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Malaga boss claims debt is “manageable”

Malaga boss claims debt is “manageable”

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Vicente Casado, the general manager of Malaga, has claimed that the Primera División club’s debt is now at a “manageable” level and will be cleared by the end of 2015.

Vicente Casado, the general manager of Malaga, has claimed that the Primera División club’s debt is now at a “manageable” level and will be cleared by the end of 2015.

Casado insisted that the involvement of owner Sheikh Abdullah Al-Thani, who acquired the Malaga in 2010, had increased the club’s financial muscle. The club, which according to Casado is “straightening itself out”, is banned from competing in the UEFA Europa League this season due to financial issues after a turbulent couple of years.

“We’re negotiating part of the debt, but it is now a manageable amount,” Casado said. “The money owed is mainly due to people from previous years. We estimate it will be completely cleared within one or two years… An increase in revenue from sponsorship and investment is anticipated… There isn’t the same urgency to sell players as before. In July 2012, we were in a position where we needed to sell.”

He added: “Over the last few years, the sporting success of the club has been fantastic, but there have also been numerous internal difficulties. We’re working hard to ensure that these problems don’t happen again. With regards to the club’s budgets, we’ve come a long way and now have a balanced budget of Eur42 million. The Sheikh invested over Eur150 million into this project, which generated a debt of over Eur100 million; we then changed our strategy in the summer of 2012 and sold players in order to pay what was owed. It was a tough change to make to the strategy, but the reality is that before the Sheikh arrived, we had a Eur25 million budget, which has now risen to Eur42 million. This cash injection made by the Sheikh has generated much higher revenue and double the amount of revenue from audio-visual rights… There is absolutely no debt owed whatsoever to the tax office [and] all of the players’ salaries are also up to date.”