By Monica Villar
April 8 – Deportivo La Coruna may be showing signs of improvement on the pitch as the season comes to a close, but economically the Galicians are having a tough time as the life-threatening battle over cash to run the club intensifies.
Last Wednesday (April 4) the judge leading Deportivo’s administration proceedings, Rafael García Pérez, lifted the freeze over the VAT on the money from TV rights – €2.1m – saying this sum should be released to the club, but the rest of the money, €12 million, was not to be released.
The judge said that “that the embargo on the VAT of the 12 million Euros (€2,160,000) is to be stopped, therefore the proceedings should be started to put the money into the account assigned to the administration process”.
It is believed that Deportivo will appeal this decision and they have 20 days to do so, The club has maintained that they need the whole €12m from Media Pro to sustain the club until the end of the season. The administrators insist that from now until the end of the current season Deportivo can survive with about 1,5€ million.
The relationship between Deportivo La Coruna’s president, Augusto César Lendoiro, and the administrators has deteriorated.
Last month the administrators released a report detailing the sums Deportivo owe their creditors. Lendoiro was unhappy with the report and days later held his own press conference to highlight the discrepancies between the club and the administrators’ version of things.
Media Pro have also admitted that they still haven’t paid Deportivo €10.6m for image rights, money the club should have received four months ago. The judge will rule on this sum on April 22.
Deportivo, like many other Spanish teams, are paying for the excesses of their past. For Deportivo to maintain their commercial competitiveness it is crucial they maintain their place in the Spanish first division. They are currently just one point away from safety with eight matches to go before the season ends. A club that was once challenging the best teams in Europe in the Champions League is now fighting for its existence.
Contact the writer of this story at moc.l1734833085labto1734833085ofdlr1734833085owedi1734833085sni@r1734833085alliv1734833085.acin1734833085om1734833085. Monica Villar is news editor of leading Spanish football website www.laliganews.tv