It will be made with 30% of the shares through a loan of 1.2 million and will provide another 8.5 when the Government complies with the agreement
Racing Santander has signed an agreement with PITMA by which the Cantabrian business group will take 30% of the club’s shares through a loan of 1.2 million euros. The agreement also includes the co-management of the club’s advertising for 10 years and a loan of 8.5 million, which would cancel the debt with the Treasury and “ensure the viability” of Racing.
But these last two points are “conditioned” to the fulfillment by the Government of the commitment to contribute four million in four years through the purchase of advertising media of the Racing.
This was explained on Thursday by the president of the club, Manuel Higuera, in a press conference in which he wanted to convey to institutions and political parties, that for the viability of Racing to be “definitive”, and only lack of approval in the 2017 budgets of the necessary items to materialize the agreement and the awarding of the corresponding contracts.
“That the institutions and the parties understand that there are thousands of people pending of them for this,” Higuera stressed, adding that “we know that the Government is determined to carry it forward.”
The president of Racing has estimated that once approved the regional budget
The procurement files in the different councils and public companies, eight in total, “can be delayed in the order of a month.” In this way, the club expects that in February the debt with Hacienda will be completely canceled.
Meanwhile, the “firm” loan of 1.2 million will provide the Racing with the “financial coverage” necessary to reach that point “without tensions of treasury”. In fact, Higuera has ensured that the payment of the first installment of the agreement of creditors, scheduled for December, is “guaranteed.”
The 1.2 million PITMA loan will be transformed into capital through a capital increase to be approved at the December shareholders meeting. The acquisition of 30% of the shares of the Racing will mean the departure of three current members of the council – “no one knows who” – and the entry of three representatives of PITMA: its owners, Alfredo Pérez and Pedro Ortíz, and Cristóbal Palacio, lawyer of the group.
This is a “substitution by coptation”
that will take place at the meeting in which the board of directors will approve the call for the shareholders’ meeting, expectedly on November 8. The advertising part of the agreement establishes the co-management of the club’s advertising rights with Alpe Creativa, a company of the PITMA group, for 10 years at a rate of 850,000 euros per year.
Higuera has stressed that the agreement with PITMA means, on the one hand, “the absolute professionalization of the economic-financial area” of the club, “something essential”; the entry into the shareholding of “one of the most important Cantabrian business groups”; and “eliminate uncertainty in the short and medium term.”
“The only thing I hope,” he said, “is for the investment to come out (to PITMA) profitable, not the following,” said Higuera, who pointed out that the “advertising campaign” of the Government “does not represent 30% of the that is going to invest in the Racing this business group “.
At the same time, he has defended that invest “in the best showcase of Cantabria, which is the Racing”, with the purchase of advertising media at the rate of one million euros per year for four years, recovering 4.5 million “the first day” , “it is an investment that in any other facet would not have nor discussion, but around the Racing and the policy the demagogies continue appearing”, it has lamented.
Debt with the Tax Agency
When asked by the media, the president of Racing has said that “it does not arise” as a possible scenario that the government does not fulfill its commitment. If that were the case, “we would return to the situation we are in, we would continue in absolute uncertainty and if Racing rises, it would have to resign because of the debt with the Tax Agency”, he said.
Also, Higuera has trusted that other groups in the region are encouraged to enter the Racing. In fact, the club hopes to expand the number of council members to 12 in December, to give access to other companies. “Nobody doubts that we are back, and that Racing, which is conjuncturally in 2ªB, will return to the first division and will regain its status as a great club that should never have lost,” he stressed.