The Covid generated a negative impact of 5.5 million euros in Alavés

The Deportivo Alavés published this Monday the data that will be offered in the next Shareholders’ Meeting scheduled for December 20, among which stands out that the Covid-19 generated a negative impact of 5,524,992 million euros caused by the closure of the stands in the matches and the spending generated by the coronavirus.

The club president, Alfonso Fernández de Trocóniz, and the financial director of the Baskonia-Alavés Group, Guillermo Oraá, detailed the figures of the entity that closed the 2020-21 academic year with losses for the first time in ten years, as a result of the global impact generated by the pandemic, with a negative result after taxes of 2,067,607 euros.

Despite everything, these accounts improve by practically 900,000 euros to the figures provided in the budget approved for this season, which estimated losses of 2,930,299.

The more than 5.5 million euros of impact on the club by the Covid-19 They come, according to its highest representative, from the lack of income in season tickets and ticket offices, audited at approximately 4.7 million euros; in the decrease in advertising revenue; and higher spending to deal with covid sanitary measures, especially in travel (larger planes, individual rooms or the use of two buses instead of one).

To this must be added other expenses derived from the provision of services and “the paralysis of the player transfer market”, as the club had foreseen in its budget income from the sale of players in the winter market.

This has been achieved at a time when the club has increased spending on sports staff by three million euros, since last year it changed its coaching staff twice and that meant “an increase in cost that was not foreseen” .

This improvement in the budgeted figures is due to the activation of a tax credit of 3.7 million euros, a common practice in any company, which consists of “reflecting in the income statement the deduction of corporate taxes in subsequent years where it goes. to have benefits ”, after having reflected losses in the previous year.

Regarding the current course (2021-22), a “balanced” budget was proposed with a total income of 71,938,886 euros and a total of expenses of 71,917,767 euros, which offers a positive result of 21,119 euros. The club was confident in its full compliance at the expense of the evolution of the health crisis.

In addition, as was reflected in last year’s accounts, the possibility of selling players is contemplated in a winter market that is expected to be “more normalized.”

These numbers will be put to a vote at the general meeting of shareholders which will take place on December 20, if the restrictions due to the pandemic do not prevent it, it will be face-to-face.

In this call, the renewal of the Board of directors at the end of the term of the Council positions that were elected in December 2016.

Likewise, the modification of the company’s bylaws “to adapt them to current legislation and new technologies” will be presented, as well as the approval of a Regulation for the development of the meetings themselves, which regulates the call, attendance and voting regime, as well as the rights of the shareholders.