By Mark Baber
December 19 – Spanish club Deportivo de La Coruña are in imminent danger of entering administration.
On the other side of Europe Rapid Bucharest have already filed for insolvency and are cutting deeper into their cost base.
La Coruña club President Augusto César Lendoiro said: “Either we reach an agreement with the tax authority before the end of the year or we go into administration.”
But yesterday, coach José Luis Oltra characterised the team’s situation as: “Not good, but not critical or dramatic.”
The positivity may be misplaced with debt collectors lining up to visit.
For La Coruña to survive it will need understanding creditors.
Sitting at the bottom of the Primera Liga, Deportivo owe the Spanish taxman about €34 million (£28 million/$45 million) and have total debts of €100 million (£81 million/$132 million).
According to Lendoiro the club is profitable but, “The problem is the debt and the stranglehold in which the banks and tax authorities are holding us.”
Across Europe, things are looking worse for Rapid Bucharest.
Sitting mid-table in Liga 1, Rapid filed for insolvency earlier this month after being unable to pay players or employees for some months and running up debts of nearly €30 million (£24 million/$40 million).
The Romanian club has now decided to sack all foreign players.
Team manager Dănuţ Perjă said on Tuesday (December 18): “We renounce all foreigners.
“All of them will receive the documents under which their contracts are terminated unilaterally by email.”
Blaže Ilioski and Figueiredo had already had their contracts terminated.
The others to leave will include Brazilians Peterson Peçanha, Wallace, Gláuber and Renan Silva, Portuguese Rui Duarte and Filipe Teixeira, Serbians Miloš Pavlović and Nemanja Milisavljević and Montenegran Vladimir Božović.
Due to its financial situation, UEFA has held back prize money due to Rapid for participating in the Europa League.
On Tuesday, chief executive Constantin Zotta resigned but he has a contractual obligation to remain for 60 days.
Subject to further appeal, Rapid owner George Copos was sentenced to five years imprisonment by a Court of Appeal on 12 November for his part in corrupt transfer dealings.