By Jake Gable
August 20 – Valencia have revealed that the club’s debt now stands at €275.7 million (£235.1 million) after a due diligence report by consultancy firm KPMG. Club president Amadeo Salvo explained that the Spanish club’s debt has reduced by €66 million (£56.3 million) since 2008 and described the economic management as “positive”, however there are still general concerns for the state of financial health for many La Liga clubs, especially under new FFP (Financial Fair Play) rules and regulations set out by governing body UEFA.
Aurelio Martinez, president of the Valencia CF Foundation, also spoke in a positive manner in regards to the club’s financial situation and was keen to stress that all debt to the bank, with nothing owed in terms of tax.
“The club is viable and I can reassure all organisations that they can trust us, starting with [banking conglomerate] Bankia,” said Martinez. “Valencia’s actual market price has more debt than equity”.
“Our only debt is to the bank. We are different to other big clubs in that we are up to date with [tax authorities] Hacienda and there is nothing mortgaged that depends on future income, like television for example. We hope by that date our academy will produce players for the first team and we will not have to enter the market to sign players. If we accomplish the plan laid out then in 2016 we will have a positive operating result and will not have to sell players to balance the books.”
The club have had to sell on prize assets including David Villa, Jordi Alba, David Silva and Juan Mata in recent seasons to keep afloat financially. This summer, they received £26m for the sale of star striker Roberto Soldado to Tottenham Hotspur.
Contact the writer of this story at moc.l1734844197labto1734844197ofdlr1734844197owedi1734844197sni@e1734844197lbag.1734844197ekaj1734844197. Jake Gable is a columnist for www.laliganews.tv