ABANCA and Dépor reach an agreement to refinance the Club’s debt and sponsor the stadium

29/06/2017 19:20

This afternoon, ABANCA and RC Deportivo presented the agreement in which the financial institution has provided 45 million euros, which have allowed the Club to cancel its privileged debt with Spain's Inland Revenue this morning, and will allow the works in the stadium announced yesterday in the agreement with the City Council to go ahead, as well as the extension of the sponsorship contract which, among other things, will include the new commercial name of Estadio ABANCA-RIAZOR.

The operation, which allows RC Deportivo to strengthen its sporting and institutional project, has a 15-year treasury plan associated to it, with which the Club will be able to face the annual financial burden with more ease.

The agreement will provide liquidity to the branquiazul entity. RC Deportivo will be able to raise its salary cap and expand the possibilities in the transfer market to form a more competitive team. It will also provide resources to carry out the stadium’s renovation schedule, which will adapt it to the current needs of elite football.

In addition to the financial agreement, Dépor and ABANCA have signed a new sponsorship agreement, extending the scope and duration of the current one. The most significant aspect of it is that the Riazor stadium will be commercially known as Estadio ABANCA-RIAZOR for the next eight years, until 2025.

Once the roof renovation is finished, Deportivo will undertake the improvement of the stadium’s lighting and facade, however, from this season, the new benches embedded in the stands, the new bars and food and drinks stands, or the creation of a hospitality and corporate work area in the Tribuna stand will become a reality.

In addition to this immediate improvement plan, Deportivo will develop a global action plan on the ABANCA-RIAZOR Stadium in order to make an extensive improvement of its exterior. The Club will develop a project of a progressive revamp of the facade, coordinated with the works of the roof renovation which the council will undertake.

Deportivo will also renew its infrastructures, accesses and accessibility, and will implement a technological innovation plan that will maximise the purchase and sales of tickets, identification through mobile applications and communication with members and supporters.

After the most important financial operation in the Club's 111-year history, the agreement with ABANCA opens up a new chapter for Dépor.

RC Deportivo’s chairman, Tino Fernández, said that "life does not give many special days and for me this is one of them. I cannot be happier and I think that all the people who love Deportivo have to be the same.”

Tino Fernández revealed that 43 million euros were paid to Spain’s Inland Revenue this morning to cancel the privileged debt, and he recalled that "in the last three years we have paid 82 million euros to Inland Revenue.”

Regarding the stadium’s “renovation commitment” with the City Council that was announced yesterday, Tino Fernández stated that "it will be possible thanks to this agreement with ABANCA".

Regarding the greater possibilities of signing new players, the Deportivista chairman acknowledged that "it is obvious that there is an improvement, but we have to speak with LaLiga".

ABANCA’s chairman, Juan Carlos Escotet Rodríguez, said that for him "it is an honour to contribute to the club's future possibilities".

"We are aware that supporting Deportivo also strengthens our relationship with its fans around the world," he said, before reaffirming that "this agreement will give the Club the economic muscle to perform the operations it needs.”

Finally, he announced that ABANCA will grant facilities in case of a hypothetical relegation to Second Division "I am convinced that Deportivo will not go down, but if it does, there will be an interest-only period”.