Technical bankruptcy: the economic consequences of relegation to the Second Division
Relegation wouldn’t be a mere sporting setback, but rather a financial death certificate for the Sánchez-Pizjuán . Internal reports at the club’s offices are devastating: the current financial crisis would make survival in the second division impossible.
Television revenue and sponsorships in the Second Division would not cover even a small part of the structural debt, which would put Sevilla FC in a position of immediate dissolution.
A club never need to go Down. Its never a good thing and especially not for Sevilla. Even how bad we believe We are, going Down is the absolute worst that can happen as it would mean the spending would be even lesser and the only remaining good players will leave. You wont see Sevilla back for years if it happens, so dont hope for it.
Im so worried about going Down. It would destroy this club. My only hope now is that the players actually have some pride and fight at least 2 wins in the last games. But tbh, there is not a single game left I can see us winning. Not one. If you can’t beat Oviedo, you wont beat anyone. I dont see Elche losing every game there is left but I could see us doing that. We needed those wins vs Oviedo and Valencia. We lost both. This club would not come back anytime soon of going Down.
I just hope some of the players have the guts and pride to change this. Where is the fight? That is the LEAST you can ask for. We can hate on the owners all we want, but Sevilla should be better than this. The players have a massive responsibility for this.
I’m still so very confused with the debt situation. First it was a little bit, then it was $300 million…then recently I heard a lot of progress has been made and very close to being gone, then apparently it’s going up again? No actual answers for me
The players are a product of the board. They have left us with this shite and depressing squad.
I don’t blame the players as much. In fact despite all the shit, the players have done well to keep us up other seasons and even get us to 31 points and have a chance of survival now.
I feared a Valladolid type season but thankfully we not that bad.
However, when you have a corrupt/terrible board, no money, massive debt, fans at odds with board and each other, awful squad, manager changes constantly, poor managers there is only so much fight you can have.
I believe the players have tried but we not very good and eventually even the fight can be knocked out of you when you up against all that.
Funny enough I feel this Atleti game at weekend could be one of our better chances. One of the only times we won in 2026 since January was Athletic club who were in Europe and had champions league game.
Atleti have 2 gruelling matches with Barca either side of us. We must pray they tired, distracted and put in a shocker against us. I feel any team well rested apart from maybe levante away or espanyol who in free fall we will struggle.
I look at levante away, Atleti at home (distracted/tired) and espaynol at home. If we can’t do anything in these we finished.
I want to do a financial analysis of the club. Somehow last years financials (2024) were 5x worse than (2023). Plus they added a long term debt to the mix. I don’t see how the club gets out of this debt, unless we can restructure the club and sell some assests if we have any. Even the sales of Juanlu, Vargas, and whoever else doesn’t get us close to break even. It’s ridiculous.
I know squat all about financial analysis so I turned to AI for help.
Here’s what they came up, feel free to shoot their conclusions and sources down:
Sevilla FC is currently navigating a period of severe financial distress, transitioning from a consistently profitable model to one marked by heavy recent losses and rising debt. While the club reported €214.3 million in revenue for the 2022/23 season, it faced a net loss of €81.7 million in 2024 and total debt reaching €330.8 million. [1, 2, 3, 4]
Key Financial Performance Indicators
Persistent Net Losses: Following the pandemic, Sevilla recorded three consecutive years of losses totaling approximately €85 million after tax. By the end of 2024, annual net profit had fallen to -€81.7 million.
Revenue Breakdown:
Broadcasting: Reached €163.9 million in 2022/23, largely driven by European competition participation.
Match Day: Increased to €20.7 million following the end of COVID restrictions.
Commercial: Grew to €29.7 million, representing 15% growth year-over-year.
Escalating Debt: Total debt surged to €330.8 million by 2024. Transfer debt—the amount owed to other clubs for player signings—more than doubled between 2018 and 2023, reaching €104 million. [1, 2, 3]
Operational Challenges
Salary Cap Restrictions: In a drastic move by La Liga, Sevilla’s salary cap was slashed to just €2.5 million for the 2025/26 season due to ongoing financial instability.
Squad Value & Transfer Model: The club’s historically successful “buy low, sell high” model has struggled. Profit from player sales dropped to €35 million in 2022/23, one of its lowest levels in a decade. Recent strategies shifted toward older players with high wages and low resale value, impacting long-term sustainability.
Infrastructure Investment: Despite financial woes, the club is moving forward with a €350 million redevelopment of the Ramón Sánchez-Pizjuán Stadium. This project, intended to turn the stadium into a year-round business hub, is supported by €40 million in CVC funds. [1, 2, 3, 4, 5]
Recovery Roadmap
To ensure survival, Sevilla secured a €108 million ten-year financing agreement led by Goldman Sachs to guarantee liquidity. The club aims to reduce losses to €3 million in the 2025/26 season and reach operational break-even by 2026/27. [1, 2, 3]
I further asked for why there is a massive difference from 2023 to 2024:
The following factors drove the sharp decline from the €19.3 million loss recorded in 2022/23:
1. Sporting Performance & Revenue Drop
Poor European Campaign: Sevilla suffered a premature exit from European competitions, which significantly slashed expected broadcasting and competition income.
La Liga Struggles: A disastrous domestic season—finishing in the bottom half of the table—further reduced merit-based TV rights distributions.
Revenue Decline: Total revenue fell from a record €214.3 million in 2023 to approximately €182.3 million in 2024. [1, 2, 3, 4, 5]
2. Unsustainable Squad Costs
High Wage Bill: The club maintained a “record high” first-team wage bill, which exceeded €200 million during the peak of their financial crisis.
Failed Ambitious Model: Sevilla’s gamble to invest heavily in expensive, established players to compete for the La Liga title backfired when those players underperformed, leaving the club with high salaries and low resale value. [1, 2, 3, 4]
3. Collapse of the “Buy Low, Sell High” Model
Stagnant Transfer Profits: Historically, Sevilla relied on substantial profits from player sales to balance their books. In 2024, the club struggled to execute major sales, with profit from transfers reportedly falling well below the levels needed to offset operating losses.
Devaluation of Assets: Due to poor performance and aging players, the market value of the squad has decreased, making it difficult to generate the liquidity required to stay within La Liga’s strict salary limits. [1, 2, 3, 4]
4. Cumulative Debt Pressure
Rising Interest: Total debt surged to €330.8 million. The interest payable on short-term loans and transfer debt (owed to other clubs) increased, further draining cash reserves.
Negative Equity: By October 2024, the club’s own funds had fallen to negative €65 million, a situation described as “dangerous territory” for a professional sports corporation. [1, 2, 3, 4]
I agree. It probably hopium. I’m hoping Simeone rests most of his players for the 2nd leg. If he still plays a relatively strong side we will find it very difficult still. The problem is I’m not sure we good enough to take advantage. I hope they prove me wrong.
Spanish media reports have revealed that the initial offer from Vive Eleven Capital and Sergio Ramos to acquire Spanish club Sevilla includes a clause to reduce the offer’s value by 25% if the team is relegated to the second division. Information detailed in the letter of intent signed between the parties indicates that this measure aims to protect the investment value of the deal should the club lose its place in La Liga, according to ABC de Sevilla.
The initial financial offer valued the Andalusian club at approximately €450 million, which includes recognized net debts of €88 million. However, the potential for the team’s relegation would reduce this total offer by more than €100 million. Under such a scenario, the estimated value per share would drop from the initially proposed €3,500 to just over €2,500, thereby closely linking the investment aspect to the club’s sporting performance.
Negotiations for the club’s change of ownership are ongoing despite the complex technical circumstances Sevilla currently faces. The financial accounts are undergoing a comprehensive audit by the investing company to meticulously analyze the financial situation before proceeding with further steps. Additional meetings between representatives of the involved parties are expected in the coming days to continue drafting the final agreement details and scrutinize the terms of the proposed acquisition.
Recent meetings have seen a reduced presence from Sergio Ramos, who has maintained a lower profile compared to the initial opening session. Meanwhile, negotiations are still on track to reach an agreement that satisfies shareholders. These developments reflect a desire to establish a flexible financial framework that can respond to potential variables that might affect commercial returns and television broadcast rights should the club’s sporting status change.
Unsurprisingly due to the unsustainable “buy experienced (old), don’t sell, rank high” strategy during Monchi and Lopetegui era which we fall dramatically when all the mans Lope relies on leave and Monchi did a disastrous job replacing them.