Authorities agree to wipe out debts of Spanish club Las Palmas

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The Segunda B club will be free of debt thanks to the local Gran Canaria sports council, which is expected to sign an agreement with the club to pay off its EUR 21 million debt over the next 20 years. The debt amount was set at a meeting of creditors last month.

The deal involves the council agreeing to sponsor the team for EUR 1.2 million a year from July of this year until June 2027. Various banks helped secure the deal, agreeing to pay fees associated with the debt that amounts to EUR 435,000 a year.

Only an extraordinary set of circumstances will stop the debt from being paid off, such as board members being convicted of crimes, or if the club is forced to close because of “serious sporting, tax or administrative indiscipline.” However, the agreement does not make the club’s stadium, Gran Canaria, football-only, an earlier objective of the club’s board.