By Monica Villar
April 23 – A Spanish judge has threatened Deportivo de La Coruña with liquidation unless an agreement can be found between the banks and the club over the share out of the Media Pro money held in escrow buy the court.
“If you are interested for this to go any further, negotiate amongst yourselves otherwise all activity will be ceased, followed by liquidation,” judge Rafael García Pérez told Deportivo and some of its creditors regarding an agreement over what to distribute the €9m plus VAT from Media Pro.
The hearing was attended by representatives of Deportivo La Coruña, the banks Banco Gallego and Novagalicia Banco, the board of administrators and the Tax authorities.
Deportivo say that there is only €1.5 million left in the club’s account. Players have now been paid last month’s salaries, which is why the club is now depending on the image rights money from Media Pro.
Meanwhile, representatives of both banks argued that they have a right to Deportivo’s earnings and that the banks are not to blame for Deportivo’s current economic troubles.
Julio Fernández, representing the administrators, said the club needed the money to ensure the club’s viability and that all parties have to come to an agreement, because to benefit one of the parties, they can’t jeopardise others.
After hearing all arguments, the judge concluded that that all parties must reach an agreement because if there was a cease in activity, it would affect not only Deportivo, but all creditors.
With the very real threat of liquidation, all sides acknowledge they will need to compromise to find an agreement otherwise La Coruña will lose its football team and they will all lose their money.
Contact the writer of this story at moc.l1734793362labto1734793362ofdlr1734793362owedi1734793362sni@r1734793362alliv1734793362.acin1734793362om1734793362. Monica Villar is news editor of leading Spanish football website www.laliganews.tv