Valencia lost US$47 million in the last year and announced an “accordion operation”

Valencia CF continues to increase its red numbers, while its main shareholder continues with financial injections to balance the accounts.

According to the financial statements of the last fiscal year, which ended in June of this year, the consolidated losses reached US$47 million, which are added to those accumulated in previous fiscal years. The previous year it had been US$32 million.

These losses are generated despite the fact that revenues grew slightly, from US$111 to US$112 million, but with lower income from disposals, as reflected in the income statement. Specifically, it responds to a lower profit from player sales operations, which in the last year amounted to 14 million euros, and in the previous year had generated US$50 million.

The club’s report also states that the main shareholder, the Meriton fund, “has confirmed the proportional financial support necessary to guarantee the parent company to continue with its operations.”

In this way, the club, which has called a meeting for December 12, will submit an accordion operation for shareholder approval, for which a capital reduction of US$57.8 million will be carried out. At the same time, a capital increase was agreed to be subscribed by its shareholder Meriton, for US$18.1 million, for credit compensation, replacing the loan that the fund itself granted to the Valencian club last year.

La Liga financing: up to US$124 million

In the explanatory notes of the accounts it is also explained that the Professional Soccer League and the CVC Capital Partners fund signed an agreement for financial support to the clubs. In this framework, they point out that Valencia CF signed a document of adhesion to that participatory financing contract in December 2021, for a maximum of US$124 million. Of this amount, the club has provided US$39.6 million and has repaid just over US$477,000.

The interest applied to this participatory loan is linked to the evolution of the company and more specifically to the income generated by its audiovisual rights.

The club also points out that it intends to finish the works on the new stadium, paralyzed for more than a decade, and that for this it needed sufficient financing to undertake it. This financing, according to the report, will come from this participatory financing of La Liga, specifically it will use US$82 million from that financing agreement.

In addition, Valencia CF’s accounting information shows that the club has debts with credit institutions of US$149 million, compared to US$124 million the previous year. The largest volume corresponds to loans with CaixaBank linked to the new Mestalla.

It also has a US$52 million loan with the Rights and Media Fund, linked to its shareholder, Meriton, backed by the club’s own TV rights.