Xamax deal falls flat

Neuchâtel Xamax football club are once again facing a troubled financial future following the withdrawal of a proposed rescue package.

The marketing company, IMG Switzerland, announced on Tuesday that it was pulling out of its deal with Xamax, just a week after the plan was announced.

IMG had originally offered to buy a majority share in the struggling club if the Neuchâtel side succeeded in avoiding relegation and if the local government agreed to modernise the club’s stadium.

Now, however, IMG’s Swiss branch says it does not have the necessary money to meet the team’s budget. IMG Switzerland’s international parent company, meanwhile, has said that the proposed deal is too regional for it to become involved.

Tuesday’s announcement was the second major blow for the Xamax board since the start of the year. An earlier agreement with Italian businessman Gian Paolo Bonora collapsed in January after the two parties failed to reach agreement on the details of their planned deal.

Swissinfo with agencies