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€541m debt behind Ozil to Arsenal as Real Madrid could face administration, says director

Carlos Mendoza has been speaking of Real Madrid's financial woes ... suggesting they are not being taken seriously by Florentino Perez.

Real Madrid had a busy summer in the transfer market, in both the arrivals and departures lounge.

They brought in the likes of Isco, Asier Illaramendi and Gareth Bale for an exorbitant amount of money - while big names such as Gonzalo Higuain and Mesut Ozil leaving the club.

The two players mentioned above, who left for Napoli and Arsenal respectively, were indeed transfers that surprised many.

Both are seemingly top talents, but were considered surplus to requirements at the Santiago Bernabeu.

Or they just had to balance the books.

Real might make more money in a year than any team on the planet, but they also spend more - and according to former director Carlos Mendoza, the money they spend is money they don’t have.

Despite breaking the world record transfer fee this summer by buying Gareth Bale from Tottenham Hotspur - the club are said to have massive debts, according to Mendoza.

Mendoza was reportedly banned from speaking about the issue at a recent assembly of club delegates - but has now spoken to Diario AS about the club’s financial situation.

“The main thing is that the club’s debt is €541m … Florentino only recognises the net debt, which is what is due exclusively to the banks, at about €90m. But then, Madrid has more debts than with the banks - they have them to players, to clubs, to sporting organisations, with governments, suppliers.’’

He went on to comment on the sale of Mesut Ozil to Arsenal, which was a must in regards to trimming their spend this year.

“We have had to sell to offset the spending, like with Higuain... Ozil cost little and has been sold for a large fee. That impacts positively on the accounts, but the enormous expense has seen the accounts continue to accumulate.’’

So Arsenal have benefitted from a serious financial situation that Mendoza clearly feels is a ticking time-bomb.

In fact, he even suggested the club is at risk of administration such is the financial woe they face.

‘’There is a risk that the club could be converted into SAD status. If the debt becomes unaffordable, it would require capital injections. Another way would be enter into voluntary administration…”

Arsenal don’t care however, if it means getting Mesut Ozil, they will be more than happy to see Madrid’s accounts struggle.

image: © Ronnie MAcdonald

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