Deportivo secures relief from financial woes
22 Jan 2013
Embattled Primera Division club Deportivo La Coruna has secured some respite from its financial troubles after a Spanish court ruled on Monday that it can have access to Eur9 million owed by broadcast partner Mediapro.
The funds had been embargoed as part of the Spanish tax authorities’ clampdown on the club. However, Deportivo said in a statement: “The judge … Zulema Castro published a ruling this morning under which the embargo is lifted on Real Club Deportivo regarding the rights Mediapro was obliged to pay in January in the sum of Eur9 million plus VAT.”
Deportivo this month became the latest Primera Division club to seek assistance to avoid going out of business after announcing that it had filed for bankruptcy protection. The Galician club won the Primera Division as recently as 2000, but submitted documents to the courts to request that it be permitted to re-negotiate its outstanding debts. Spanish tax agency AEAT in November moved to confiscate income from a host of Primera and Segunda Division clubs, with Deportivo reportedly having all of its revenue seized. The club was last month said to owe around Eur34 million to the tax authorities, with its total debts sitting at above Eur100 million.
Deportivo secured promotion back to the Spanish top flight last season after being relegated in 2010-11, but has struggled on its return to the Primera Division and currently sits bottom of the table.