Normally reliable sources close to Spain's central bank are claiming that Llanera faces bankruptcy. A central bank official in Madrid stated, 'There is growuing evidence that smaller real estate companies and housebuilders who launched projects late in the cycle may have problems.'
This follows a warning by Professor Michael Ball to the Investment Property Forum on Thursday night. The professor of real estate at Reading University stated that second home owners in the Mediterranean facing a property correction because of the credit crisis.
Savills, the estate agency, have conducted a survey which claims that the most common motive of purchasers is to make a profit through capital appreciation on the model of the British housing market. This makes markets even more precarious, given that buyers may have overestimated the rental returns they could make from these properties.
Estate agents in Spain say that demand for second homes on the Mediterranean coast where Llanera operates has been softening for two years. Many have reported a virtual standstill since May after a series of corruption scandals and a collapse in property-related shares.
It might be suggested that to lose one sponsor through financial problems is a misfortune, to lose two is carelessness. Having been through this experience before, the club is better placed than many to tackle it a second time. But it is an off pitch distraction we could do without.
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