Lima’s Valencia are finally not losing money… but still planning to sell players and cut wages in 2025 | Relief
Valencia Football Club has published its annual report, in which reductionism progressive, which is where Peter Lim leads the essence. Team Mestalla reduced his business in almost all its aspects: less staff costs (58.7 million, 13.8 million less than a year earlier), less TV revenue (60 million, seven less than a year earlier), less income from competitions (7M, five less than a year earlier). And the only point where his turnover has increased is in terms of fertilizers and partners (16.2 million, which is one million more than a year earlier).
Valencia, yes, within this concept of a smaller club has achieved a certain economic balance due to lower salaries, player sales and more, which led to the club being positive balance of annual accounts in the amount of 168,000 euros.. The club managed to end the year with a positive performance, and this aspect was key for Goldman Sachs to accept the financial loan it had already received from Valencia.
The problem with all of this is that while the team managed to wrap things up with positive numbers and improving “numbers”speaking in sports terms, then due to the above-mentioned abbreviations previously… and in the future. Because Valencia is in its budgets for 24/25 plans to again reduce personnel costs by 6 million.so you’ll have to continue we issue high salaries or do some kind of sale Considering that there is less and less in key depreciation (8M specifically).
Valencia’s budgeted revenue from the sale of players is 16 million, although a significant portion of the 30 million from the sale of Mamardashvili will be received in 2025 and could be included in the said budget.
In fact, the club in its reports in the concept ‘Impairment and results on disposal‘foresees enter 16 million eurosthis means that the object has pending enter this amount of money for the sale of football players during 2025. The advantage of this is that the club will still earn money from Mamardashvili’s transfer throughout 2025, which can be included in this concept. In fact, the club closed its annual reports without taking into account Mamardashvili’s income (30+5M), so that they could be included in the reports for 2025.
It is no less true that Typically, Lim “obliges” to sell a year in advance (2026 in 2025).The club could therefore find itself in the same position as last year: with a target to sell but no obligation to do so. Moreover, the club budgets are 6 million less than television revenues although the latter hopes to alleviate this with additional income from sponsors 5 million, which were budgeted.
Valencia cut its staff costs by 14 million this year and planned to do the same by 6 million next year.
Valencia, yes. improves operating results by EUR 6.3 million65% improvement, reduces net debt by 13.4 million. And increases its working capital by 1.4 million eurosalthough the latter remains negative. Club all this data will be disclosed at the shareholders meeting next December 19 at 12:00 in the Mestalla stands, as announced by Relevo.
Lim still doesn’t want to be a ‘big owner’ of the club, but gives financial breathing space
Peter Lim, until a few years ago, every time he lent money, he received it in the form of more shares, the last one being 35 million. He no longer wanted to “capitalize” it, that is, he did not want to be the “big owner” of the club by acquiring more shares. (currently 92%). The said loan matured in December this year, and while the largest shareholder has continued to implement the aforementioned roadmap, it has at least given respite to the club.
Because the club and Lim reached an agreement whereby payments to Peter Lim under the said loan There will be 70% of them in the next 3 years and the remaining 30% in July 2029..