Benfica report losses

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The SuperLiga club has reported EU 5.8m losses for the year finished in July 2005, a 27% decrease from last term’s EU 7.9m losses linked to a drop in overall costs of almost 6%. Operational costs dropped 5.9% to EU 50.2m while income was down by 2.9% to EU 46.1m. Gate receipts were also down, although this came as no surprise because the previous season takings were higher than average due to the move to the new Esatdio da Luz stadium. General profits were on the slide by 9% on the previous year, mostly because of institutional bank debts.

The club expects to break even at the end of the next campaign, without relying on selling players to boost income streams. Profits are largely made up of gate takings, sponsorship, advertising and TV broadcasting deals.

Spanish Espanyol restructure debts
The Primera Liga club has taken EU 55m loans with various banks in order to restructure their debts and finance construction of their new stadium. The banks issuing the loans are La Caixa (EU 12.4m), the Institut Català de Finances (EU 27m), the Caixa Catalunya (EU 6.6m), the Banc Sabadell (EU 6m) and the Caja de Ahorros del Mediterráneo (EU 3m). The development follows the renewal of a broadcasting deal with TV3.

The club managed to write off its EU 32m short term debt, while restructure the remainder over a longer period of up to 15 years. While EU 12m were secured for the construction of the new stadium, another EU 9m are to be used as provision for funds for the tax authorities.