By David Gold
June 21 – A report by University of Barcelona professor José Maria Gay into the state of Spanish football finances shows that debt in La Liga has reached €3.5 billion (£3.1 billion/$5.1 billion), as the league’s President confirmed plans to control spending.
The Premier League is still the most indebted league in Europe with a combined debt of €2.9 million (£2.6 billion/$4.1 billion)), but Spanish football has been warned that it is in danger of slipping into an “economic coma”.
Though the overall debt has fallen from last year, it is still double revenue, at €1.6 billion (£1.4 billion/$2.3 billion).
Barcelona and Real Madrid make up €1.2 billion (£1 billion/$1.7 billion) of the debt alone, though they also take in half of the €600 million (£520 million/$862 million) the Spanish league generates in overall TV revenue each year.
That inequality in revenues taken by Spanish top flight clubs has led many of its teams lower down in the league to spend significant sums in order to remain competitive.
After the top two, Valencia and Atletico Madrid are the clubs with the most debt, whilst a number of other teams are plagued by financial problems.
Real Zaragoza applied for voluntary administration last month, whilst Racing Santander are struggling to pay off their debts.
All three teams promoted to La Liga this season, Real Betis, Rayo Vallecano and Granada, are also in administration.
And last season, Real Mallorca went into administration and were barred from playing in the Europa League.
To tackle the problem, La Liga will create a commission to monitor and control club finances, Spanish Football League President Jose Luis Astiazaran said in an interview with AS.
“Spanish football needs to make progress towards an exemplary state of solvency,” he said.
“Among the clubs that form the LFP we currently have some dysfunctions which we have to get under control and we will make some decisions that will not be pleasant,” he added.
“It’s time to marry the sporting excellence we have achieved with financial excellence.
“Spanish soccer, and La Liga to be exact, has gained global admiration and we have to earn this distinction for economic management as well.”
It will ask for financial statements and accounts, reserving the right to dock points or withdraw licenses from teams who do not fulfil their criteria.
A general assembly vote on July 12 will decide on the precise measures to be implemented.
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