Zaragoza avoids drop but faces bankruptcy

Zaragoza, which won its battle to remain in Primera Liga on the field last season, may yet find itself fighting on another front after applying for permission to go into receivership. The Aragon-based club, it seems, is paying now for the excesses of its president, Agapito Iglesias. After the limited outlay policy of the previous president, Alfonso Soláns, who decimated the team through the sale of David Villa and Cani, among others, another inverse policy has dogged the club and now resulted in its ruin.

On Wednesday, with crippling third-party debts of 93 million euros and a total of 130 million euros, Zaragoza presented a voluntary request for protection from its creditors "with the objective of safeguarding the interests, the heritage and the future viability of the club." Zaragoza stated the reason for its fiscal woes "is the consequence of relegation three years ago." It did not mention, however, that the current squad is the costliest in the club's history, requiring 39 million eurosto assemble and with six players earning between 1.8 and 2.3 million eurosa year.

The judge now has 30 days to decide whether the club will be placed in administration or if it is able to renegotiate its debts. In that case, Iglesias will remain in his post - something he is not too keen on as Zaragoza's shares are up for sale - together with the bankruptcy administrators assigned to the club. "I believe that bankruptcy proceedings are the valid formula to solve these economic problems," Iglesias said in an open letter to Zaragoza's fans.

Another club in difficulty is Racing Santander, whose directors are at loggerheads with the owner, Ahsan Ali Syed, who has failed to make the past two payments on the club's 7 million-euro debt to the regional government of Cantabria. On Thursday, as a guarantee against a loan extended by Credit Suisse, Cantabria took control of Racing's shares and outgoing regional premier Miguel Ángel Revilla called on the executive to save the club from administrative relegation. "I do so not only as a member of Racing, a small shareholder in the club or as a fan, but as a citizen because I believe Racing is an asset we must preserve. And I ask the government to give all assistance to the team."