Liga: Elche relegated (for tax debt) and Eibar will stay up

jojojo

JoJoJoJoJoJoJo
Staff
Joined
Aug 18, 2007
Messages
39,466
Location
Varies
Apologies for the mays in that heading. The Spanish press (based on a report from a well placed reporter on Cadena Ser) are reporting that Elche have missed their "last chance" deadline to resolve their debt problems. The club had put together a package of deals to avoid bankruptcy though even their new board have admitted that the level of the debt was higher than they had anticipated when they took over. They were still hoping even yesterday that the court was going to accept the arrangements, in particular one with the tax office over a new repayment plan.

If the press are correct and the bankruptcy court Judge has rejected the finance deals then the standard penalty is administrative relegation and the official announcement could come this week.

If they do go down, 18th place Eibar stay in Liga1.
 
La Liga has confirmed the report that Elche will suffer "administrative relegation" to Liga 2. The effect of this will be to keep Eibar in Liga1.

Elche's board did have a deal on the table that they say would have cleared their tax debt by the end of July. So they will probably appeal. However this is the second time they've been in this position and that will count against them.

Assuming they are relegated, all deals are off, the refinancing fails and this will probably end in bankruptcy and relegation to the 2B leagues (if they survive).
 
Happy for Eibar! The way they went down was so harsh. I'm sad for the Elche staff and players though, they did brilliantly to finish 13th. Was wondering who'll snap up Jonathas who had an incredible season, but only now found out he's actually on loan from some Serie B side I'd never heard of.
 
Any regular readers of Sid Lowe's Spanish column on the Guardian will enjoy this news too.
 
Skorenzy said:
Was wondering who'll snap up Jonathas who had an incredible season, but only now found out he's actually on loan from some Serie B side I'd never heard of.
Click to expand...
I was the same, couldn't believe it! No doubt he'll be sold, maybe Rayo will go for after losing Alberto Bueno.
 
Joemo said:
I was the same, couldn't believe it! No doubt he'll be sold, maybe Rayo will go for after losing Alberto Bueno.
Click to expand...

Atletico were linked with him a while ago, so I think he'll join a bigger side than Rayo. We'll see though.
 
Skorenzy said:
Happy for Eibar! The way they went down was so harsh. I'm sad for the Elche staff and players though, they did brilliantly to finish 13th. Was wondering who'll snap up Jonathas who had an incredible season, but only now found out he's actually on loan from some Serie B side I'd never heard of.
Click to expand...

Yeah, Eibar only went down because Barcelona seemed to have wanted Deportivo to stay up so their title party wouldn't be spoiled by Deportivo players crying on the pitch and both teams could celebrate after final whistle.

It's still harsh on Elche though. Players had nothing to do with the board being unable to pay taxes, holding them responsible for putting club in dire state is not the way I'd like sport to be.
 
Much as I like the romance of the Eibar story, I do sympathise with Elche and not just because they were my borrowed "second team" for a while.

They have good attendances, 8th highest in La Liga in fact. They have seriously hammered their expenses in an attempt to get their debts under control, they sat at 19th place in the Liga salary table last year (just below Eibar in fact). Yet they still managed that 13th place.

The new board now say they've got funding in place, provided they stay in Liga1. Too late? Too many promises not enough actual payments made? They say the tax debt will be cleared by the end of July, well maybe, but if funds are in place, why not clear the tax debt today? La Liga say they've heard promises before.

Elche say they'll fight it through the appeals system and they'll take it to court, but like Murcia last year they may not get very far and they'll probably run out of time.
 
Elche say they'll take it to the civil court now. From a technical point of view they have now got their clearance letter from the tax office, Elche say that should be good enough (not having that letter on time was the trigger for the relegation). Liga and the appeal tribunal say that a deadline is a deadline, and they missed the deadline, which broke a promise they made the year before (when they also missed the deadline).

For Elche administrative relegation to Liga 2 could actually trigger a second relegation to Liga 2B. They need to pay their players their full wages, including the bonuses they earned for finishing in 13th place, by the end of the month. However as most of their finances including things like sponsorships and loans rely on them staying in Liga1 they may not have the cash to do it.
 
jojojo said:
Elche say they'll take it to the civil court now. From a technical point of view they have now got their clearance letter from the tax office, Elche say that should be good enough (not having that letter on time was the trigger for the relegation). Liga and the appeal tribunal say that a deadline is a deadline, and they missed the deadline, which broke a promise they made the year before (when they also missed the deadline).

For Elche administrative relegation to Liga 2 could actually trigger a second relegation to Liga 2B. They need to pay their players their full wages, including the bonuses they earned for finishing in 13th place, by the end of the month. However as most of their finances including things like sponsorships and loans rely on them staying in Liga1 they may not have the cash to do it.
Click to expand...
 
Very unfair.Elche protests because there are more clubs with problems with Hacienda(tax office).I saw a table days ago and the debt of Elche was insignificant compared to the two teams leading the table with more than 100m€ debt(Atletico and Depor).
 
You must log in or register to reply here.