San Lorenzo, a prominent Argentine football club, faced scrutiny at its recent assembly of partners, , as members approved the balance sheet for the period between , and , with reservations. The approval came after a vote of 27 in favor, 19 against, and one abstention, highlighting internal divisions regarding the club’s financial health.
The core of the concern revolves around outstanding debts totaling $3,301,783,690. The external auditor flagged a lack of sufficient appropriate evidence regarding these debts, hindering a definitive assessment of their update and repayment terms. This deficiency, according to the auditor, prevents a reasonable determination of the balances. The debts represent 17.6% of the club’s total loan portfolio and 5.6% of its overall liabilities.
The assembly directed the current Board of Directors to investigate the conditions surrounding the update and repayment of these commitments, and to verify the formal requirements for their registration, if applicable. This directive underscores a desire for greater transparency and accountability regarding the club’s financial obligations.
Further complicating matters, the assembly requested the Board to ascertain the status of ongoing audits related to several specific debts. These include investigations into loans from Fondo Inversión Privado AIS, Mutual Financiera/Scaglione, and cases involving Robert Piris da Mota/Buenagol, Lucas Menossi, Fabricio Coloccini, Ignacio Piatti, Torito Rodriguez, managerial loans, Security Level 3 debt, and Banco Macro. The assembly seeks confirmation whether the accounting firm Quian y Asociados and the legal firm Cangueiro Ruiz Abogados have completed these audits, and if so, to receive the resulting information.
Beyond the financial review, the assembly also addressed administrative matters. Licenses were approved for Ulises Morales, Dante Mónaco Gutiérrez, Valeria Carta Moglietta, Axel Schale, Vanesa Sánchez Hermida, Jonathan Lirosi, Marlene Mansilla, and Victoria Gabriel. Resignations were accepted from Alfredo Zoloa, Santos Zuberbuhler, Guillermo Buzzo, Juan Manuel Vignali, and Claudio Colombo. Lucas Granucci, Diego Torregrosa, and Carolina Truzzi were approved for their positions, although Granucci and Torregrosa submitted written resignations that will be addressed at the next assembly.
The situation at San Lorenzo reflects broader challenges facing football clubs globally, where financial sustainability is increasingly under the spotlight. While the club’s approval of the balance sheet, albeit with reservations, indicates a willingness to address the issues, the significant debt and the need for further investigation suggest a period of financial uncertainty. The focus on auditing and transparency is a crucial step towards restoring confidence among partners and stakeholders.
The specific debts flagged by the auditor – encompassing a range of financial instruments and legal cases – point to a complex financial landscape. The involvement of private investment funds, mutual financial institutions, and individual player-related cases suggests a diverse set of creditors and potential legal challenges. The Board’s investigation into these matters will be critical in determining the club’s long-term financial stability.
The resignations of several assembly members, coupled with the conditional acceptances of new members, hint at internal disagreements regarding the club’s direction. This internal friction could further complicate the process of addressing the financial challenges and implementing necessary reforms. The upcoming assembly will be a key moment for resolving these issues and charting a course for the future.
The approval of the balance sheet with reservations is not uncommon for organizations facing financial difficulties. It signals that while the overall financial picture is accepted, there are significant concerns that require immediate attention. The emphasis on independent audits and transparent reporting is a positive sign, indicating a commitment to addressing the underlying issues and restoring financial health. However, the scale of the debt and the complexity of the related cases suggest that the road to recovery will be long and challenging.
The case of San Lorenzo also touches upon the broader issue of financial regulation in football. As highlighted in recent securities litigation updates (Gibson Dunn, September 4, 2024), scrutiny of financial disclosures and governance practices is increasing across various sectors. While the specifics of San Lorenzo’s situation may not directly involve securities litigation, the emphasis on transparency and accountability aligns with the broader trend of heightened regulatory oversight.
