Financial woes increase for Racing Santander as debt increases significantly – La Liga News
Troubling news for beleaguered Racing Santander fans, as financial administrators announced the clubs debt have increased in excess of 10 million Euros since July.
The Cantabria based outfit entered bankruptcy in July and according to a report recorded a total debt of 48 million Euros.
Rise in debt of the club has been attributed to bookkeeping differences.
Capital invested by owner, Ahsan Ali Syed has been shown as one of the creditors. The 8.5 million Euros plus bank interest makes up the 10 million Euros increase.
Ahsan took control of the club in January, 2011 through his investment company Western Gulf Advisory (WGA).
The administrators have been irked by the rising debt of the club and sent a warning to Racing. They pointed out the irregular financial activities and stated that this will not be tolerated.
A statement said: “It is understandable the club has aimed to avoid a sporting disaster, which in Racing’s case would amount to relegation to the second division, but the structure of payments made do match income earned, and there is no justification for
this.
“At Racing, as at the majority of La Primera clubs, the sporting aspect has taken precedence over the economic one and that explains, but does not justify, the deficit in accounts that has been presented.”
http://www.senore.com/Football-soccer/Racing-c40298 have been on a down trodden path for quite some time now. They incurred losses of 16 million Euros last year.
The administrators have claimed that this is usual and is part of a continued trend since the last 20 years. They also pointed out that only five times the club have produced positive results in that period of time.
Sale of players were attributed to the positive outcomes in that period. Over the past two decided, Los Verdiblancos have brought in 110 million Euros, 20 million has arrived through the activities of shareholders, and 8.5 million Euros were injected through
equity loans.
Racing Santander’s liquidity problems was also aided by outside help. Public entities giving award grants in the region of 30 million Euros, as well as loans of 6.8 million Euros.
This is not the first time the hierarchy finds themselves in such a situation. in 2006, Racing found itself in a similar circumstances.
At that time income received from transfers, subsidies and independent contributions was used to offset the deficit.
Involvement of owner, Ahsan Ali Syed has arisen suspicion from the administrators, who have issued their insecurities regarding the Indian businessman.
Ahsan still has incomplete payments against his name and his stature within the club is diminishing with every day.
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