Valencia has secured a €50million loan to pay its players through the end of the season.
Valencia, who won the Spanish league and UEFA Cup in 2004, received the loan from local business group Fomento Urbano de Castellon.
Valencia president Vicente Soriano said there was no other choice if the club was to avoid bankruptcy
“Last June, we didn’t think it was necessary and that there were other possibilities worth exploring,” Soriano said. “No other viable way going forward presented itself.”
Valencia managing director Javier Gomez met with the players on Friday to explain the situation.
Valencia failed to pay its players for the past two months, while construction of a new stadium was been halted due to the club’s deficits, which were listed at €740 million before the start of the season.
After an impressive start, Valencia has dropped to sixth in the league, five points adrift of a Champions League spot. Spanish internationals David Villa and David Silva are expected to lead the player exodus from the club in the summer.