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Valencia End Season In The Black

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Updated: June 17, 2011

Valencia have ended the  year with a €4m profit.

llorente_gomez

After years of spending beyond their means and flirting with bankruptcy, Valencia have finished the season with income outweighing expenditure.  This will help to alleviate some the enormous debt inherited from previous owners.  The economic team’s work, headed by vice president Javier Gómez, has managed to at least stem the massive losses that were seeing the club edging towards liquidation.

On the 30th of June 2009, Valencia had a record level of debt of €547m.  This is mainly because in the six previous years, the club had “spent €300m more than their income.”

In an era when business was booming, with Juan Soler as president, the Mestalla club were accumulating huge deficits every season, The largest deficit came at the end of the 2008/09 season, with Vicente Soriano as the president, standing at a loss of €72m.

The previous season (2007/8), Juan Soler’s last season, the club brought in a total of €100m, however expenditure was a massive €160m.  These losses were at first covered over by the sale of the land around Mestalla.

Now, with Manuel Llorente at the helm, Valencia have once again earned “the confidence of financial institutions.”

The club’s main aims at the moment are to continue gradually reducing the debt, and to sell Mestalla and the surrounding land.  The other challenges facing the club include finishing the stadium in order to earn more income, to keep and increase the number of fans and members of the club, to boost the first team and win a trophy in order to calm the fans who are used to success, and finally, to not conform to being a third place team behind Barcelona and Madrid.

  • Mic

    well done Llorente, wt a president! 5M sound sh!t as a hugh club, but nevertheless, we used to have the word debts in every rumors associated with us! And all those reporters can now fuxk off!

    • Jiwonsi

      Yeah I blame that idiot Sid Lowe for overstating Valencia’s incompetence. A large chunk of that debt would have disappeared if the club had not been caught flat-footed by the housing bubble and had managed to sell the Mestalla for a good price. As for Soler’s time as President, the club paid inflated prices for many of it’s players, but while flops like Del Horno, Zigic and Tavano were in the squad, quality players like Banega, Villa, Fernandes and Mata all joined Valencia during Soler’s term. The problem was that the club failed to qualify for the Cahmpion’s League too many times, and when they did qualify they left too early to get significant income from the competition.

      • Ximo

        We also paid €10.5m for Javier Arizmendi. Ouch…

        • Vedran

          Haha and 18 for Zigic :(

        • Fadi

          I thought 6.75 ME

  • http://www.vcf.central.com Aaron Brooks

    I think this means there must be a deal in place for the Mestalla. I may be wrong, but I don’t see how this is possible otherwise.

    NOTE: Sources say that Valencia are PROJECTED, EXPECTED, PREDICTED to end 2010/11 financial year in profit.

    We started this season with over €300m and there’s no way we could have recouped that without the Mestalla.

    Either we’ve sold it or [more likely] we’ve exchanged it with the banks for our outstanding debt.

    What this would mean – entering the next phase – is that we need to finish the Nou Mestalla. Except we still have no money to fund it.

    What we would have is an equitable franchise once again again, one that might attract investment [which means more debt]. There is also talk of us getting help from the government to finish the stadium.

    I’m not getting excited until there’s a formal statement about this, even until I know how the debt has been levelled [although, Mestalla sale is the only conceivable option].

    I hope we get a statement soon, but there’s a long way to go – even debt free – to shake the noose of Nou Mestalla and stay competitive in an increasingly invested league…

    • Ximo

      It just means in this financial year. Our debt is still around €360m.

      From last Summer to now, we have made a small profit. Selling Villa and Silva, sponsorship deals and the Champions League money outweighing what we’ve spent.

    • Batman

      Aaron, I really think you misunderstood the article.

  • Fadi

    I wonder why no Russian billionaire is interested in buying the old mestalla land, and make tower buildings in…

  • Erik

    From what I’ve read, the players sales are not included in this calculation. Plus, that money has already been used to pay of parts of the debt and buying the new players. We have just managed to reduce the expenditure and increase the incomes.

    Income – Expenditure = €4m

    • Ximo

      Wow. I’ll be really impressed if player sales weren’t included.