TV Money Uncertainty Threatens Spanish Clubs Future says Spanish League Vice President
February 26, 2013
The vice-president of the Spanish League, ampoule Javier Tebas, has warned that the existence of Spanish football clubs could be under threat if television companies are not able to pay the amounts agreed.
The economic situation in Spain has led to broadcasters having difficulty paying the €670 million ($875m) that has been agreed, which in turn, leads to financial trouble for the clubs in need of that money.
Tebas told Cadena Cope radio station: “We have met with one broadcaster and we are going to keep working so that [cutting the amount paid] does not happen. The clubs are already in a tense economic situation. If you take away three or four million, it would get very complicated.”
In total, La Liga clubs are around €3.5 billion ($4.57m) in debt. Deportivo la Coruna are currently bottom of La Liga and over €100 million ($130.7m) in debt and went into administration in January.
Tebas pointed to Deportivo as an example of a club that could go out of business. He added: “Within some months, we will see teams from the first and second divisions which will become insolvent and end up disappearing.
“Depor is the Primera club which has the most difficult situation. As they are in administration they are allowed to negotiate their debt and find an agreement. They must find a good one, to pay over the long term, and then fulfill it.”
Deportivo’s plight will worsen if they are relegated at the end of the season. “A certain debt in La Primera can be maintained because you have a lot of revenue, but if you drop to La Segunda and you stay in that division, you have trouble meeting your debt repayments. That has often ended in an administration process. They are the clubs who are most at risk,” said Tebas.