Just over a decade after reaching the Champions League quarter-finals, Malaga have completed one of Spanish football's most dramatic turnarounds by returning to La Liga, capping a journey through financial ruin, relegation to the third division, and a grassroots revival built on youth and community spirit.a matter of minutes from a Champions League semi-final in April 2013, when they led Borussia Dortmund 2-1 before conceding two stoppage-time goals to Jurgen Klopp's side. That defeat marked the beginning of a steep decline for a club that had briefly threatened to break into Spanish football's elite bracket alongside Barcelona, Real Madrid and Atletico Madrid.
Under Qatari owner Sheikh Abdullah bin Nasser Al Thani, Malaga had assembled a talented squad featuring Santi Cazorla, Isco, Ruud van Nistelrooy and manager Manuel Pellegrini. But once Pellegrini departed for Manchester City and Isco left for Real Madrid, the club's fortunes unraveled. A Uefa ban from the Europa League for financial fair play breaches, mounting debts, and eventual relegation from La Liga in 2018 followed. In 2020, a regional court removed Al-Thani over allegations of misappropriating funds, and both European and international arrest warrants have since been issued against him and his sons, with prosecutors seeking prison sentences totaling 14 and a half years.
With court-appointed administrator Jose Maria Munoz overseeing the club from 2020, Malaga survived on loan signings and free transfers, but the financial strain proved too much. In 2023, the club dropped into Spain's regionalized third division — a level nicknamed "el pozo" (the well) for how difficult it is to escape. "I was at the last game in the second division against Ibiza. Both teams were already relegated and it was like a funeral," recalled season-ticket holder and podcaster Matt Harrison.
Despite fears the club might collapse entirely, a squad built largely around academy graduates and local players secured an immediate promotion back to the second tier, sealed by a dramatic extra-time winner from Antonio Cordero against Gimnastic Tarragona. The achievement reignited passion for the club across the city. "Disgracefully, in Malaga there have always been lots of Real Madrid and Barcelona fans," said journalist and supporter Jose Luis Sabatel. "But when Malaga flew lower, an enormous quantity of 'Malaguenos' became 'Malaguistas.'"
The following season brought further transformation. After a difficult start under Sergio Pellicer, the club turned to reserve-team coach Juan Francisco Funes, a man with no prior experience in professional football and who had even considered returning to teaching before his appointment. Funes revitalized the team, drawing on his background as an educator to inspire a young squad, reportedly referencing films including The Good, the Bad and the Ugly and Kung Fu Panda to convey his messages. His man-management and tactical shift toward attacking football, combined with a wave of homegrown talent such as prolific striker Chupe, winger David Larrubia and defender Diego Murillo, sparked a remarkable turnaround. The players became affectionately known as "los bichos," while the team itself earned the nickname "Funesbuque."
This season, Malaga finished fourth in the second division and faced Almeria — a club with a vastly superior budget — in the promotion play-off final. After a goalless first leg, supporters lined motorway bridges to send the team off to Almeria, where goals from Chupe and Larrubia secured a 2-1 victory and confirmed Malaga's return to La Liga. An estimated 185,000 fans celebrated in the streets afterward. "An entire generation had grown up after the club's Champions League years knowing little more than financial turmoil, sporting disappointment and uncertainty surrounding the club they loved," said Radio Marca journalist Juanje Fernandez.
With limited resources, Malaga have made modest additions ahead of their top-flight return, including loan signings Carlos Dotor and Juan Cruz. They are widely tipped for relegation and face daunting opening fixtures against Atletico Madrid and Real Madrid. Yet given all they have overcome, few among the Malaga faithful appear worried. As Sabatel put it: "Malaga's story is beautifully convoluted, with plenty of plot twists and the most enchanting ending. From now on, we can only enjoy."
Based on reporting from BBC Sport.