FC Barcelona Finances

[raskolnikov]

They already started handing out huge contracts before (thinking of Arda for example), that one is surely a big problem as well as it shows in how hard it is for us to get rid of players. Can't think of any other club that constantly has problems with flops on huge wages.

But yeah the Neymar transfer triggered the downfall into complete financial madness. Dembele, Coutinho, Griezmann that's a total of around 400M just in fees, and then the crazy wages on top of it. Even if they weren't all failures that would've been an insane investment that forced them into these shady book balancing deals, they were always operating at the limit with no safety net.

Funniest thing is they even tried to re-sign Neymar as well

I feel that Messi's salary is a problem as well.
Not to blame him but everything became a reference point after that to be on high wages. Like for Suarez and Neymar. Then other players want similair wages.
Barto run this club into the ground.

 

[Gnidrologist]

So is there set of circumstances that may happen, which may prevent FC Barcelona to even participate in the upcoming season?

 

[Leong157]

So what happens?

-We're going to renew Messi as it is priority #1 and everything in the contract is agreed upon and the only reason why he hasn't been signed is because we need to lower the wages first
-We've already signed Depay, Aguero, Garcia and Emerson
-We're working on selling players to reduce the salary cap

All three of these thing are happening/have happened.

But according to the numbers it is basically impossible for all the signing to register.

There HAS to be something off about the numbers, there HAS to be some sort of strategy.

I think Laporta is genuinely did not know. He just took over and the audit has been going on. He also mentioned that what he found is worse than what he thought.

 

[raskolnikov]

I read there is a precedent set by Hercules or Malaga that allows clubs in Spain to terminate contracts in certain situations without paying full contract wages.
If posible thats a last resort type way out of this mess for the time being.

 

[khaled_a_d]

So is there set of circumstances that may happen, which may prevent FC Barcelona to even participate in the upcoming season?

No, the worst case scenario that new players won't be registered and we have to go into the season with same squad we had last one

 

[behindbrowneyes]

No, the worst case scenario that new players won't be registered and we have to go into the season with same squad we had last one

bar Messi.

 

[Messi983]

Thanks! Couple of things I learned from that article (I think):

(1) Amortizations are part of the salary cap and in our case, a big part (144m for the 21/22 season). To reduce amortizations the only way would be to get rid of players in any way we could do.

(2) The 347m figure is the salary cap for the upcoming 21/22 season, still no idea where the rumored 120-160m figure comes from. Could it possible be our salary cap for the 22/23 season if we don't improve our revenue (from between 500m and 600m)?

I still don't buy the 120-160m drastic figure yet and would like to know how La Liga bases these salary caps on. At 160m, it would amount to 30% of our total revenue (let's say it is the depressed amount of 500m, which is 300m to 400m less than the pre-COVID numbers). How the heck is La Liga expecting a club to only spend 30% of its total revenue on wages? Didn't UEFA or something recommend spending around 60% of a club's revenue on wages? 30% is too low and completely unreasonable. It would be stupid for La Liga to put such an unreasonable and stringy constraint like this on its clubs and commit a suicide like this.

2.4. Player Salaries
The war for playing talent among the top European clubs is driven by the desire for
on-field success and win maximisation [2,3,25]. Player salaries constitute the single largest
cost factor of clubs in modern professional football [25]. Wages represent anything between
60% and 72% of revenues in each of the five large European football leagues [4] and account
for between 70% and 80% of total operating costs in the EPL. The previous growth of club
revenues in the EPL was accompanied by considerably increasing wage bills


In last "normal" season (2018/19) Barca's sporting costs (football+other sections) over revenue were at 68%. And for football only that was around 63% IIRC (also keep in mind that most clubs in other leagues don't have basketball, handball etc. sections).

So while our wages in total were the highest in European football and this wasn't sustainable longterm (so we'd still need to lower wage bill mid-and long-term we wouldn't need to rush things short-term) without Covid we would be ok if the club would get estimated/projected revenues.

Instead, those estimated revenues were reduced for around 600m (possibly more) since March 2020. We've lost almost 200m from March-June last year only (though I think we did get some of that money back - mostly TV money and some CL prize money - when we've ended last season CL and league campaigns in July and August) and while the club has adapted/lower their first projected budget for 2020/21 we have in the end still receive less money as stadiums were closed for a full season while initial projections were fans could return in reduced capacity during the season.


Here are comparisions between revenues and wage costs for top 5 leagues in last two pre-covid seasons (by Deloitte)

So don't understand either why we should only spend 30% of projected budget on wages instead of at least 50% if not closer to 60%. Either way, we'll have a better idea when we'll see what estimated budget for 2021/22 the club will announce.

 

[behindbrowneyes]

So don't understand either why we should only spend 30% of projected budget on wages instead of at least 50% if not closer to 60%. Either way, we'll have a better idea when we'll see what estimated budget for 2021/22 the club will announce.

The only reason I can think of is that this has something to do with the major loss from 20-21 season. High debt was not a problem as long as EBIT was positive. Now that this figure will be "very negative", this might lower the salary cap in this way until EBIT is in the black again.

 

[JerseyAddict]

I feel that Messi's salary is a problem as well.
Not to blame him but everything became a reference point after that to be on high wages. Like for Suarez and Neymar. Then other players want similair wages.
Barto run this club into the ground.

Amen.

 

[MTL_Barca]

I feel that Messi's salary is a problem as well.
Not to blame him but everything became a reference point after that to be on high wages. Like for Suarez and Neymar. Then other players want similair wages.
Barto run this club into the ground.

Probably, especially now. But i feel like it was never really the biggest issue, even with others demanding more as well. Paying valuable players in their prime a lot of money is still alright, handing out way overpaid retirement contracts or signing actually useless players for shitloads of money was what gave and still gives us the most problems.

Messis salary is ridiculous of course, but at least he has value on and off the pitch compared to Dembele, Coutinho and Griezmann. Also they fucked up with Neymars loyalty bonus and Umtitis release clause for example, both of which put them under immense pressure resulting in Umtitis huge contract and the panic transfer of Dembele. They just screwed up in every way imaginable

 

[Messi983]

Just hypothetically but if Messi's wages would be 10-20% lower then the rest of the squad further down the paying ranks would also earn 10-20% less. Doesn't seem much at first glance but it could save us up to 100m yearly.

 

[Sterlingfan2000]

Rakuten Apparently Furious at Barca. Rakuten CEO will fly to Barcelona next week to talk with Laporta

 

[Luftstalag14]

Rakuten Apparently Furious at Barca. Rakuten CEO will fly to Barcelona next week to talk with Laporta

He doesn't have to fly to Barcelona to talk to Laporta. It is 2021.

Once again, come out and apologize it to pacify Rakuten and the Japanese public and be done with it.

 

[Prodi]

Antoine Griezmann and Ousmane Dembele have both spoken to Barcelona and admitted and regretted their mistake about the video. Griezmann has also spoken with Rakuten CEO Mikitani, while Dembele plans to do the same. [rac1]

Every day that passes there are more problems.

 

[Joan]

Antoine Griezmann and Ousmane Dembele have both spoken to Barcelona and admitted and regretted their mistake about the video. Griezmann has also spoken with Rakuten CEO Mikitani, while Dembele plans to do the same. [rac1]

Every day that passes there are more problems.

Maybe Netflix could be interested.

Or Amazon Prime.

If they can film Jeremy Clarkson farming, they can certainly film Barca falling apart.