Club news

NEW FINANCIAL DEAL FOR DEPORTIVO

30 Jun 2017
Abanca has given a loan of 45 million Euros to Deportivo, the club already paid the major part of the privileged debt with the Treasury. The Riazor will now be called stadium Abanca Riazor until the year 2025.

Big announcement on Thursday; Deportivo and Abanca announced a series of collaborations deals, the main one is a loan for €45 million. Of this amount €43 million were used to pay big part of the privileged debt with the Tax Agency. More specifically, the privileged debt with the Tax Agency is now only of €2.7 million (not privileged debt is now €3.8 million).

This is a big improvement, because the Tax Agency was demanding to pay the privileged debt in five years, while the loan with Abanca will now be paid in fifteen years. It means the first scenario that president Tino Fernández mentioned a few weeks back as the salary cap will be significally increased.  This also taking in mind that the sell operations of players and the TV money will entirely be at the disposition of the club (before a percentage was going to the Treasury).

Another part of the deal with Abanca is that the Riazor stadium will now be called Abanca Riazor, no amounts were revealed about the contribution of the bank, only that this will be the name of the stadium until the year 2025.

Tino Fernández also pointed out that, one day before, he signed a new collaboration deal with the city council in A Coruña, this in order to make further improvements at the Abanca Riazor. More specifically, he mentioned that seven million Euros will be invested within the next five years. On last week the club also announced that American corporation Aramark is going to exploit the pubs at the Riazor for the next eight years. This company also manages the pubs of New York Giant at the Metlife Stadium and the Boston Red Sox at the Fenway Park.

In this historic press conference, Tino was joined by Juan Carlos Escotet, the president of Abanca. Escotet explained the deal with Deportivo, “As you know the club has been fulfilling a tough calendar for the payments and, we as bankers, recognize that they have made a great work, but the change in the structure it’s a reason to valorize a possibility in the change of the financial management, something that will allow to enjoy of better conditions that the club deserves. We have been analyzing a structural change that can be according to the needs of the club, the negotiations allowed us to reach successful agreements. We believe it’s an institution that can bring wellness to its surrounding.”

“The bank is giving a credit for 45 million euros in order to face the financial challenges, it means a solution in the long term. It’s an operation that has been analyzed according to the model of the business. We believe it’s a step forward in order to change the situation. This agreement will bring the financial muscle that will allow the club to be competitive. We also believe that this is bringing a support to the feeling of thousands of fans in Galicia, Spain and many countries in the world. At the same time to say that Abanca is proud to help Deportivo in order to expand the financial future, surely it will bring joy and success to Deportivo.” He added.

Tino Fernández emphasized the importance of the deal, “For me this is a special day.  You will remember this day in your whole life. I want to thank the bank for this opportunity. We have reached an agreement for 45 million and we will meet the payment within the next 15 years.”

“The meaning of this deal? It means to increase the competitive level, to increase the salary cap and have a better squad, but we still have to give our best every day. That’s the message to the club’s employees: we still need to give our best, every day. This is very important. I wouldn't say that we couldn't do it with someone else, but we the important thing is that we did it with them [Abanca]."

ARCHIVE NEWS JUN/17

ZAPPING

Related news

WHAT’S THE DEAL WITH THE SALARY CAP?


Back to Club news