Soccer in crisis: Zaragoza bankruptcy plea accepted by judge

A Zaragoza mercantile court on Tuesday admitted Real Zaragoza's bankruptcy plea and assigned three judicial administrators to oversee the club's day-to-day running. Zaragoza, which escaped relegation from Primera División on the final day of last season, has debts totaling 110 million euros.

The voluntary bankruptcy proceeding launched by Zaragoza president Agapito Iglesias is the largest yet by a Spanish soccer club, superseding that by Real Betis. Zaragoza's viability plan estimates that it can honor 93 million euros of its outstanding debt.

Like so many club owners in Spain, Iglesias took control of Zaragoza in 2006 on the back of promises to steer the club into the Champions League within two seasons. Instead, the side was guided into Segunda División in 2008 and although it returned to Primera at the first attempt, Iglesias has blamed the descent for Zaragoza's financial plight. To make matters worse, several clubs have taken the legal route to force Zaragoza to pay outstanding transfer fees.

Zaragoza is the latest victim of Spanish soccer's financial meltdown, joining Rayo and Hércules (both in pre-bankruptcy proceedings), Betis, Albacete, Cádiz, Granada, Poli Ejido, Mallorca, Recre, Xerez, Córdoba (all under judicial control) and Las Palmas, Levante, Sporting, Málaga, Alavés, Celta, Real Sociedad, Alicante and Murcia (all in the hands of their own boards of administrators) in appealing to the Bankruptcy Law.

Elsewhere in Europe only Portsmouth of the English second division has done likewise.