Administrator considering a capital increase to secure Malaga's long-term future

José María Muñoz.
José María Muñoz. / SUR
  • José María Muñoz knows that the club needs increased solvency if he is to be able to carry out the next phase of his job

With Malaga finally able to comply with La Liga's spending rules with the last-ditch ERE redundancy procedure for the majority of their high-earning squad, eyes now for judicial administrator José María Muñoz are on securing the club's financial situation heading into the future.

With debts still unpaid and income now considerably lower (more than a quarter down because of the pandemic alone), Muñoz is now looking at medium- and long-term solutions and is leaning towards a capital increase.

This, however, is a highly complex and risky process should it not be completed successfully. The club's current circumstances, with it unclear who will own what percentage of the club after legal proceedings are completed, make it even more difficult to develop this initiative. Ousted club president Sheikh Abdullah Al-Thani currently owns the majority of shares but could have a portion seized by the courts. The BlueBay hotel group, meanwhile is entitled to just under half of Al-Thani's shares according to a court ruling (though this decision is under appeal and is not yet final).

Al-Thani's shares (49 per cent of which are claimed by BlueBay) are held by NAS Spain 2000 and this is why the administrator requested that control of this company be seized by the courts. The judge finally agreed to this on Wednesday.

This could pave the way for a capital increase that would allow for the arrival of new investment, whether internal or external, in order to fund the club's push achieve its aims - ultimately to return to the top flight.