Club news

WHAT’S THE DEAL WITH THE SALARY CAP?

01 Jul 2017
After the signed deal with Abanca, the salary cap at Deportivo is passing from €24 million to at least €34.5 million. This means that the club is no longer having the lowest salary cap at Primera División.

The big announcement made on Thursday regarding the new deal with Abanca is opening a new scenario for Deportivo. In the current circumstances, the Galician club was among the worst two salary caps in la liga, now the new situation is pulling Depor into the “middle class”. But, how good is the improvement?

The debt remains the same: €90 million. What changes is the owner of the debt. Around €50 million were owed to the Tax Agency, €43 million as part of the privileged debt signed in the bankruptcy deal of 2014.  Now those €43 million are owed by Abanca.

The Tax Agency was demanding to pay this debt in five years, which means to pay around €10 million per year. In the new scenario, Abanca is requesting to make the payment in fifteen years with a yearly payment of around €3.5 million. This difference allows the club to have more money per season and therefore improve the salary cap.

Also, in the old scenario the Tax Agency was requesting to collect the 25% of any extra operation like a transfer (Insua and Lucas Pérez, the latter enters in the calculation of next season) or the increase in the TV contract (from €25 million to €45 million). Now, Abanca allows Depor to have the 100% of this money, another calculation that raises the salary cap.

President Tino Fernández didn’t want to reveal what the club expects about the new salary cap, he just said that they must wait to the final word of La Liga as the system used is complex, but for now the comment is that the salary cap for the new season will pass from €24 million to at least €34.5 million, this is the €7 million difference in the comparison between the payments to be made to the Tax Agency and Abanca, plus the saving in the transfers of Insua and Lucas, plus the saving in the TV income.

This new salary cap calculation will pull Depor into the 13th spot among the best salary caps at Primera División. Also having in mind that this salary cap could be increased if the club closes more exits, like the cases of Sidnei and Çolak. And there are other incomes to be considered, like the money to be collected for the new name at the stadium. So, the salary cap could even reach the €40 million depending of the upcoming operations.

ARCHIVE NEWS JUL/17

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