Club news


25 Oct 2013 makes an analysis of the final report presented by the administrators to the judge. The global debt is €160 million; the net debt could be €119 million. The three main creditors represent the 82.42% of the total debt.

On last week the Bankruptcy Administration (BA) presented the final report on Deportivo’s debt. The report is the base to be used in the negotiation with the creditors that will dictate the near future of the club. Judge Rafael García has fixed a date for a meeting between the club and its creditors: January 10, 2014 (10h30 CET). For now all the parties involved have the right to present their plan to pay the debt, the deadline is November 30.

The report established that the global debt of Deportivo is €160,079.603.25. It’s an increase of €3 million compared to the preliminary report, though it could be lower as the club have presented demands against the debt had with the Spanish Treasury, aka the Spanish Tax Agency (AEAT).

Precisely the AEAT is the biggest creditor of the club: $95,887,367.78. This amount represents the 59.89% of the debt.  The other two big creditors of the club are banks Novagalicia Banco ($26,549,676.27) and Banco Gallego ($9,496,666.59). These three creditors represent the 82.42% of the total debt and are the key to solve the administration process, because their votes are necessary in order to approve the final agreement to pay the debt.

The not privileged debt has been increased from €9 million to €35 million, something that was possible as, following the order from the judge, the privileged debt with the Tax Agency has passed from €83 million to €60 million. It means that, taking in mind that there will be a forgiven debt in the final agreement (between 20% and 45%), the net debt could be reduced between €7 million and €15 million.

It must be also reminded that currently there are €25 million that remain frozen in several bank accounts of the club so, adding this amount to the debt that will be forgiven, Deportivo will sign a deal with the creditors for a final amount that will be between the €119 million & the €128 million. This could be referred as the net debt of the club.

Apart from the big trio, there are another five creditors to whom the club owes at least one million Euros. The fourth biggest creditor of the club is La Liga ($2,999,832.48). The explanation of this debt is the assurance for the relegation, a fund to which all the Primera clubs contribute (Deportivo also received money from this fund).

The club also owes money to travel agency El Corte Inglés ($,1969,094.40), which is the one that arranges the trips of the first team. There’s also a debt with the Galician Treasury that correspond to pending taxes ($1,677,941.66).

Bufete Díaz Arias ($1,156,538.18) is another big creditor of the club. This company offers consultation on legal and tax issues, Finally, the club is still owing money to Paraguayan midfielder “Toro” Acuña ($1,086,876.68), who currently performs at 12 de Octubre Football Club.

Without considered the money owed to the three biggest creditors, the main amount owed by the club corresponds to debt had with the players: $11,281,977.34 (7.05% of the global debt). This amount is divided in three sectors: unpaid wages of the first team, unpaid wages of Fabril and unpaid image rights.

The biggest part is the wages owed to the current and former players of the first team: $9,000,219.58. Apart from the debt with Acuña, there are another 35 players on the list: Bodipo ($721,982.61), Guardado ($579,451.76 ), Ze Castro ($523,821.41),  Aranzubia ($515,940.94), Colotto ($448,308.47 ), Riki ($428,308.93), Bruno Gama ($397,530.95), Lux ($361,950.07), Valerón ($283,659.18 ), Salomão ($274,990.37 ), Ayoze ($241,145.35), Saúl ($220,152.96), Evaldo ($214,098.74), Abel Aguilar ( $205,919.74 ), Pablo Álvarez ($205,583.57) and Oliveira ($201,930.12 )

The list continues with Jesús Vázquez ($199,807.99), Marchena ($198,459.57), Manuel Pablo ($179,159.17), Pizzi ($174,985.75), Aythami ($148,630.14), Andre Santos ($148,236.65 ), Álex ($145,460.44, Camuñas ($137,207.43), Laure ( $129,478.65), Juan Dominguez ($124,341.03), Xisco ($104,534.82 ), Seoane ($84,114.08), Urreta ( $71,526.53), Lassad ($56,158.83), Rochela ($54,559.70), Borja Fernández ($54,308.11), Morel ($54,180.00), Juan Carlos ($17,789.90) and Assunção ($5,628.94).

Meanwhile, the debt with the current and former employees is for $673,365.92. The main creditors on this list are former coach Miguel Ángel Lotina ($360,000.00) and José Luis Oltra ($179,166.65), plus the current physical trainer of the first team, José Ángel Franganillo ($44,320.97). Apart from this list, the club owes money to Lendoiro, it corresponds to his wages ($109,219.17).

Deportivo owe $3,256,664.40 to other clubs. The main part of this debt is for unpaid transfers and formation rights ($2,991,537.82). The main creditor on this list is Nacional de Montevideo (transfer of Munúa, $959,596.00). The other three big creditors are Atlético Madrid (Ze Castro and other business, $737,500.00), Defensor Sporting (formation rights of Taborda, $412,427.41) and RCD Mallorca (transfer of Luque, $319,100.42).

The club also owes money to Racing Santander, Sporting Gijon and UD Almeria, clubs that suffered the relegation within the last two years and that are part of the relegation assurance. The amount owed to these three clubs is $190,324.58. Finally, Depor owe $114,802.00 to the Galician clubs that have signed a collaboration deal with Los Blanquiazules.



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