Football finance - Takeovers - Bankruptcies - Boardroom struggles - Sponsorship deals
 
Espanyol have announced that they will be cutting costs by 10% next season in order to balance the books. This will include a drop in players' wages from the current €21 million down to €19 million, and they are also looking to raise another €6 to 7 million in transfer fees. The club have been negotiating a syndicated loan of €4 million with local banks, and they hope to have this in place soon in order to meet their financial commitments. (16.03.13)
The court case began today for those accused of defrauding second division leaders Elche by the issue of false tickets. The fraud came to light when directors noticed a shortfall between takings and the numbers actually attending games, and police investigations uncovered that the head of the ticket office and other employees had reportedly been creaming off between €12,000 and €60,000 a match. (14.03.13)
The future ownership of Valencia is in the balance after a judge annulled a local government guarantee. Since 2009 the majority shareholder has been the club's own foundation, who paid up €75 million in new capital after raising a bank loan from Bancaja (now part of the state intervened Bankia) for a similar amount. The loan was guaranteed by IVF, the financial arm of the local Valencia government, and with recent delays on loan repayments the bank have been threatening to execute the guarantee, a move which would effectively put the club in the hands of the local "Generalitat". However now that the judge has ruled the guarantee null and void, the foundation's shares will revert to Bankia if they default on the next loan repayment, due at the end of August. (13.03.13)
Auditors BDO have been instructed by Spain's superior sporting body, the Consejo Superior de Deportes, to carry out an investigation in to the accounts of Guadalajara, and in particular to determine whether last year's capital increase was correctly carried out. The club were denounced by the LFP last month for irregularities when they carried out the obligatory conversion to a sporting limited company (SAD), as they claimed that the money put in for the capital was taken back out by the shareholders afterwards. If found guilty, the team could be thrown out of the second division. (12.03.13)
CD Xerez are in complete disarray! Bottom of the second division, with finances at the limit, funds blocked by the tax authorities and players already abandoning the club, there are serious questions as to whether they can make it to the end of the season, or even to the end of the month. President Rafael Mateos has intimated that he may walk out soon after criticism from fans, and major shareholder Joaquín Morales is desperately looking for someone to buy him out. Yet another victim of the prolonged crisis in Spain! (08.03.13)