What happens if San Lorenzo go bankrupt: three answers to the crisis | OneFootball

On Tuesday, the club was notified by the courts and must settle its debt with the Swiss fund AIS Investment Fund within five days to avoid ruin.

Now then, what does it mean to go bankrupt? The club emphasizes that for this to be declared, there must be a cessation of payments, that is, a situation in which the institution’s assets are insufficient to regularly meet its obligations.

For now, the Ciclón is not in that scenario: its employees continue to receive their salaries, despite the delicate economic situation and some delays with the professional squad.

And what does bankruptcy entail? Once declared, the courts appoint a trustee in charge of managing its finances. This figure takes control of the institution’s assets and income, which are used to settle outstanding debts.

The trustee has the authority to dispose of the club’s assets to generate resources, and has a period of three years to regularize the liabilities and avoid total dissolution or the auctioning of assets.

There are other cases of clubs that have gone bankrupt: the most well-remembered precedent is that of Racing Club, which went bankrupt in 1999. “Racing Club Asociación Civil has ceased to exist,” declared trustee Liliana Ripoll at the time. After that decision, the club was managed by the company Blanquiceleste S.A., which had ten years to lift the bankruptcy. The company also ended up going bankrupt, until years later the members managed to regain institutional control.

Other Argentine football clubs have also gone through similar situations. Ferro Carril Oeste went bankrupt in 2002 and was administered by the courts through a trust until it managed to settle its liabilities. Deportivo Mandiyú, meanwhile, disappeared in 1995 and was later refounded. For its part, Sportivo Palermo merged with other clubs and had to leave the AFA in 1984 due to lack of resources.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇪🇸 here.