Levante UD consolidates a responsible management model
The club bets on the value of its squad to accelerate its recovery
In an exercise of maximum institutional transparency, the financial director of Levante UD, Carlos Ausell, appeared before the media to detail the economic situation of the entity with absolute rigor and clarity. During his speech, Ausell emphasized that the club has prioritized fulfilling its obligations to public administrations and has made progress in responsible resource management to strengthen the entity's solvency. Additionally, there is a firm commitment to clean up the economic foundations with a real commitment to society.
Carlos Ausell explained that the club is using all financial tools at its disposal to seek the most advantageous scenarios. One of these has been a detailed understanding of all figures through a thorough diagnosis of the accounts. This step has been crucial for the judicial approval of the Payment Restructuring Plan (PRP), a fundamental milestone that provides legal security and protects the club's roadmap, ensuring that commitments are met in an organized manner. The plan required debt capitalization, which has strengthened the net equity following the contribution of 13.8 million euros by Bizas Trading Capital SL.
Emergence of previous liabilities and responsible debt management
Transparency in the diagnosis has allowed the identification of 16 million euros in debts and contingencies that occurred before the 24/25 season and were not recorded. This emergence, combined with the search for new financing and accrued interest, has led to a nominal increase in debt of 20 million euros. Ausell emphasized that this increase is due to the lack of solvency in past financial years and the detection of unrecorded debts. However, the club has prioritized protecting its sports assets: if players had been sold, the financial result would have been close to zero and cash pressure would have been alleviated, but real financial recovery was chosen over immediate accounting balance.
A fundamental pillar to accelerate recovery is the value of intangible assets, which the current balance sheet does not reflect - according to their real market value - in compliance with accounting standards. Thanks to the new player signings (with an investment of almost one million euros in the 24/25 season and more than 4 million euros in the 25/26 season) and sports management, the market value of the squad has increased. Ausell revealed that there is already a guaranteed minimum value for these assets and that their fate will be decided at the end of the season.
In this context, remaining in the league is emerging as a key tool: while it is not an indispensable condition for viability thanks to the strength of the PRP, it would act as a powerful accelerator to achieve economic objectives.
Equity Strengthening and Capital Increase
As of today, Levante UD is not in a dissolution situation as of June 30, 2025, and expectations rule out the risk of non-compliance for 2026. Essential payments such as salaries and taxes are being met and are expected to continue to be met until the end of the season. Additionally, other payments related to the normal development of activities are being gradually addressed in order to reduce debt with all suppliers.
On the other hand, on February 10, the approval of a capital increase is included in the agenda of the Shareholders' Meeting. If approved by the meeting, this operation will allow shareholders to maintain their percentage of participation and will provide essential direct liquidity which, if successfully completed, and if all shareholders acquire at least the same shares they already hold, could reach up to 8 million euros.
The Sports City: A Driver of Resources and Investment
Regarding infrastructure, the club focuses on the Sports City as its most significant real estate asset. The project has generated great interest in the market, and the club is seeking a strategic "travel companion" for a development that is fully compatible with the entity's identity. This infrastructure is not just a real estate project but a resource driver to diversify income and consolidate a cutting-edge real estate portfolio that will also improve the long-term financial situation.
Profit outlook for the 25/26 season
Under this rigorous approach, the outlook for the 2025/2026 season foresees a substantial improvement with a profit forecast of 18 million euros. This result will be the outcome of increased revenues (from television, subscriptions, commercial…) combined with strict adherence to LALIGA's Financial Fair Play. Additionally, there will be a reduction in structural costs resulting from the restructuring of operating and personnel expenses.