Liga de Quito was one of the few clubs that did not propose an economic readjustment to its players and applied the formula of salary retention to alleviate the financial crisis caused by the coronavirus; however, the situation is "unsustainable," according to board member Esteban Paz, who is seeking to change what was established with the team and implement new agreements.
"The economic result of recent months has not been worrying, it has been catastrophic. We have not generated income for three months," Paz said in an interview with Mundo Deportivo, hence the decision of the Azucena leadership to change the agreements reached with the team in April, with retentions of between 20 and 50% of salaries, depending on each player's income.
As it is a general issue among LigaPro institutions, the white-and-blues have received a "brake" from sponsors, with contracts suspended and even canceled. The only fixed income for clubs now is the payment from GolTV for television rights, although only "half" of April has been paid, as indicated by Paz.
A change, or "bankruptcy"
"We are unbalanced, economically affected. Players with the salary retention formula have not lost their income, but at this moment within Liga's complete financial collapse, we must sit down with them to see how we restructure this, because if we continue like this (with retentions), we continue to generate liabilities, and by the end of the year the club will be bankrupt, with no possibility of payment," Paz pointed out.
The board member acknowledged that "the players signed contracts and Liga has obligations with them, but there comes a point where the circumstances are so harsh that we will have to change the format."
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In this regard, the club is "obliged to restructure salaries," noted the player, who hopes for the "understanding" of the team for the change in the salary treatment formula with the players.
"Hopefully we can empathize with them, some will understand the situation and others won't, but we have to explain and socialize a proposal that could even come from them so that it is not something imposed, because that generates demotivation," he expressed.
Paz revealed that for any attempt to reach an agreement with the players, the first thing is to have the club's income for the following months defined, "mainly with sponsors, because we know that ticket sales for this year have ended and that completely destroys the budget we drew up, and now we do not have the capacity to defend it," explained the Azucena board member.
Transfer market on hold
Players like Uruguayan forward Rodrigo Aguirre and Ecuadorian center-back Franklin Guerra were being considered for a transfer; however, with the economic situation in football and in the world in general, negotiations are not progressing.
In May, Paz suggested that one option for managing the crisis was to negotiate players abroad. "It is the moment for a planned and urgent reduction to avoid severe economic problems that could later affect the sporting aspect," he stated.
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But aside from the intentions of improving the club's situation and expediting player transfers, "commercially, it is not a good time to enter the market because the contracts abroad are not what we are hoping to obtain; all of that is distorted and I do not have clarity on how to face the situation," Paz emphasized.
The situation is still complex for negotiations, with tournaments abroad suspended and pressing economic concerns, so "if a real offer does not come, these players will stay at Liga and we will have to find a way to solve everything," concluded the board member. (D)