La Liga Side Valencia On Verge Of Being Sold To Repay $415M Debt
La Liga side Valencia "is facing the prospect of being sold in order to pay back the club's debts" of nearly $415M, according to the AP. The club has "been unable to keep up with loan repayments to Spanish bank Bankia, and few alternatives have appeared." Bankia said in a statement, "Up to now, refinancing doesn't look possible since we have not received any sustainable plan from the club. We need investment to achieve a solution. The only other alternative is to look for investors that can guarantee the health of the club's sporting, social, and economic projects." Valencia President Amadeo Salvo said that finding a purchaser "would be a reasonable request, but stubbornly set conditions." Salvo said to a shareholders meeting, "The sale would be possible for €250 million ($345 million) that would wipe the club's debt and allow shares to be repurchased. The sale of Valencia will be decided here (in this room), not by Bankia nor the provincial government." Valencia "saw its finances balloon over the close of the last decade after investing heavily in the construction of a new stadium" that now stands "half finished, with the club unable to pay the builders" (AP, 12/11). In Madrid, Conrado Valle reported UAE-based Mubadala Development Company "has shown interest in purchasing Valencia." Mubadala representatives "were recently in Valencia to inquire about the club." Mubadala, "which has a connection with Man City's owners, would look toward Valencia through Louis Dowens, who was hired by Valencia three months ago as marketing director after previously working for Man City." Various "possible investors have contacted Bankia regarding Valencia, including private equity firm TPG Capital," Spanish newspaper ABC reported (AS, 12/11).