Governing body confirm level of Real Madrid debt
The Spanish Football League (LFP) has confirmed reports that Real Madrid's debt stands at Eur541 million, but has moved to defend the club's status by stating it has "excellent financial management", reports Soccerex Business Daily. The LFP has stated its conviction that Real has the income-generating ability to manage this debt.
According to Diario AS, the League said that UEFA takes into account net debt in its Financial Fair Play programme and in Madrid's case this is 18% of the amount permitted, "which shows the financial excellence of the club".
The LFP said that Real also has "no debts with the tax authorities". The LFP added: "The club has the capacity to deal with the debt and the figures show that Madrid is economically solvent, within the economic controls established."
The LFP said that Real and FC Barcelona account for Eur900 million of Spanish professional clubs' total Eur3.6 billion debt, as of July 30, 2012. The governing body is seeking for this figure to be reduced to Eur2.4 billion in 2014 and Eur2 billion by 2017.
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