Depor tax debt is double

Deportivo’s debt to the Spanish tax authorities (the Hacienda) is reportedly more than double the amount originally declared.

The administrators at the club have published a report this week revealing their insight into the club’s accounts so far and their recommendation, as previously reported, to remove President Augusto Cesar Lendoiro.

The administrators have determined that the €40m tax debt Lendoiro presented to the courts in opening bankruptcy proceedings in January was less than half the true amount and that the money actually owed to the Hacienda stands at €93.7m.

This would push the club’s total debt up to €146m, 63.4 per cent higher than the €93m total debt Lendoiro claimed when filing for bankruptcy.

“In our view, the facts described represent a blatant disregard for the rules, which prevents trust being placed in the managers that we referred to [Lendoiro and the board], so we feel that a change is status is needed, under the suspension of their power,” read the report released by the administrators working at the club.

They have recommended that a manager be appointed to oversee the ‘daily management of the club’ in Lendoiro’s place.

Lendoiro could reportedly face a prison sentence of one to two years for presenting false information in a bankruptcy proceeding.

The administrators have previously listed that the club owe almost €10m in wages to over 50 current and former players, as part of a long list of creditors, including a number of other football clubs.

Tags Debt Deportivo Hacienda Lendoiro Tax