Espanyol will present the accounts for the 2023/2024 financial year at the general meeting of shareholders scheduled for December 4, where, except for last-minute adjustments, losses of 13.8 million euros will be declared, according to what has been learned The Vanguard.
This figure exceeds the budgeted losses for this year by five million, estimated at the beginning of the season at 8.8 million. This difference is due, according to club sources consulted by this medium, among other circumstances to the promotion playoff dispute, which extended the season longer than expected, with the associated costs that this entails.
The losses associated with last season contribute to raising Espanyol’s net debt to 70.9 million
The losses associated with last season contribute to raising Espanyol’s net debt to 70.9 million euros. This negative trend began with the pandemic and has been aggravated by the team’s relegations to the Second Division.
The intention of Chen Yansheng, the largest shareholder, is to carry out a capital increase that will reduce debt to alleviate the club’s financial situation, reinforce its net worth, which is well below the share capital of 165 million euros, and thus move away the risk of cause for dissolution according to the Companies Law. This extension will also allow for extending the salary limit for next season.
Although the club’s CEO, Mao Ye, announced last September that this capital increase would take place at the shareholders’ meeting, the club owner has chosen to carry it out in the month of May, since this injection , through the transformation of the debt that the club maintains with Rastar Group into share capital, would not contribute to improving the salary limit for the winter market.
Given this impossibility, the owner has deemed it more appropriate to carry out the capital increase at the end of this season in order to know definitive figures for the current season and to be able to meet the demands of LaLiga more precisely to improve the salary limit for the season. 2025/26.
#Espanyol #close #financial #year #losses #million
