SD Huesca level playing fiscal field deal



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Government of Aragón to acquire and operate Estadio El Alcoraz Image: SD Huesca on Facebook

The Segunda División team SD Huesca has reached an agreement with the Government of Aragón for the future acquisition of the former’s home ground – the El Alcoraz Stadium in Huesca, Aragón, Spain. The agreement also places thrust on the club maintaining fiscal discipline and responsible financial management.

‘SD HUESCA’ stated that the deal, initially valued at €24.4 million (£21.16m/$27.83m), was approved recently by the Government of Aragón’s Governing Council and includes the transformation of the stadium into a sports and cultural venue.

The above agreement pertains to the General Action Protocol for the purchase and sale of the El Alcoraz Stadium.

‘SD HUESCA’ further stated that the above deal best reflects the Aragonese Government’s goal of collaborating in the promotion of sports and ensuring a level playing fiscal field among the clubs of Aragón.

The SD Huesca is a Spanish football club based in Huesca in the autonomous community of Aragón (Spain). Founded in 1910, the club competes in the Segunda División or LaLiga 2, the Men’s second professional association football division of the Spanish football league system.

The 9,100-capacity El Alcoraz Stadium is a football stadium in the City of Huesca, Aragón, Spain. It serves as the home ground of the Segunda División team SD Huesca.

With the above agreement the Government of Aragón has set the stage to acquire the facility currently owned by the SD Huesca. Once the acquisition exercise is through the Government of Aragón will be in a position to provide financial muscle to the El Alcoraz Stadium which will pave the way to establish the venue as a leading multipurpose facility of the region which will be able to hold the soccer matches as well as cultural activities.

The funds obtained from the purchase and sale process will not be used for the current expenses or dividend distributions. They will become part of the club’s assets and will be used entirely to offset the losses accumulated in the previous years as well as adhere to the LaLiga’s (the highest level of the Spanish football league system) financial regulations.

The above step will help the SD Huesca to attain robust financial health in keeping with the LaLiga’s 1:1 Rule (allowing every Euro saved or earned to be reinvested) and will ensure the club’s financial stability.

The LaLiga’s Financial Fair Play (FFP) Rules, often using a 1:1 Rule, are designed to ensure the clubs are economically viable by limiting their spending to their income and requiring responsible financial management. Under these rules the clubs are given a player registration budget based on their income and costs and they must generate enough savings from sources like the player sales or wage reductions to register new signings, particularly if they are over their limit. The goal is to prevent excessive debt, ensure long-term survival and control club spending.

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