Sturm Graz insolvent
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ByEurosport
Published 23/10/2006 at 18:46 GMT
Austrian club Sturm Graz have filed for insolvency due to debts of up to 8.6 million euros, it was announced on Monday. The former league champions have, however, asked permission to continue fulfilling their domestic fixtures.
FOOTBALL 2006-2007 Bundesliga Austria Sturm Graz logo
Image credit: Imago
"We filed for insolvency this morning as well as for partial discharge of our debts and for a permit to continue playing," said a club employee, who declined to be named.
Graz spent heavily on players when it took part in the Champions League between 1998 and 2001 and said last November it had debts of 5.7 million euros and needed to plug a 2.0 million euro hole this year.
According to figures released on the club website on Monday the total debt has since risen to 8.6 million euros, although the club is disputing some 3.2 million euros arising from a players' life insurance scheme.
The clubs assets have been estimated at around 3.4 million euros, leaving a potential shortfall of 5.2 million euros.
In a news conference on Sunday, Sturm Graz President Hannes Kartnig said the club had spent a lot of money since first reaching the Champions League, mentioning the transfer of Ghanaian Charles Amoah.
The midfielder became Graz's record signing when they paid around 3.9 million euros to Swiss club St Gallen in 2001.
State broadcaster ORF reported that a decision on whether the club, due to celebrate its centenary in 2009, could continue to play would be made in eight to 10 days, citing the bankruptcy court.
Graz, who were Austrian champions in 1998 and 1999 and also won the Austrian Cup three times in the last decade, are sixth in the 10-team premier league.
They drew 0-0 with Mattersburg last weekend and their next scheduled league match is at Ried on Saturday.
Kartnig said the decision to file for bankruptcy had not been an easy one.
"This must be the toughest step I have had to take in my entire career," he said.
Kartnig added that he would not step down for now, but would be ready to leave once the club's future was secured.
"I am not going to leave a sinking ship," he said. "I hope we will get out of that cul-de-sac."
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