December 13 – Valencia, struggling with €300 million of debt, has run into further trouble with Bankia, who holds most of the debt, saying there will no refinancing available for the club.
To resolve the situation it looks likely the club will be put up for sale, though president Amadeo Silva gave no indication that a buyer was in the wings but was adamant that the club was in control of its destiny.
“The sale would be possible for €250m – that would wipe the club’s debt and allow shares to be repurchased,” Salvo said. “The sale of Valencia will be decided here (in this room), not by Bankia nor the provincial government.”
Bankia, in a statement to the Associated Press, said. “Up to now, refinancing doesn’t look possible since we have not received any sustainable plan from the club …We need investment to achieve a solution. The only other alternative is to look for investors that can guarantee the health of the club’s sporting, social, and economic projects.”
Valencia is currently stuck with its long-delayed Nuevo Mestalla stadium project. Originally designed to be a 75,000-seat stadium in 2008, a new design has been released reducing capacity from 75,000 to 65,000 and the cost from €260 million to €200 million. Originally due for completion in 2009-10, construction is on hold until new finance is agreed.
Valencia is not the only Spanish club facing difficulties.
Jose Maria del Nido resigned as Sevilla president earlier this week having been condemned to seven years in jail for the misappropriation of almost €3 million in public money while he worked for Marbella’s town hall between 1999 and 2003.
Del Nido took over as president in 2002. The club has won the UEFA Cup, Copa del Rey, Spanish Supercopa and European Super Cup trophies under his presidency. Current vice-president Pepe Castro will take over until the club votes on a new president.
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