Barça will be informed that they will not enter 1:1 in this transfer window due to failure to validate the bulk of the VIP (now expected for winter window)
Joan will be registered via Ter Stegen’s injury while Marcus & rest via board personal guarantees
The physical existence of an asset does NOT automatically imply that revenue from its sale or transfer can be recognized Installing VIP seats, although a necessary prior condition, is not sufficient for there to be a transfer of control and risks to a third party
Liga accounting requires that the economic event be real and verifiable, not just potential, and that there be a transfer of control, benefits, and risks over the asset
The Camp Nou is under construction, and this fact is key to understanding the accounting issue of the VIP seats in the Espai Barça. Even if they are physically installed, it must be justified that there is a real possibility of exploiting them, either fully or partially
While the stadium remains closed, the VIP buyer cannot use the seats nor have effective control over them for their continued use, no matter how much they are already built. This is the key factor that needs to be justified and validated, the main reason for the delay in the OK from La Liga & Tebas
What does Barça intend to do to recognize all revenue without prorating it across seasons? The scenario that would allow recognizing all revenue in the same fiscal year is if the stadium were at least partially open and those VIP seats were already operational, along with a contract that transfers all rights and risks from the outset, without the club assuming significant additional services. By meeting these conditions, the transfer of control would be justifiable, and the revenue could be fully recognized this year — did they apply this to the updated capital stadium when they did similar with their VIP seats? No, but as we know rules are interpreted with bias in Spain
What about the 52M already collected? Isn't that enough to validate said sale? That 52M, while the Camp Nou is still under construction and the VIP seats cannot be operationally transferred to their buyer, are not revenue, but an advance. They would be recorded as a liability for deferred revenue, and only transferred to results when the stadium is operational (fully or partially) and the investor has control and the risks of exploitation. The collection is not enough: without a real transfer of control and benefits, the auditor does not allow recognizing it all at once. That is why it will have to wait until winter window to be fully validated and official 1:1 return - we’ve been made to jump through accounting hoops that the capital club never had to #Espana
