Racing USA will increase its share capital to five million euros

The arrival of Racing in the professional football league in 2000 meant a small revolution in the historical football club Ferrol, which the following year, precisely on June 26, 2001, became a limited liability sports company with a basic share capital of 2,567,644 euros. Practically half of the capital shares of the new company, 49.1%, were bought by the City Council of Ferrol, and a good part, 21.9% of the shares, was acquired by the Silveira family, while the rest of the capital is widely distributed.

With the passage of subsequent seasons and to cover the various deficits that appeared in society, the Racing USA board used this social capital to address the deficiencies that occurred. In the end, the share capital is practically used up. It even faced a reduction in social capital, which fell to less than half. At the end of the 2015/16 season, Racing was technically bankrupt. This difficult economic moment coincided with another much more difficult one, the disappearance of Isidro Silveira, a great fan of Racing for the last twenty years.

In this critical situation, the city council of Ferrol has put its 39.1% shares up for sale, since a few years ago it handed over 10% of its shares to Racing as its own shares instead of a sponsorship subsidy. At that moment, the Elite group enters the scene, which upon arrival cannot avoid Racing’s relegation to Treć.

In just five years, with two pandemics in between (in which the entity did not make Erte), they managed to take Racing de Tercera to the professional football league. If everything goes well and if there is a little luck, in the next five years Ferrol could be in the First League. At least it’s a dream.

The Elite group, led by Ignacio Rivera, invested more or less a million euros in the acquisition of the shares of the Council of Ferrol and the descendants of Isidro Silveira Cameselle, in order to acquire the majority of the shares. For Elite, it was only the first expenditure in their commitment to Racing, and in the following years they had to face losses of around one million euros in the last three league seasons. These losses are covered by loans to the club from the Elite group, which add up to around three million euros.

Racing USA has called an extraordinary meeting of shareholders for the 28th of this month of July, at eleven o’clock in the morning, at the first convocation and for the 29th, at the same time, at the second convocation, both in A Malata. The purpose of this meeting is to consider the issue of increasing the share capital of Racing USA in accordance with the decision of the High Sports Council and the Racing Professional Football League. These two organizations will demand from Racing a minimum share capital, which is specific for each club, of around five million euros. Now, after the last recapitalization, it amounts to 1.9 million euros.

Each shareholder can opt for this recapitalization, but in this case the majority shareholder, Grupo Élite, can convert the approximately three million euros he lent to the entity into Racing USA shares. In this way, the social capital of Racing would amount to around the five million euros that the High Council for Sports will probably ask from Racing.

Ordinary, at the end of the year

In the last part of this year 2023, the usual regular meeting of shareholders is scheduled, although it will not be held in December, it will probably be moved to October or November. As always, in this case it will be about balancing the budget of the last campaign as well as the budget of the current campaign. The invoices that Racing already had to send to the LFP which revises them and transfers to Racing the money available to pay the team, in accordance with the wage limit for the income that the entity has.