League defends Madrid debt

La Liga authorities have defended Real Madrid’s finances after it was revealed that the club’s overall debt was €541m.

A reports in AS earlier this month insisted that Los Blancos owe almost half a billion euros – a figure backed up by Carlos Mendoza, President of the Association for Madrid’s Values, economist Jose Maria Gay de Liebana and Placido Rodriguez, the director of the Sports Economics Observatory.

But League authorities have claimed that the Santiago Bernabeu side are in rude financial health.

“The club has the capacity to deal with the debt and the figures show that Madrid is economically solvent, within the economic controls established,” a statement read.

It went on claiming that they have ‘excellent financial management’, and defended Madrid’s accounts by saying that UEFA takes into account net debt for their Fair Play regulation, and in their case that is at 18 per cent, which shows ‘the financial excellence of the club’.