Espanyol owners going ‘all-in’ financially – Survival and Joan Garcia sales key as liquidation is mentioned | OneFootball

Espanyol had the second-lowest salary limit in La Liga this summer, with Los Pericos theoretically not meant to spend more than €8m on the cost of their squad – a sign that their finances are not in the best shape. Los Pericos are set to gamble with them though.

Since 2020, when Espanyol have been relegated and promoted twice, they have an operating loss of €67m, and Relevo say that the Rastar Group that owns the club have loaned them €40m in order to improve their cash flow. Sponsorship money is down, with Espanyol in legal battles with various stadium name and shirt sponsors, as is their TV income over recent years.

President Chen Yansheng is hoping to issue shares in order to help increase their salary limit, and give Espanyol the chance to make additions in the January transfer window. He is desperate to see the club stay up, and allow them more time to fix the finances, or sell the club. If they do go down again, they are currently in 18th with a game in hand, then there is a real risk of liquidation, despite the denials from within the club.

After increasing the club’s capital, Espanyol need sales of €15m to take place, with goalkeeper Joan Garcia primed to cover that himself. He has a €30m release clause, and attracted interest from Arsenal during the summer. The situation is critical though, with as many as 16 players out of contract next summer, including star forward Javi Puado.

Their sources cite poor management both on and off the pitch as the culprit for their tricky situation, with the Rastar Group having invested €167m over the last decade. If they were to go down, Espanyol would be forced to start from scratch with their squad, and the value of the club would drop dramatically, as would their chances of coming back up.

Espanyol have long been one of the more frustrating cases in Spanish football for their fans. Los Pericos possess a prime location in Barcelona, a good stadium which they own, and a strong academy, but have been unable to turn it into consistency or success under the Rastar Group. In Puado or Garcia, they have quality at both ends of the pitch this season too, and will be hoping they can lead them to safety.