Granada shakes off tax debt, but Xerex hit rock bottom

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By Gareth Messenger
June 27 – Good news, bad news in Spain. During the launch of the club’s new season ticket drive this week, Spanish Primera club Granada announced that within the coming days they will be clearing all outstanding tax debt. At the same time Xerex, relegated from Segunda B, missed payments to the Spanish taxman and moved a step closer to bankruptcy.

Granada are generally regarded as one of Spain’s stronger financially managed clubs, but even they were in debt to the taxman. Club secretary Pedro González Segura revealed that the club had decided to speed up payments to the Spanish treasury over the summer to clear its outstanding tax debt.

The current board of directors took over the club’s debts of around €4 million in 2009, and immediately agreed a payment plan with the tax authorities to pay the debt over a number of years. However, the club, owned by the Italian Pozzo family, have traded carefully, despite generating just €12 million a season in TV rights during the past two years, the lowest for any club in the Primera.

If TV rights revenues are disappointing, attendances are encouraging. Granada topped La Liga’s attendance list with average attendances at 90.4%, despite a decline from the previous season where they averaged attendances of 94%. Granada has been aggressive with its ticket pricing with significant discounts for season ticket holders to renew, and some ticket prices being reduced between 5% and 23% on average in different sections of the stadium

The club also announced a large number of sponsor renewals on improved deals, despite main sponsors Caja Granada deciding against a renewal following its recent merger with banking group BNM.

If Granada are an example of what it takes to survive, Xerez CD are an example of what it is like at the other end of the scale for clubs unable to meet their debt repayments. Xerex now look likely to be the second club in 10 days to close for good, following the disbanding of Salamanca last week.

Xerex’s attempts to raise new funding have failed and the club has now missed payments to creditors with no realistic saviour on the horizon to get the club through the crisis.

Xerez were founded in 1947 and spent most of their history in the lower leagues of Spanish football, but did spend a single season in the top tier after securing a comprehensive Segunda title in the 2008-2009 season, before being relegated in 2009-2010 from which point, the club has struggled financially.

Contact the writer of this story at moc.l1733898512labto1733898512ofdlr1733898512owedi1733898512sni@r1733898512egnes1733898512sem.h1733898512terag1733898512. Gareth is Editor-in-Chief,www.laliganews.tv. Follow Gareth on twitter: @G_Messenger