Deportivo Cali is going through, perhaps, the worst crisis in its history. With million-dollar debts and a very complicated sporting present, the ‘sugar growers’ fight to avoid relegation to the second division of Colombian soccer.
For several months, the club’s leaders have been looking for formulas to save it, in the midst of a terrible panorama: between 2017 and 2022, the liability quadrupled: it went from 24,000 million pesos five years ago to more than 100 billion today.
“Between 2020 and 2021 alone, the club’s assets deteriorated by more than 35% despite the robust or significant income obtained from player transfers,” says an open letter sent by a group of club members.
This will be the process to try to save Deportivo Cali
After two extraordinary assemblies and an external audit to find out the real situation, Deportivo Cali announced this Friday, on its social networks, that it will take advantage of the business recovery procedure.
“As of this moment, the negotiation of the obligations that the Deportivo Cali Association has with its creditors formally begins,” the club reported in a statement.
📄 [Comunicado] Start of the business recovery procedure, which will have the effects contemplated in article 17 of law 1116 of 2006, in accordance with the provisions of article 9 of legislative decree 560 of 2020. pic.twitter.com/Ncb0aaC92V
– Deportivo Cali (@AsoDeporCali) July 21, 2023
“For the Association it is one more step in the objective of strengthening the institution, honoring the commitments acquired and making the operation viable over time,” he added.
Several Colombian soccer teams have gone through similar processes, such as Millonarios, Santa Fe and, recently, Deportivo Pereira, which was one of the most complicated cases, since the liquidation of the corporation that was in charge of the operation of the professional team was ordered.
By taking advantage of this process, Cali will have to start negotiating with its creditors to have grace periods and defer debts. The biggest is the one that the club has with Dian.
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