By David Gold
June 8 – Spain’s Real Zaragoza have applied to go into voluntary administration to deal with their perilous financial position.
The La Liga outfit are plagued by debts amounting to €110 (£98 million/$161 million), and the club released a statement confirming the decision to apply for administration on Wednesday.
“[The club] is faced with the reality of a cash flow imbalance.
“The principal origin lies in the losses suffered when Zaragoza were relegated three seasons ago, and in the economic effort made to achieve an immediate return to the Primera division one year later.
“Real Zaragoza is confident that this measure will mark a before and after in the project…and will allow them to achieve an economic viability that will translate into sporting success in the short term.”
Zaragoza survived in La Liga on the last day of the season, and are the latest Spanish side afflicted by financial problems.
Last year Real Mallorca went into administration and were barred from competing in the Europa League by UEFA.
Racing Santander this week called for their Regional government to guarantee a loan they need to make a debt repayment, whilst Hercules also applied for administration after they were relegated from La Liga.
Newly promoted Real Betis are also in administration, and fellow La Liga newcomers for next season Rayo Vallecano have been taken over by new owners.
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