Lto Ministry of Economy of the Generalitat Valenciana has confirmed Valencia that will not extend the deadlines of the ATE -Strategic Territorial Action, legal figure created to the construction of the new stadium and the demolition of Mestalla in advantageous conditions for the club – as he had decided, September 13, and now in response to resource Presented by Anil Murthy on October 13.
In its resolution Economy insists on the validity of the ATE until 2025 and admits the possibility to request an extension, but he dismisses the club’s appeal for reinstatement as the phase 1 without there are circumstances that justify not only this delay but the fact that the works of the enclosure are paralyzed for almost 13 years.
And what could those conditions be that could sustain an extension of the ATE? Basically what the club can demonstrate that it has the necessary funding to present a reliable plan to restart works and not having to stop them to completion. The key date -que not cited in writing although reference is made to the possibility of the club receiving this injection of capital- it’s december 10 when LaLiga has planned that the clubs approve the agreement with the CVC investment fund, which would allow the club that has aat an amount of about 100 million euros to be spent in the stadium. But it remains to be seen.
The new resolution of Economy notes that at the time when Valencia, as a promoter, requested an extension for the first time (April 16, 2021) “the stoppage in the execution of the actions contemplated therein extended to a period of less than two years, However, the Proposed reorganization entails an additional five-year extension, which distorts the term stipulated for the total execution of the ATE ande departs from the foundations that justified its approval “, expresses forcefully.
In this regard – the resolution continues – it must be taken into account that the ATE, as a whole, extends its validity until August 17, 2025 and that this period, as well as those of each phase, “They were set in terms of maximums.”
The writing, signed by the Minister of Economy Rafael Climent dismantles the argument that sought to have greater weight in the Valencia appeal, referring to the economic crisis derived from the pandemic: “Los economic effects derived from Covid-19 about football clubs cannot justify the inexistence of external sources of financing to undertake the actions of the ATE, to which he insistently alludes to the club, since prior to the pandemic, it also did not have these, after five years of validity of the ATE “, responds Economy.
There’s a key section in the writing referring to LaLiga agreement with CVC to which Valencia alluded in his appeal: “As of today, neither has such income been quantified nor materialized. Therefore, it cannot even be determined if it will cover the necessary budget to undertake and finalize the construction of the stadium “, answers Economía, with which it is understood that it may be an open door at the moment in which the club can present it as a guarantee of being able to finish the works and, thus, request an extension from the ATE.
