Valencia Institute for Competitiveness (Ivace) faced a setback when Fundesem’s offer to lease part of its Alicante building to the European University was rejected, and a contract termination followed. The debt remained, and the business school found itself with few viable options. The center’s president, Cayetano Sánchez Butrón, urged the business community to push for partial payments and renegotiations with the autonomous body. Without such concessions, the school could face bankruptcy with an uncertain outcome. Historically, when Alicante employers were asked to bail out an institution, the results were rarely decisive. Fundesem’s own lack of income showed that many businessmen preferred sending their children or employees to foreign centers.
Liquidation or the separation of the center from its current facilities also created administrative hurdles. The Ministry of Economy needed to identify a new destination for the property, a choice that even the district administration found complex. One option gaining traction was the Alicante Chamber of Commerce, whose president, Carlos Baño, announced at Elche that the European University opposed using the building since it remains a private center, a position aligned with Ivace’s concerns. It was clear that the same line of reasoning would apply to Ivace’s proposal as well. [Citation: Ivace sources]
Nevertheless, any potential plan had to respect the guiding priority repeatedly expressed by Economy Minister Rafa Climent: Alicante should have a business school, a capability the region considers essential for its commercial fabric. The issue of branding would depend on the Conselho’s legal and technical evaluations. In practical terms, whomever occupies Ivace’s property—Fundesem, the Chamber, or another party—should dedicate part of the facilities to this purpose. Since 2019, Climent has stressed that as a native of Alicante, the state needs a business school. On the same day the Ivace board’s decision was announced, the minister reiterated, “I am from Alicante, and there is a strong sense that Fundesem can succeed.” [Citation: Regional government statements]
– Cayetano Sánchez Butrón, president of Fundesem, was photographed in a moment of transition.
origins
In the mid-1960s, a group of businessmen promoted what became known as Alicante Center for Higher Studies to address the region’s lack of university-level education for economists and managers. In 1978 it re-emerged as Fundesem and grew steadily, culminating in a 1992 agreement with the City Council and the Generalitat to secure suitable headquarters and a property provided by the Jesuits. The Consulate transferred land on Calle Deportistas Hermanos Torres, and the district administration, through Impiva, built a campus that would also house Fundesem’s facilities. Since then, the school paid annual rent. The expansion years relied on support from savings banks CAM and Bancaja, which helped raise staff education levels and sustain the institution. The real estate crash, followed by the collapse of these financial assets, exposed vulnerabilities in the model. [Citation: historical records]
As the economy struggled, attracting students became harder. Employers noted that Fundesem’s titles faced limited verification by universities, a factor in challenges sustaining partnerships. The center did sign an agreement with CEU for several years, but payments problems eroded that alliance, turning the university into a creditor as well. [Citation: institutional reports]
Alicante fails again
By that point, the situation had deteriorated. Fundesem stopped rent payments to Ivace in 2011 and looked to expand to other cities such as Murcia, or attract Latin American students, but these efforts did not reverse the trend. In March 2017, Ivace filed a lawsuit to recover outstanding sums. The matter dragged on for nearly two years, until a management transition led by Cayetano Sánchez Butrón negotiated a debt reduction to about €1.267 million. The agreement included lowering the annual rent from €150,000 to €95,000 (still €120,000 with VAT) and an extra €60,000 per year to settle debts. [Citation: court records]
Sánchez Butrón built a broader base, creating a philanthropic protection mechanism funded by a €5,000 contribution and future recovery through education. The school shifted focus toward digital education and formed a new agreement with a consulting and training firm to offer additional services. Despite some improvements, the resurgence faced backlash from local business and society, and the pandemic further disrupted plans. The Aquora deal was limited to in-company training, while unpaid rent continued, increasing the debt with the Consell to €1.65 million. [Citation: project summaries]
Fundesem undertakes to finish the course with a circular for students and staff.
That is when Sánchez Butrón pursued a strategic move. European University appeared ready to close a deal on July 31 last year, allowing the private center to teach some health-related degrees and support Fundesem’s master’s degrees in exchange for €400,000 per year. The arrangement would fund the annual rent and accelerate debt repayment. A limited company would host the educational activity, with plans to sell 49% of the capital to raise €490,000, though only half of that target had been achieved. The business community faced difficulties funding the effort again. [Citation: financial negotiations]
Ultimately, a condition of the agreement required approval from the authorities. Alicante City Council consented, but the Consell opposed transferring public space to a private center due to concerns about competition with public universities. The decision favored rejecting the deal and moving to terminate the contract while pursuing the outstanding debt. [Citation: government records]
Fundesem leaders weighed next steps, awaiting clarity on Ivace’s demands. Options included requesting immediate payment or submitting a bid in the public contest. Regional authorities awaited the school’s actions before deciding, but all signs pointed toward continuing use of the building by a business school, regardless of the ruling entity. [Citation: official statements]