TVE reveals €716 million debt
Details
Juan Fernandez Gonzalez
| 28 May 2014
Spain's public network TVE has admitted it is facing financial difficulties, with its president Leopoldo Gonzαlez revealing that there is a €716 million hole in the network's accounts.

According to El Mundo, €388 million of this debt is related to the fall in property values over recent years. The rest is due to a structural deficit of around €100 million per year, driven by the network's financial model and high expenses.

Since 2010, TVE has not broadcast private adverts and has depended exclusively on the public budget and a media tax paid by the telcos. During last years of the financial crisis, the government cut the network's budget by around €700 million without making any major changes to its structure and financial model.

TVE is not expected to close down, as has happened with other public channels, for example in Greece, but it needs to find additional funds if it is to survive. Although it has not been confirmed, the media is already hinting at a new deal with the Ministry of Finance through which TVE would get an extra €100 million.

TVE's directors have also been criticised for spending more than they should. During the Champions League final broadcast last weekend, 96 members of its staff travelled to Lisbon, including several directors. In addition, the network has paid €39 million for the rights of the Spanish national football team during the qualification rounds for the Euro 2016 and World Cup 2018