Racing Santander’s administrators have announced that the club has a total debt of almost €48m, a figure over €10m in excess of the one presented when the Cantabrians applied to enter bankruptcy in July.
The difference was explained by the fact that investment company Western Gulf Advisory (WGA), owned by Indian businessman Ahsan Ali Syed who purchased the club in January, 2011, is shown amongst the list of creditors as being owed €8.5m with bank interest taking up the remainder.
With the amount due more than previously envisaged, the administrators have sent out a stark warning that the state of affairs that existed in the past cannot continue. 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.”
Last year Racing incurred a loss of €16m, which the administrators claim is part of a trend over the last 20 years in which just five have produced positive results, and even then it was down to the sale of players.
Transfer fees over the past two decades have brought in €110m, with shareholders raising capital of €20m and €8.5m provided in equity loans. During this time the club has also received outside help from different sources, with public entities having awarded grants of €30m and loans of €6.8m.