Crisis club Malaga to release entire first-team squad

The financial crisis at Spanish Segunda club Malaga has led the club to laying off the entire first-team squad in a desperate bid to save itself from oblivion.

The Andalusian club were in the quarter finals of the Champions League as recently as 2013 but have lurched from one crisis to the next off the pitch in recent times.

They released a statement on Monday to confirm that they were launching a collective dismissal procedure for all of their players, in a last-ditch bid to cut costs and attempt to avoid financial insolvency.

The club acknowledge that this is the last resort in order for the club to retain its status in the Spanish second tier, as administration would force a relegation into the regionalised Segunda B.

Malaga were relegated from La Liga two years ago and have made the headlines for all the wrong reasons since, with it emerging earlier this year that club owner Sheikh Abdullah Al Thani and his family owe the club €7.3m in loans and credit lines.