aspect as the stadium belongs to the city of A Coruña.

A third big difference is the calculation of the first team’s value; the club calculated the value in in €42.2 million, while AD CYREX estimated in in €21.25 million. There are even some curious differences, as example that the club believes that the trophies conquered by Deportivo have a value of €5.5 million according the price of gold in the market, while the administrations say that the value is zero.

This is just a new example of the lack of understanding between the club’s officials and the administrators of the club. Just to remember that  the club’s lawyer, German Rodriguez Conchado, told to reporters at the end of March that AD CRYEX aren’t responding to the interests of the club, but to the interests of the creditors and even denounced that they have been pushed by newspaper La Voz de Galicia.

It’s a conflict that could extend the period of time that the club will spend under the administration figure. Now Judge Rafael García Pérez has to decide whether if he will accept the report of the administrators or if he will pay attention to the observations made to the club, it will be the base to begging the negotiation process with the creditors, which is the vital part in the administration process.

ARCHIVE NEWS APRIL/13

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