Club news

VIDAL: “IT ISN’T POSSIBLE WITHOUT ABANCA”

05 Mar 2020
Depor’s president attended the media to explain and justify the upcoming operation to increase the capital, a movement that will bring a large participation to ABANCA.

Fernando Vidal and his board of directors attended to press conference held on Wednesday. The president explained the reasons for the upcoming increase in the capital that will give to ABANCA the majority of shares. The following are the points of the initial message from the president.

Current situation: “The future of the club was complex and it was compromised back on December 17, just when we decided to make a step forward. At the time we were the last place in the league and the danger of relegation to Segunda B, which still there, was superior to our survival chances. Those consequences were provoking a devastating development in case of going down to Segunda B, and it could have caused the death of the club. We cannot forgive that we are in an administration process, the largest in Spanish football, and this limits our capacity to compete in the same conditions with other teams.”

The current debt: “We have an amount of fifteen million euros that must be paid before the year 2031, and it comes from the ordinary debt of the administration process. Also, the sub ordinary debt that must be paid between January 2034 and January 2048 for six million euros. Then, the main creditor of the club, ABANCA, we have several loans signed with them, and the debt with them is sixty-two and a half million euros. The last payment is scheduled for July 2032. With other debts, there are six million euros pending to be covered. Totally, the real debt is ninety million euros, plus fourteen million in interests. The club must face a payment of more than eighty-four million euros, plus fourteen in interests, in the next twelve years. That’s the reality of the club. You can describe as you want.”

Message from the board: “Against this cruel reality, I want to make a reflection. Can we think that with this debt and the planning to pay it you can live at Segunda División? You must assume the reduction of the income with a third season at Segunda. For this reason we presented a viability plan, a project that isn’t possible without the support of ABANCA, also from the fans. I understand that the general public has realized that we didn’t create this financial situation, but we are facing it and this proposal is the only real solution that has been presented. I want to remind you that in 2008, the club broke the rule of the 1% in the possession of shares, and this is opening the arrival of big investors that can help and fix the situation. We are conscious that the sporting situation doesn’t bring short term results, right now we are fighting for the permanence, but we are convinced that in the mid-term we have enough guarantees. We have found an entity that’s solid and that will help to avoid the disappearance of the club in case of relegation. We are fixing it even with a novel solution that never before was presented to La Liga. We presented a loan with a participative debt of five million euros, which allowed us to make changes with the coaching staff and the squad during the last window. To increase the salary cap with sells or new sponsorships wasn’t viable, for that reason we presented the formula that will be shown in the next meeting.”
 
The increase in the club’s capital: If the shareholders want it, we will have an important change in the ownership of the club. We will have a fast increase in the capital through ABANCA and the capitalization of debt for five and thirty million euros. It will allow us to reduce the debt from ninety million to fifty-five million euros, this will save us eight million euros in interests. We will also promote an increase of capital for thirty-five million euros for the whole Deportivismo. This model allows the participation of all the shareholders, once again Deportivo will be what the shareholders want it. So, I want to call the shareholders to participate, because we all are important. This will bring balance to our capital and therefore will increase the salary cap. We are in the middle of a complicate operation, the patient is in critical condition, and only the shareholders and ABANCA can heal it.”

Later the president answered questions from reporters. The following are the main inquiries that were solved.

Are you talking with other big shareholders like Tino Fernández and Estrella Galicia? “We will hold meetings with large, medium and small shareholders to explain the situation in detail. We do so because we want to have the support of the entire shareholder base to be able to approve the extensions and, from there, ask the Deportivismo to also participate in the increase, subscribing actions to the extent that each one can.”

Is ABANCA trying to see the club to a third party? «We cannot impose to ABANCA what to do in the future with the shares. Neither what board of directors should the club have. What we look at is the future of the entity, not for the one of the board of directors. What I do guarantee is that, as long as we are here, the shareholders can continue to attend to the meetings even only having two shares. And we are convinced that ABANCA will know how to manage the shares they will own.”

The sporting situation: “Since the match against Tenerife we started an ascending line. We left the hole in which we were stuck. The starting point was so bad that, after drawing with Girona and Lugo and losing in Zaragoza, we are only two points above relegation. With many teams there fighting. But I have hope. I think we have a good squad and a coaching staff that has experience in these types of situations. The average entry into Riazor is spectacular. All rivals congratulate us. Deportivo is very big because of everything behind it.”

Replacement for Somma: “On Monday it began the deadline to sign. It has to be a free player, which is not recommended because he will need time to be on shape, the season is ending, or one that plays in Spain. We are looking to see if it suits us because, if it isn’t going to improve what we currently have, then better not to bring it. Deportivo have many players who can act as centre-back: Eneko [Bóveda], Bergantiños... There are variants.”

What’s the role of Richard Barral? “He will continue to be an advisor to the board. He has done an extraordinary job in the winter market. Deportivo was the last place by far and, thus, it is very complicated to bring players. But he managed to make thirteen movements. We have reinforced the squad well in the most difficult positions.”

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