The number in itself is terrifying, but the lack of control from the authorities (AFA) is even more worrying.
There is an administrative law in AFA that states that clubs with their accounts in the red will not be allowed to buy or loan any new players, until they come out of that situation.
The law also calls for suspension to those clubs who are not managed properly and with transparency.
Looking again at the opening statement of this article, you will come to the conclusion that the book has not been thrown at those clubs, as they are still buying and loaning players, and have not been suspended.
Some of these clubs have had meetings with all their creditors and made plans to pay them, but their debt has increased after that commitment rather than decrease.
The executive committee of AFA, headed by Julio Grondona, has many times specified that although the administrative laws are there in black and white in paper, they have been “unable” to enforce them.
A couples of weeks ago the National Government paid AFA $225.000.000 for the last three months of the program called “futbol para todos” (football for all), which is the rights to televise live football on terrestrial channels.
That means that AFA will share amongst all the clubs some $875.000.000 from now to August 2012.
Before we embark on a look at someof the clubs' debts, we should note that up to the end of the financial year (June 2011) AFA accounts are on credit, showing a final balance of $29.560.437.
However, this balance does not show the loans that the association has made to the clubs.
The fact that the clubs owe AFA $478.209.736 explain why the federation is unable to suspend or punish the clubs. AFA is their main creditor.
River Plate, appears as the club with the biggest debt of them all with $220 million, however the current Presidency has just declared a profit of $90 millions this year, meaning they are getting on top of the situation.
Independiente, where new authorities have just been voted, follows them with a debt of $190 million. But their problem is only beginning. The new President, Cantero, has said that, even if one of the rich Russian who buy clubs in England came in today and paid the debt, in 7 years time the club will have exactly the same debt as they are, at the moment losing $600k a month.
San Lorenzo has a debt of $150 million, and has shown over the years that they have no idea how to reduce it. However they keep appealing to rich and famous fans to contribute money to buy players. Which is not great, as the club still has to pay the players wage bill, which San Lorenzo are renowned for “forgetting” to do.
Also with a debt close to the $150 million we find Gimnasia y Esgrima de La Plata (playing in the Nacional B at the moment), that curiously, have not called for any meeting with their creditors just yet, but surely will have to do so very soon.
Racing also had elections recently, and all the candidates made campaigns aiming to keep the base of the team that had a really good tournament, and showed potential to fight for the title.
However, when Mr Cogorno, who ran as part of the governing party, won, he kind of changed his discourse.
He started saying that Racing needed to at least sell one player to be able to refinance their debt of $132 million.
The current board of Newell’s Old Boys took the club over from Eduardo Lopez (one of Grondona’s best friends) with a terrible debt. Their actual balance is $90 million in the red, but have started legal action against Lopez (president for 14 years) for the “disappearance” of $79 million from the club’s safe.
More from the Nacional B. The terrible case of Ferro Carril Oeste, who are in the middle of a legal battle to avoid Bankruptcy. In this case, one of the many people the club are suing for mismanage of funds is football agent and entrepreneur Gustavo Mascardi.Incredibly one of the case Judges who asked for the club to be sent under, is now being sued by Ferro for having business interests with Mascardi as well.
Also Rosario Central with debts of $76 million and many lost legal cases, are facing an uncertain future.
One step below that we find Comunicaciones, a very traditional club, that has been declared bankrupt and is now privately owned, instead of been controlled by its members.
A giant from Cordoba, Talleres, who have been declared bankrupt in 2004, have now been given more time to pay their $15 million debt (while they have been declared bankrupt, because they are paying their debt, they are still allowed to remain operational)
These are only some examples, but there are many forgotten clubs from the provinces who are also fighting for their own existence, in a country where in football; everything seems possible apart from financial controls.