Valencia stadium project hit by financing woes

Valencia President Manuel Llorente sought to reassure fans of the cash-strapped La Liga club on Friday after problems emerged in the financing plan for the project to build a new stadium.

Valencia were forced to halt construction of the "Nueva Mestalla" in early 2008 but reached an agreement with Spanish lender Bankia late last year that appeared to put the project back on track.

Llorente told a news conference called to address the stadium issue that club officials were "working with Bankia to seek solutions" and the goal remained "to complete the new stadium".

"I want to send a message to the fans of calm and confidence in the club," he said. "The latest events do not affect the foundations of this club.

"I cannot name a date for when work will start up again, there is a lot already completed, plans, models, the only thing remaining is to restructure the financial side."

Valencia are one of many Spanish clubs to have suffered severe financial difficulties in recent years as they try to remain competitive on the pitch while struggling to pay soaring wages and transfer fees.

The club racked up debts of more than 500 million euros before being bailed out by the regional government who agreed to guarantee a loan of 74 million in August 2009.

They have also been forced to sell off prize assets such as Spain quartet David Villa (Barca), David Silva (Manchester City), Juan Mata (Chelsea) and Jordi Alba (Barca).

"It makes me green with envy seeing Silva at City, Jordi Alba at Barcelona, Mata at Chelsea but the reality was what it was," Llorente said.

"It's still going to be very hard for us to put this reality behind us and we'll have to sell more players but luckily we'll be able to do that thanks to the good work done by the technical secretary [in finding replacements]," he added.

Valencia mayor Rita Barbera told reporters on Friday that Bankia chief Jose Ignacio Goirigolzarri had explained to her that some conditions in the financing agreement had not been complied with.

She said she was unaware of the exact nature of the problems.

"What I do know is that it's bad news and we'll have to wait and see what decisions Valencia takes," she added.