(May 19, 2010): Real Mallorca Enters Bankruptcy Administration

Real Mallorca, which finished fifth in the recently concluded La Liga season, applies to go into bankruptcy administration. The club has a debt of €85m (US$103m). Majority shareholder Mateu Alemany comments: “Over the past two years, Mallorca has suffered a very complex economic situation, with serious financial problems and an inability to meet its commitments. This is a legal instrument that enables Mallorca to see the future in another way—to have a budget structure that has logic and controls debt, to take stringent budgetary measures to bring spending in line with earning capacity.” According to a recently published report into Spanish football finances (see May 18, 2010), Mallorca made a loss of €5.2m for the 2008-2009 season, on revenues of €28.1m. Its playing staff budget for the 2009-2010 season was €34.6m. [Forbes, 5/19/2010]