Depor’s finances embargoed

The Spanish tax office (Hacienda) has reportedly embargoed almost all finances at Primera Division outfit Deportivo today.

The club have, according to local publication La Voz de Galicia, seen a total of €14m of current and future income seized by the Hacienda, on the day that they have detailed that similar action across football has brought in over €132m in the past year alone.

Depor confirmed in their last posted accounts that they had total debts of €34m, but speculation has been that President Augusto Lendoiro actually has the club closer to €90m in the red.

The Tax Agency’s (AEAT) action today sees that assets on income are frozen, meaning Lendoiro loses access to money coming in on the latest television contract signed, ticketing, advertising and sponsorships.

Depor recently signed a deal with Vodafone to sponsor one of the stands at Riazor and also recoup some €3m from Santa Monica Sports, who manage the club’s advertising. Income from these streams has been embargoed by AEAT.

Funds raised from the near sell-out home match with Barcelona have also been seized, meaning that in total, from the club’s projected income of €18m, the first €14m is now under embargo.

Doubts now surround how the club will continue to function through the season, with speculation already suggesting that the players may not be paid wages until the situation is rectified.

Clubs in Spain currently owe an approximate total of €700m to the tax authorities, with Depor President Lendoiro one of many to have shown a lax attitude towards meeting his commitments to the Hacienda in the past.

Tags Debt Deportivo Hacienda Lendoiro