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SBD Global/August 27, 2014/Finance

Spanish Basketball League Side Bilbao Basket's New Management Has Reduced Debt By $2.6M

Spanish Basketball League (ACB) side Bilbao Basket President Xabier Jon Davalillo said that the club has reduced its debt from €5.6M ($7.4M) to €3.6M ($4.8M) this summer "thanks to rebates agreed upon with creditors, above all with players," according to Alfonso Herrán of AS. Davalillo took over the club in May "after the departure of former majority shareholder Gorka Arrinda" and the club is "expecting to reduce its debts to zero in three years." Under Garrinda, the club was making €3.5M per year and spending €5.5M "each season." Bilbao execs "have also agreed to a plan to make payments owed" to Spain's tax authorities and social security. The viability plan the club presented "would see the cost of the roster reduced" from €2.7M ($3.6M) to €1.9M ($2.5M) for this season. The players with the most expensive contracts -- Dairis Bertans, Axel Hervelle, Raúl López and Álex Mumbrú -- will "agree to lower their salaries by 10%." With the departures of Germán Gabriel and Roger Grimau and the arrival of "cheaper replacements," the cost of the roster will be €1.9M. That "figure will be even lower next season, when the contracts for every player except Mumbrú will expire." The "second point of savings will be on general spending," which was at €1.7M ($2.2M) and will drop to €700,000 ($923,700) (AS, 8/26).
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