Valencia: Lim traces an economic project until 2029

The plan is based on the New Stadium and the sale of players. The six points, included in the annual accounts report.

Peter Lim's Valencia will present a ten-year financial project at the Shareholders' Meeting on December 13. Specifically until the 2028/2029 season. This is reflected in his 'Consolidating Report'. The project is based on a series of milestones to be fulfilled that, in truth, do not differ from the usual ones of a football club, that is, income from competition and television rights and, in turn, purchase and sale of soccer players.

Lim bases its project on six conditions, one of them being the transfer to the New Stadium and the sale of the current Mestalla stadium. Throughout the 52 pages of the 'Memory' Valencia explains the movements made during the last 12 months for the sale of the Mestalla plot, although, as of the closing of the report, the negotiation is still pending compliance with some milestones that are already out of time (although still valid, because the opposite has not been notified, the pre-agreement with the ADU Mediterráneo cooperative) .

The project of Valencia de Lim will continue to rely on the sale of soccer players. In this sense, your budget will include each year a revenue item for "alienation of players based on history". In other words, Valencia maintains as its principle its culture of being a selling club.

The budget for the 2019/2020 fiscal year, which will be approved at the Shareholders' Meeting, includes an item for 'disposal of assets' of 39.3 million (sale of players). As reflected in the economic report, during this year, which runs from July 1, 2019 until June 30, 2020, Valencia has already raised 14 million transfers. In recent years, the way the club acts is to close sales once the season is over and before June 30 (Cancelo or Net, two examples) .

Other two pillars of his financial project in Valencia are based on competitions and television rights. Valencia went from 7 million (2017/2018) to 66 million (2018/2019) in terms of competition income. The 59 million difference is what goes between just playing in the League and reaching the semifinals of the Cup and doing so in the first phase of the Champions League, reaching the semifinals of the Europa League and raising the Cup title.

In addition, the two fourth places that Valencia has achieved consecutively in the League have had an upward impact on their income from television rights for that percentage that the League distributes in relation to the classification of each club in the last five championships. According to the income statement: Valencia entered through retransmissions 65 million in 2017/18 and reached up to 78 million in 2018 / 19,

The Lim project, however, is aware of the failures of the years before the arrival of Mateu Alemany and Marcelino, in which Valencia finished 12th in the League and did not compete in Europe. Thus, in his 'Memory' is collected with subtlety: "Sports are considered alternately to play European competitions based on the history of the Club in recent seasons."

And how to balance the budget if Valencia does not meet its economic expectations? As stated in the document: "Proportion of purchase and sale of players based on competitions in which it is disputed." Valencia in the current year, whose budget will amount to 183.7 million, with a staff cost of more than 102 million (for the 93 of last year and 67 two years ago) .

The last point on which he bases his ten-year project Lim says: "Obtaining the necessary financing to guarantee the capacity of the Parent Company to fulfill the aforementioned financial projection". In this regard, during several sections of the 'Report', the commitment by the top shareholder to "facilitate the financial support necessary for the Group to continue its activity" is stressed and recalled .

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