The lawsuit filed by the Libertad VCF Association reveals that the players were accepted by the highest shareholder as a pledge, as well as supplemental to President Anil Murthy’s high salary, housing, school or international medical insurance.

Libertad VCF and lawyer for Valencia before the judge.
Libertad VCF and lawyer for Valencia before the judge.Microsoft

Although it was not in the meeting of shareholders, but in the commercial court No. 1 where Dr. Valencia How the first loan that Peter Lim The club has been awarded Rs 16.5 million and four players have been guaranteed their return, as well as the salaries of their top officials, especially the president. Anil Murthy. The club released the information after a lawsuit was filed by the Association Libertad VCF in Courtroom 9 of the City of Justice, where it challenged and requested the board to cancel the loan agreement. Increase the salary of senior management and increase the number of shares required to attend the meeting: which went from 9 to 3,598.

Libertad considered that Valencia’s managers had created a “conflict of interest” to enter into a deal with the company. Loans with Meriton worth .5 16.5 million Bankia will have to face payment with the rights of four players of the first team as security. If the club does not pay, the footballer will collect the merit before the sale, so that anyone controlling the board of directors (Meriton) can decide to sell for their own benefit, the association has argued. .

To date, Valencia have never revealed who they are, but they have admitted in court that they were. Fernando Torres, Condogbia, Diakhabi And Gabriel Paulista. With the sale of the youth squad and the French midfielder, they were replaced Daniel Was And Gonalo Guedes.

As published by Valencia lawyer Fernando Badennes, the council chose to fund the mariton because of alternative proposals. caixabank This was more balanced, as it demanded an annual interest rate of 3.8%, part of the audiovisual rights and the rights of some players, that if they were sold, 25% of those sales would go to debt.

The lawyer who drafted the loan agreement, Joachim Sales, who shares an office with the secretary of Valencia’s board of directors, as well as a lawyer, German Cabrera, Meriton’s legal representative during the sale process, and in some cases, appeared in court. Judge. , The club itself, for which a conflict of interest could be proved, according to the plaintiffs.

The sale confirmed that the loan was quickly agreed to, which would cause Bankia to face repayment and “Terrible lack of liquidity” Of the club, which meant that the assessment responsible for each player was not determined. The position Libertad defended is that these guarantees were “outrageous” because the market value of these players was much higher than the loan capital. The lawyer “grants” the terms agreed between Meriton and Valencia for this credit that, in the event of a bankruptcy, the priority will not be collected but will be subordinate.

Of the 54.5 loans that Meriton made to Valencia after the last meeting agreed to raise capital, 43 million was invested, 16.5 items in the case and 38 others pending from the previous line of credit, with four more secured soccer players and 20% television. Rights. Also, at the December meeting, a change was made in the guarantee: the rights of Diakhabi, Paulista, Guedes and Wass (which were later sold) and four other unknown ones were released, but Meriton guaranteed that his debt would be repaid. To go The first five million from any footballer sales.

Half a million executive expenses in six months

Another issue that Libertad VCF wants to challenge is the remuneration received by the President Anil Murthy. In his presentation, Alvaro Sendra, a lawyer for the association, revealed the amount of salary 460,000 euros in total In addition to the annual, unlimited inclusion of supplements for accommodation or transportation, medical insurance, including their children’s schooling, return tickets from Singapore for their entire family, and international coverage. In addition, it determines the variable remuneration at the discretion of the Board of Directors which is not specified.

Its salary Kim KohIncluding the salary of the CEO until a few months ago 200,000 euros per year, House rent, car, two round-trip flights to Singapore and health insurance. Total, December 16, 2019 to June 30, 2020, The two top executives Valencia cost 505,000 euros.

Libertad defends that, given the extremely precarious economic context and the club’s low investment, these salaries approved by the board of directors are not consistent with the image of responsible administration. For its part, Valencia defended that they adhered to market standards and took examples Seville And Atletico Madrid, Valencia sports level comparable clubs in that 2019 financial year The lawyer assures that Sevilla pays about 1% of turnover and Atletico about 2%, while Valencia is at the bottom.

Board without shareholders

Finally, it claims that the amendment approved at the meeting of Article 11 of the Club’s bye-law will be repealed in order to increase the number of activities required to attend those meetings from nine to 3,598 “and exclusively to serve the interests of the maximum number of shareholders”.

That is what Libertad told the judge Only three of the 48,341 shareholders Del Valencia can attend meetings with their own shares, which they consider excluding small holders and create opacity even though it is compatible with rRepresenting 1×1,000 Capital companies are in law.

For Valencia, the sole purpose is to “simplify the organization, avoid costs and enable participation in remote processes”. The aim was to achieve better organized meetings from a bureaucratic and expenditure point of view, but also to facilitate grouping of shareholders for remote participation. And he thinks that goal has been achieved in terms of participation in the last assembly. “There were more shareholders than usual at the last meeting. Why? Because they were Grouped and represented By different people. With this change, shareholders will be able to vote with a single share, more than ever before. Efforts have been made to encourage greater participation through delegations. That’s how it happened, it paid off, ”said the club’s lawyer.

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