Valencia land $106 million loan
Reuters - Sunday 23 August 2009, 16:08
MADRID - Valencia have secured a loan of 74 million euros which they plan to use to acquire a stake of 72.5 percent in itself in an attempt to stabilise the cash-strapped club, president Manuel Llorente said on Sunday.
Local bank Bancaja agreed to lend the cash to the club's charitable foundation and the Valencia regional government, the Generalitat, has guaranteed the loan, the club said on their website.
The foundation plans to buy the remaining 1.53 million shares available in a capital increase, which has already raised around 18.75 million euros, they added.
"From this point a new era of stability begins and the players can concentrate fully on their game," Llorente said. "We have saved a very difficult and worrying situation."
Valencia's foundation said in a statement it planned to make shares available to those who had not been able to take part in the initial phase of the capital increase.
"At last the club is being returned to the Valencia fans," Llorente said.
The club finished sixth in the league last season and qualified for the potentially lucrative Europa League.
But their financial woes forced a halt to construction on a new stadium and officials said they might have to sell prize assets such as Spain internationals David Villa and David Silva.
The club's debts of some 500 million euros rival those of Real Madrid and Barcelona but they lack the vast earning power of the two Primera Liga giants.