Espanyol assumes losses and sell for 20 million

Espanyol announced this week that the General Shareholders’ Meeting would be held on December 9 and the first (and important) details of the entity’s economy and the forecasts for this return to First are already beginning to be known. In broad strokes, and although 2Playbook perfectly shelves the accounts of the entity, Espanyol decided to assume losses of 20 million euros in two years in order not to suffer the consequences of the declineAll this made possible by the Chen Yansheng umbrella and the capital increase of 38 million that took place in June.

The 2020-21 financial year ended with losses of 11.4 million. A drop last year in television and sponsorship revenues were offset by the 30 million that LaLiga grants in the first year of the decline. The club is gradually recovering its previous balance, but plans losses of 8.9 million, which is a problem for the solid economy of the Blue and White club. The proceeds of this course are in fine print.

Espanyol Shield / Flag

La Liga Santander

* Data updated as of November 10, 2021

The entity foresees that the ordinary ones will reach 77 million and leaves another 20 for capital gains from player transfers. In this way, the entity plans to sell for that value or in the winter or summer market, so that again there will be footballers in the window to fulfill the roadmap set by Chen Yansheng. If these sales are not made, the president will have to cover that hole (a capital increase) if the club wants to fulfill its forecasts. In the same portal, Josep Maria Durán, CEO of the club, declares that “it allows retaining sports talent and exercising the optimal transfer policy to compete in LaLiga Santander”.

Debt decreases to record: only 20.3 million

In relation to its own income, the entity charges 55.21 million for television rights (eight less than in the European year and the decrease) and commercially, after the agreements with Riviera Maya and Reale, the entity is expected to exceed the 12 millions. All this compensates for the sports salaries that reach 64.8 million, with a specific weight of the amortizations of Adrián Embarba, Leandro Cabrera and Raúl de Tomás, which will cause a record figure of 21.1 million to be reached this course.

But regardless of the short term and the forecasts that affect the configuration of the workforce in the future, the best news is the reduction of debt to record figures. According to LaLiga calculations, the club’s net debt stands at 20.3 million, the lowest value in its recent history, after a 56% year-on-year cut. Those debts are mainly with clubs for the payment of players and with a loan of 6.1 million to be repaid until 2022-23.