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La Liga Clubs Slash Tax Debt By €420m In Three Years

barcelona-la-liga-titleSpanish football clubs have slashed their tax debts to around a third of their 650 million euros ($720 million) apex from three years ago, La Liga officials said on Tuesday.

First and second division clubs have a cumulative 230-million-euro debt to the Spanish government, with six clubs — Atletico Madrid and Espanyol of La Liga and Valladolid, Mallorca, Zaragoza and Elche of the second tier — responsible for over 70 percent of that sum.

In addition to aiming at shortening the deficit in 79m euros more by the end of the 2016/17 season, the professional football clubs in Spain are targeting 2020 as the date to be debt-free as a whole.

“These numbers are a reflection of the current financial healthiness of Spanish football,” said Javier Gomez, the general director of LaLiga.

“The debt reduction achieved by clubs other than Real Madrid and Barcelona has been enormous.”

The assistant director of the Spanish Superior Sports Council (CSD), Fernando Puig, praised the policies enforced by the association presided by Javier Tebas.

“[In 2013] the situation was critical, half the teams were insolvent and the overall debt was skyrocketing,” Puig said.

“Spending clearly outweighed revenue.”Fortunately, the policies put in place by LaLiga have produced outstanding results that we could have hardly imagined four years ago.”