RCD Espanyol social capital extensions approved in General Shareholder's Meeting
The RCD Espanyol Board of Directors chaired by Chen Yansheng continues to show its firm commitment and faith in the club, as reflected in the General Shareholder's Meeting held this Monday in the RCDE Stadium where they approved the two extensions of proposed capital. In a complex situation due to the economic crisis as a consequence of COVID-19 and because of the relegation to the second division, the white and blue president, Chen Yansheng, has decided to inject more funds into the club to prevent the squad from depleting, and avoid being conditioned in this summer market.
“Today, I want to share with our shareholders how that commitment translates on an economical level for giving stability to the club during a difficult time due to the financial restrictions of the competition. In the 2020/21 season, we had the misfortune on a sporting level of managing a relegation, and we experienced the economic impact of COVID that affects all sports organisations. Our club has also experienced a drastic reduction of income which led to the generation of an important deficit, and all this seemed to point to us closing our activities on 30 June. Due to this, and as an example of my absolute faith in the viability of the club and its potential, the Board of Directors has made the decision to capitalise the loans made to the club in order to give it greater stability, and to compensate part of the negative diversions in the cost of the squad during the 21/22 season. Despite the difficulties that will still be left to resolve, I am sure that with the approval of this decision in this shareholder's meeting, we will take an important step in the financial competitiveness of our club in the next campaign, and I am convinced that if we find stability again in the first division, and return to the path of financial equilibrium, our scenario in the mid-term is exciting,” Chen Yansheng summed up.
On this matter, RCD Espanyol Director General and CEO, José María Durán, clarified that there will be no need to sell in this summer market. “We have some important losses caused by the pandemic and the relegation, and the chairman has made several efforts since the beginning. We said that the main points were the squad and our social multitude, and these shares supply our strategy. This decision will give us more stability”.
Before this shareholder's meeting, the club’s social capital was €127,701.714 with a total number of shares of 21,283.619 of which their nominal value is 6 euros and the Board of Director’s idea is that once concluded, the social capital will rise to €165,739.218 with a total of 27.623.203 shares.