Local authorities manage to avert dissolution of Oviedo through undisclosed income stream
Saving Real Oviedo from the Brink
Real Oviedo, on the verge of a potentially devastating dissolution, has now found a lifeline. A recent audit revealed that two substantial incomes hadn't been accounted for – one from Juan Mata's training rights post-Chelsea sale and another from an advertising contract with the Asturian government.
Dodging Dissolution
President Toni Fidalgo confirmed that the club is no longer at risk of immediate dissolution, although he emphasized the necessity of a continuous capital increase for long-term financial stability. Initially, Oviedo needed €1.9 million by Saturday to avoid dissolution, but thanks to fan support, around €1.5 million has been raised with two days left.
According to Fidalgo, the revised accounts for the 2011/12 season revealed that unaccounted-for incomes had led to a reduction in the required capital increase. Consequently, the new minimum limit to avoid dissolution this week is now set at €1.143 million, a figure already met by the club.
Unveiling New Funds
The provisional audit report, unveiled last Wednesday, revealed that the club’s net worth for the previous season had altered significantly, transitioning from a deficit of around €30,300 to a surplus of approximately €350,500. This shift was due to two unreported incomes, with one related to Juan Mata's training rights from the sale to Chelsea and another tied to an advertising contract with the Asturian government.
Fidalgo further explained that, regardless of the cause of dissolution, the club needs a €4 million capital increase for overall solvency, or at least €2.5 million to ensure its continued existence. He considers another €1 million indispensable by Saturday to meet this goal.
Future Financings
Oviedo has announced a share purchase by the Trabanco cider company and continues to negotiate with various business groups for capital entry. In addition, the club is in talks with a London law firm regarding the transfer operation of Stan Collymore from Bradford City, as the current board remains uncertain about whether all payments were made. Despite some payments being settled, details of the last payments are unclear, leaving the possibility of lingering debt.
While there's no recent evidence suggesting a significant alteration in Real Oviedo's financial situation resulting from Juan Mata’s training rights or an advertising contract with the Asturian government, both income sources may positively impact the club's finances if fully accounted for. Even in the face of past financial hardships, Real Oviedo has managed to bounce back, evidenced by their recent return to La Liga and subsequent revenue boosts.
The unreported income from Juan Mata's training rights and the advertising contract with the Asturian government might further bolster Real Oviedo's finances in future, should they be fully accounted for. Having returned to La Liga, Real Oviedo's financial status has seen a significant improvement, with the potential for further boosts from these sources.
