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Depor seek financial protection

Deportivo la Coruna have become the latest La Liga club to seek protection from its creditors using Spain's 'Ley Concursal'.

• Blog: Depor not reaping rewards

The Galicians, currently approximately €99 million in debt, and struggling in 19th place in the Primera Division, announced confirmation of the move via the club website on Thursday afternoon.

"At 2PM today Thursday, Real Club Deportivo, in the person of its legal representative Miguel Taboada, presented the necessary 'ley concursal' documentation to the authorities in A Coruña."

The step had been heralded in advance by club president Augusto Lendoiro at December's club AGM, where the long serving executive vowed to find a solution to their financial woes. Depor owe a reported €37 million to the Spanish taxman, who has reacted by embargoing the its TV revenues. The Spanish Players Union (AFE) have also reportedly urged the club to make use of the provision, to protect its members' salaries.

Lendoiro sacked Jose Luis Oltra as coach a few days after December's AGM, with the club bottom of the table. His successor Domingos Paciencia got off to a winning start by overcoming Malaga 1-0 last weekend. Paciencia has been allowed to make two new signings this week, albeit without spending any transfer fee, with right-back Silvio arriving from Atletico Madrid on loan and veteran midfielder Paulo Assuncao signing on a free transfer.

Ley Concursal protection is similar to administration in the UK, and allows clubs to strike deals with creditors to write off a portion of the money owed, without suffering any sporting sanction. Eight of Spain's top flight sides are currently benefitting from this provision.

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