Bankia, nationalised and bailed out to the tune of €18 billion, is now the owner of Valencia football club following a court ruling on Tuesday.
It all started back in 2009 when the Generalitat’s Valencia Financial Institute (IVF) issued a €75 million financial guarantee to the club against a €200 million loan from Bankia (then Bancaja) for the purpose of buying shares in the club.
The financial guarantee backed by the IVF was the last official act of former regional premier Francisco Camps, who left office in 2011 to fight allegations of corruption related to the Gürtel scandal.
The loan and its subsequent refinancing are the reason Valencia CF have been forced to sell off their best players each year.
Earlier this year, Valencia CF announced that it would be unable to pay back the loan and the regional government became 70% shareholder in the club and has already paid €4.8 million in interest on the outstanding loan.
However, a Valencia Administrative Court has ruled that this whole move was illegal and Bankia now finds itself owner of Valencia CF. Not only that, but as a result they also owe themselves €200 million.