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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 toEl 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 ofBarcelona newsare increasingly alarming and a report inEl Mundohas 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@SwissRambleillustrates 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 inLa Vanguardialast 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 financial figures at the heart ofBarcelona newsare increasingly alarming and a report inEl Mundohas 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@SwissRambleillustrates 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 inLa Vanguardialast 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.