Club news

DEALING WITH THE AFE

20 Jul 2013
The players are requesting for a solution to their problems, the AFE is supporting them and told to Lendoiro that the unpaid wages must be fulfilled before the end of the month. The club seeks for solutions.

The meetings of Augusto César Lendoiro in Madrid with the creditors of Deportivo are focusing the attention on these days, there are many rumours about the negotiations and the outcome, but for now nothing is certain. However there’s a new problem: the new position of the AFE (Spanish Players’ Association)

Within the last months the AFE has supported Deportivo during the first months in administration. President Luis Rubiales have had some meetings with Depor’s players and the association was considered as an ally in the road to reach a final agreement with the creditors.

But the recent protests of the players have changed the picture, on Thursday the AFE’s emissaries told to Lendoiro that they want to see the club paying before July 31 the €10 million owed to the players and remembered that Deportivo can suffer the relegation to Segunda B in case of not meeting the requirement before the deadline.

There’s a deal between the AFE, the Spanish Federation and La Liga that stipulates that any club failing to cover the unpaid wages of the players will suffer the demotion if they don’t fulfill the debts before July 31. The clubs at Primera and Segunda have never suffered the relegation due to this reason, but it’s quite common at Segunda B and Tercera División.

In past years the Galician club has reached agreements with the players in order to delay big part of the payments, this year they would accept similar deals, but want to see some ‘movement’ and not the passivity of past weeks. Lendoiro explained to them that the club is in a difficult position as it can’t access to the money and either has to wait for the decision of the judge regarding the final debt with the players.

And it’s that the report of the club’s administrators is only accepting the half of €10 million reclaimed by the AFE, the judge must be the one deciding the real amount and also if this debt can be considered as part of the bankruptcy assets, this means if this debt can be forgiven as part of the final agreement with the creditors.

This is another factor making the players nervous, because it has been commented that up to 40% of the debt can be forgiven, which means that part of their unpaid wages can be erased. So, the club cannot pay a debt that’s difficult to calculate without having resources.

In any case Lendoiro had two meetings with the team’s captains within the last week, one on last Friday and the other on Wednesday, in both opportunities Depor’s boss told the players that they will start to receive their money on next week, this since the president expects that the club’s administrators will use part of the money recently unfrozen from the embargos in order to pay these debts.

Another solution is to refinance the debt with the players; according to a recent report Novagalicia Banco is open to negotiate a new loan that will allow the club to pay part of the wages and therefore allow the operations of the club in the coming months and until reaching a final agreement with the creditors.

ARCHIVE NEWS JUL/13

ZAPPING


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