American investment group make formal offer for Espanyol

RCD Espanyol, Power8 Stadium

Walking a financial tightrope, a takeover could wipe away all debts at the Spanish club.

According to a report from Diario GOL, leading shareholders of RCD Espanyol - Daniel Sanchez Llibre and Ramon Condal - are negotiating the sale of their stake in the Spanish club, following the receipt of a formal offer from a wealthy American investment group.

Between them, the two former Espanyol presidents retain the largest individual stake at Espanyol - thought to be around 32% - with both having sought ways to encourage investment in the ailing club, for a number of months.

Also covering the story, sports newspaper AS has indicated via their sources, that the American investors are willing to launch a buyout of stakes held by other shareholders.

The financial situation at Espanyol, like many Spanish clubs, remains delicate. The Catalan side currently have an outstanding debt of €43 million with the Spanish tax office, which is expected to be reduced to €36 million, by the end of the current season.

However, with finances so restricted, there have reportedly been problems making payments to the tax office and other creditors, meaning the club has continually faced the risk of heading into administration.

The board at Espanyol announced that the net debt at the end of last season, amounted to a sum of €134 million in total.

Along with the purchase, the American investors have apparently offered to wipe clear all debts, upon their takeover, whilst also offering a guarantee that a further €100 million would be placed into the club coffers.

Such a move would significantly boost both the financial, and competitive fortunes of the club, improving their chances of regularly pushing to finish amongst the European positions in La Liga.

All parties concerned are said to be in "advanced negotiations" and close to agreement, following meetings held in the Spanish capital, Madrid, over the last week.

Given the recent agreement amongst La Liga clubs, and at long last, with the Spanish government backing, clubs are set to benefit from a fairer distribution of TV money, with a centralised agreement more akin to that of the Premier League in England.

Espanyol and their current president, Joan Collet, were amongst those taking the fore, making the strongest appeals for a fairer distribution of TV funds.

The potential of stronger revenues, and improving financial health amongst Spanish clubs, could lead to further interest from overseas investors, as has been observed in England.

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