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Barcelona are said to be on the verge of going broke
The Catalan club owes a total of €1,173 million in debt
according to El Mundo. Of
that, €730 million is said to be due in the short term, and worse, €266 million
of that is owed to banks before July 30th.
The lion’s share (€90 million) of that last part owed to banks
is owed to Goldman Sachs.
The wage bill reportedly occupies 74 percent of the club’s total
income, which is above the league limit of 70 percent. Revenues for 2018-19
stood at €990 million, but they fell to €855 million last year, due to the
coronavirus crisis. Expenses were barely reduced, on the other hand, going from
€973 to €955 million, which represents only a 2 percent decrease.
For the current fiscal year, Barcelona projects to have revenues
of €828 million against expenses of €796 million.
While the coronavirus crisis has hurt all teams in Europe,
Barcelona are said to be losing a lot more money than other big clubs. Experts
paint a worrying picture for the Catalan giants.
The financial figures at the heart of Barcelona news are
increasingly alarming and a report in El Mundo has given more context to the
numbers, claiming that the club are on the verge of bankruptcy.
The
club are €1,173m in debt, with €730m of that sum due in the short term while
€266m is owed to the banks by 30 June, of which €90m is owed to Goldman Sachs.
It
is also highlighted how the wage bill at the club still occupies 74 percent of
the club’s total income – a figure that exceeds the league limit of 70 percent.
Revenues
for the last normal season, 2018/2019, stood at €990m, but last year they fell
to €855m, which were down 14 percent. However, expenses were barely reduced by
2 percent, from €973m to €955m.
For the current fiscal year, the club expects to have expenses
of €796m and income of €828m.
Financial
analysis from @SwissRamble illustrates
the mounting problems that the Blaugrana have financially with spiraling levels
of debt and liabilities owed.
Read
more: Barcelona’s financial struggles: €820m of gross debt,
€1.4billion of liabilities
This
follows on directly from a report in La Vanguardia last week which outlined how
the Catalan giants must repay €420m in debt this year or face insolvency.
The question of whether or not Barcelona
Football Club will go bankrupt depends on resolving of the players’ salaries
payment problem. Sports commentators came to such a conclusion, describing the
negotiations between the club’s management and the players. Reducing wages by
30% is a necessary condition, which must be achieved by November 5. Otherwise,
the legendary Barcelona team will start the New Year with declaring bankruptcy
amount of € 97 million in early October. Now, according to the Spanish sources,
the team will have to cut the salary fund by € 190 million. The reason for such
a dire financial situation of the club is the pandemic, which disrupted the
usual rhythm of life and the program of sports events planned at the beginning
of the year.
according to El Mundo. Of
that, €730 million is said to be due in the short term, and worse, €266 million
of that is owed to banks before July 30th.
is owed to Goldman Sachs.
income, which is above the league limit of 70 percent. Revenues for 2018-19
stood at €990 million, but they fell to €855 million last year, due to the
coronavirus crisis. Expenses were barely reduced, on the other hand, going from
€973 to €955 million, which represents only a 2 percent decrease.
of €828 million against expenses of €796 million.
Barcelona are said to be losing a lot more money than other big clubs. Experts
paint a worrying picture for the Catalan giants.
The financial figures at the heart of Barcelona news are
increasingly alarming and a report in El Mundo has given more context to the
numbers, claiming that the club are on the verge of bankruptcy.
The
club are €1,173m in debt, with €730m of that sum due in the short term while
€266m is owed to the banks by 30 June, of which €90m is owed to Goldman Sachs.
It
is also highlighted how the wage bill at the club still occupies 74 percent of
the club’s total income – a figure that exceeds the league limit of 70 percent.
Revenues
for the last normal season, 2018/2019, stood at €990m, but last year they fell
to €855m, which were down 14 percent. However, expenses were barely reduced by
2 percent, from €973m to €955m.
For the current fiscal year, the club expects to have expenses
of €796m and income of €828m.
Financial
analysis from @SwissRamble illustrates
the mounting problems that the Blaugrana have financially with spiraling levels
of debt and liabilities owed.
Read
more: Barcelona’s financial struggles: €820m of gross debt,
€1.4billion of liabilities
This
follows on directly from a report in La Vanguardia last week which outlined how
the Catalan giants must repay €420m in debt this year or face insolvency.
The question of whether or not Barcelona
Football Club will go bankrupt depends on resolving of the players’ salaries
payment problem. Sports commentators came to such a conclusion, describing the
negotiations between the club’s management and the players. Reducing wages by
30% is a necessary condition, which must be achieved by November 5. Otherwise,
the legendary Barcelona team will start the New Year with declaring bankruptcy
The football club announced losses in the
amount of € 97 million in early October. Now, according to the Spanish sources,
the team will have to cut the salary fund by € 190 million. The reason for such
a dire financial situation of the club is the pandemic, which disrupted the
usual rhythm of life and the program of sports events planned at the beginning
of the year.