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Sporting closed the 2021-22 financial year with 6.5 million euros in losses

Sporting closed the 2021-2022 financial year with 6.5 million losses after taxes. This drop will be covered in its entirety with the capital increase launched by the Orlegi Group (7 million), approved by the extraordinary general meeting on August 26 with the aim of doubling the club’s share capital from 7 to €14 million. The consequences of covid, three years without player sales, deferring the subscription campaign and the very poor classification of the sports project have reduced income.

The new property has not revealed, however, in its memory an estimate of the budget corresponding to the 2022-2023 campaign. Orlegi will present the budget for the current season at the ordinary general meeting to be held on Thursday, November 24 –on first call–. The Mexican group will also show the numbers of the last exercise of Javier Fernandez as the entity’s largest shareholder. That meeting between Orlegi and the minority shareholders of Sporting is expected to be very important to reveal the ins and outs of the project of the owners of the rojiblanco club, such as the ambitious plan to transform El Molinón with a view to the 2030 World Cup. Although the entity has a negative working capital , confirms the documentation that will be compensated through external financing.

The losses presented by Sporting have gone from 1.9 million euros in 20-21, to 6.5 million. It is fundamentally due to the effects of covid and the measures that the entity put in place to combat these consequences, such as the compensation system for season ticket holders for the impossibility of going to the stadium on 20-21. Although the previous property had a significant budget drop in its forecasts, estimating a loss of about 4.8 million on a budget of 15.6.

In the expenses section, the rojiblanco club collects in its economic report, there has been an increase of 2.3 million. One of the keys was in the very important drop in income from subscribers and partners: from the 3.5 million obtained at the end of the 20-21 financial year, it went to 1.5 million for the latter. A brutal blow, of 2 million euros. Income from competitions, meanwhile, rose from 64,500 euros to 944,000 this last year. One of the aspects has been the good performance in the Copa del Rey with the team eliminated in the round of 16 by Cádiz.

From the injection of the CVC fund, Sporting has already received, as of June 30, 12.3 million, of which 11.5 million have been spent. That is to say, Sporting would be subtracted to receive 16.3 million. 70% of the total should be allocated to the growth of the entity. Orlegi plans to pay for Mareo’s reform with a portion of these funds.

The auditor’s report. The audit report maintains that the 6.7 million losses for the 2022-2023 financial year at Sporting are mainly motivated by “outstanding remuneration with personnel, debts with the Public Administrations and debts with private and banking entities”, as announced in the letter . This same report also explains that “an account receivable is included as a tax credit of 2.3 million” and that “the board of directors considers that benefits will be obtained that allow its compensation in a period not exceeding that foreseen in legislation”.

The keys

6.5 million losses

Sporting closed the 2021-2022 financial year with 6.5 million losses. The consequences of the pandemic, the fact of postponing the subscription campaign and the poor results of the sports project have been key. Orlegi will cover this fall with the increase estimated at 7 million.

He spent 2.3 million more than planned

Sporting’s expenses in the last financial year 2021-20222 exceeded forecasts by 2.3 million. The rojiblanco club projected a drop of 4.8 million euros. 145,000 euros were in supplies.

The fall in income from subscriptions

It reported its most important drop in the difference between those entered by subscribers and partners in the 2021-2022 financial year, (3.5 million) compared to what was entered in the 2022-2023 financial year due to the compensation measures for subscribers.

12.3 million CVCs

Sporting has received 12.3 million CVC, of ​​which it has already spent 11.5. In other words, following these numbers, the club would need to receive another 16.3 million euros from this investment fund. 70 percent of the total must go to the improvement of infrastructures of the red and white entity.

Increased competition income

One of the most striking and positive aspects that can be seen in Sporting’s accounts at the close of June 30, 2022 is the increase in income through competition. In that sense, it goes from 64,500 to 944,000 euros, a very powerful increase.

The meeting, November 24

Orlegi does not report the budget it estimates for the 2022-2023 season in the dossier to which Sporting shareholders have access, so the Mexican group must show these numbers at the general meeting, on November 24, before approving them.

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