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FINANCIAL REPORTS 2019: LIABILITIES

14 Nov 2019
The reduction of the debt continues, but it remains to be a big weight with the club competing at Segunda División.

The shareholders meeting of Deportivo is taking place on December 17 and the club already sent the financial reports to its shareholders regarding the period 2019-2020. The balance sheet presents a debt for €88.8 million, which represents a reduction of the 6% compared to the previous campaign.

As it’s normal now, since signing the loan with ABANCA, the major part is long-term debt: €78.3 million (88%). The remaining €10.5 million is short-term debt (to be paid within one year).In 2017, Deportivo signed a loan agreement with ABANCA for €45 million to be paid within 15 years, since then the club have been paying between €10 million and €15 million per season in order to reduce the debt.

The debt is manageable, but it continues to affect the cash available for the competition, especially since the existence of the salary cap system and also for the fact of been playing at Segunda División, situation that drastically reduced the TV income.

The evolution of the debt since the bankruptcy:

Year Debt 
2014 €160.4 million
2015 €129.79 million
2016 €116.32 million
2017 €100.87 million
2018 €94.20 million
2019 €88.80 million

 

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