Eibar rules out applying an ERTE to its workers

The Eibar rules out applying an ERTE (Temporary Employment Regulation File) to its workers due to the coronavirus. Although the COVID-19 has stopped the First Division league, as well as the lives of almost everyone, the Gipuzkoan club does not intend to apply economic measures that harm its 200 employees.

This has been expressed to footballers and members of the coaching staff of the first Barça squad. In this regard, one of the captains of the Eibar team, Sergi Enrich, said last Tuesday that the staff is calm about it. “The ERTE issue is a sensitive issue that affects the entire society in general. Eibar has given us tranquility and confidence. We are very grateful, because it is a complicated subject. The most important thing is everyone's health, which right now is the priority. That no more people are infected, and that everything is for the better, “said Sergi Enrich.

LaLiga has estimated at 670 million euros the cost of not finishing the current season (2019-2020) in the highest category (both for television rights and for the ticket offices of the parties). For this reason, the president of the professional soccer club association, Javier Tebas, insists that the league championship must be ended.

Eibar Shield / Flag

The economic crisis of the clubs that live up to date and need income regularly, are the ones that most bear the blow. So, Barcelona, ​​Atlético de Madrid and Espanyol have already announced that they will present an ERTE to reduce expenses.

Nevertheless, the eibarresa entity does not find the 'water around the neck' economically, although sporty in the fight for permanence (it is two points from the relegation posts). In terms of money, Eibar is the second club with the least net debt (in the 'box' it has more than 40 million euros), only behind Athletic Club (187 million), with data as of June 2019.

Economic solvency

Eibar, which has always been characterized by not spending more than it has, has saved in its 6 consecutive seasons in the First Division. That allows it to be the second club with the best net debt, which is the difference between the money in the treasury and the commitments to pay. In the highest category, as of June 2019, they only had a balance in favor of 7 of the 20 clubs: Athletic Club, Eibar, Real Madrid, Leganés, Celta, Sevilla, and Villarreal. The rest carried debts.

Eibar's spending budget for the current season (2019-2020) is 52 million euros, of which the majority (37 million) will go to sports personnel, while only 2 million will go to non-sports personnel. Since 71% of the expenses will go to the footballers, and members of the coaching staff of the first team, the most reasonable thing would be that in case the club had to 'tighten their belts', it would be for those who win the most, the players.

In this regard, the AFE (Association of Spanish Footballers) sees more logic, in the case of financial hardship of a First club, lower salaries for professional footballers instead of applying an ERTE that affects all workers.

For the 2019-2020 fiscal year, The Gipuzkoan club had foreseen a profit of 20 million euros before taxes, which mainly come from transfers. Eibar has already secured 20 million extraordinary income without waiting for the end of this campaign, since comes from sales made in the summer of 2019, when he obtained money from four footballers: 14 million for Joan Jordán (Seville), 8 million for Rubén Peña (Villarreal), 4 million – before he had to pay 2- for Marc Cucurella (Barcelona, ​​who later transferred it to Getafe), and one million for Pablo Hervías (Valladolid ).

Eibar depends on television rights, and in its budget for the 2019-2020 campaign it plans to enter 46 million for the retransmission of football matches. This amount represents 88% of ordinary income (52 million), although the percentage falls compared to total income (73 million).

This dependence on television money from the Gipuzkoan club has two faces. On the one hand, it means that has fewer resources to obtain money through other channels (partners, tickets, advertising) than other entities. However, that weakness could paradoxically turn into a fortress.

And it is that, whenever the league ends -even in July-, with which the television commitments would be fulfilled, Eibar would receive almost all the money provided for retransmissions. It could stop receiving box office revenue if the matches were held behind closed doors, without an audience, to prevent the spread of the coronavirus.

But other clubs, especially the most powerful ones, which have larger stadiums, a greater number of subscribers and fans, would be the most affected by the 'closure' of football. And the longer the break lasts, the worse. Thus, the FC Barcelona museum, which is now closed by COVID-19, billed 57 million in the 2017-2018 campaign. That figure exceeds Eibar's total budget (53 million) for the 2019-2020 season.

Escalante's Birthday

On the other hand, Gonzalo Escalante turned 27 on Friday March 27. The Argentine midfielder celebrated his birthday confined at home.