Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Report: Atletico's Success Masks Financial Problems
Reuters, April 8th, 2014 1:53PM

MOST READ
TAGS:  soccer business, spain, uefa champions league

MOST COMMENTED

By any measure, Atletico Madrid is having a fantastic season: Los Colchoneros, as the team is affectionately known, are in first-place in La Liga (albeit just one point ahead of second-place Barcelona and three ahead of third-place Real Madrid), and currently locked in a 1-1 draw with Barca in the UEFA Champions League quarterfinal, which will be decided at Atleti’s Vicente Calderon stadium on Wednesday. While many attribute the team’s success this season to current coach and former Atleti player Diego Simeone, Reuters reports that the club’s future hangs in the balance because its finances are in woeful shape.

According to figures from University of Barcelona finance professor Jose Maria Gay, the club is saddled with debts of more than 500 million euros ($690 million), and the cost of paying players and staff alone already accounts for more than 90 percent of its annual earnings. Jaume Llopis, a professor at the IESE business school in Barcelona, notes that the club has only managed to stay afloat by convincing the Spanish government to let the club fall behind in its payment of more than 100 million euros in taxes.

Atleti’s threadbare finances means that if the club failed to qualify for next season’s UCL (although it will), it would instantly become insolvent. It also needs to renegotiate a bigger deal with shirt sponsor Azerbaijan, and to potentially negotiate new sponsor deals. "Atletico Madrid's financial situation is dramatic," Gay told Reuters. "But this year because of the team's excellent results their economic problems are not talked about. Only with their continued presence in the Champions League, locking in the sponsorship deal with Azerbaijan, attracting more sponsors and selling their best players can they improve their finances, although it will be very tough.”

Read the original story...


No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
Five Lessons to Prepare for College Soccer    
Ed McLaughlin, the Athletic Director at Virginia Commonwealth who has been involved in college athletics for ...
Cal South TOPSoccer Program Turns 25    
"We're all soccer players, special needs or not," says Sandy Castillo, chair of the Cal South ...
How Neymar Played in Childhood     
Neyrmar: "I used to pick up the ball, set up the furniture and go around dribbling ...
Chivas USA Youth Players Face Murky Future    
Chivas USA, which folded after the 2014 season, had one of the MLS's most ambitious youth ...
Roma Partnering with U.S. Youth Clubs    
Italian Serie A club Roma, which has American ownership, aims to forge partnerships with seven U.S. ...
LVG: Falcao "Has to Prove Himself"    
Manchester United coach Louis van Gaal has responded to criticism over dropping Radamel Falcao by claiming ...
Report: Adidas to Assist Messi Move?    
According to Spanish sports daily AS, Lionel Messi's sponsor Adidas could be the key to the ...
Mourinho Questions Man City's Transfer Policy     
Chelsea coach Jose Mourinho suggested that rival Manchester City is not adhering to UEFA's Financial Fair ...
Toure Admits Man City Future in Doubt     
Speaking ahead of the opening games of the African Nations' Cup in Equatorial Guinea this weekend, ...
Ronaldo Blasts 'Defensive' Atleti Tactics    
Cristiano Ronaldo blasted Atletico Madrid for its unattractive style after the Rojiblancos ousted Real Madrid from ...
>> Section 2 Around the Net Archives