13 - Joan García

[Devils]

Ironically, the guy who said that it stops Barca from becoming AC milan is right - but only short term.

Barca could still become the AC Milan of Spain if the implications of the levers have long term detriment to the club lol.

 

[RedxMAK]

Ironically, the guy who said that it stops Barca from becoming AC milan is right - but only short term.

Barca could still become the AC Milan of Spain if the implications of the levers have long term detriment to the club lol.

The long term effect will be neutered by the new stadium we’re building. If there’s no competitive team, there’s no one to watch the games so that’s stadium revenue lost. You can’t just stay in austerity with a bang average team and build a stadium with such a team and expect to be back financially…

 

[khaled_a_d]

The whole point of the lever strategy is a short term gamble for success with guaranteed long-term loss.

Barca sold 25% of its TV right for the next 25 years, sold Barca studios that was a key part of their digital strategy and also sold parts future merchandising and stadium revenues.

You can't say it was necessary until you see the long term implications of this (which haven't been seen yet).

Levers were made to pay for the losses of the past, that is what it is. Almost every club in Spain has done it, with Real Madrid being the pioneer in that regard.
The studios were made with the idea of selling them with Bartou's own admission, and having partners who can run it and make the best out of it.

Barca has probably taken a step back behind Real Madrid for the foreseeable future, mainly because the implication of Covid and Bartou's policies has hurt.

 

[RedxMAK]

Levers were made to pay for the losses of the past, that is what it is. Almost every club in Spain has done it, with Real Madrid being the pioneer in that regard.
The studios were made with the idea of selling them with Bartou's own admission, and having partners who can run it and make the best out of it.

Barca has probably taken a step back behind Real Madrid for the foreseeable future, mainly because the implication of Covid and Bartou's policies has hurt.

Exactly, everybody forgets the fact they sold their training ground for over €200m in 2001, which helped finance their transfers and debt. Also they sold 100% of their TV rights in 2006. It’s a normal thing to do these levers and it shouldn’t be something to look at in a negative light, Barcelona needed to be competitive and that is a big factor in producing income.

 

[Devils]

The long term effect will be neutered by the new stadium we’re building. If there’s no competitive team, there’s no one to watch the games so that’s stadium revenue lost. You can’t just stay in austerity with a bang average team and build a stadium with such a team and expect to be back financially…

The point is simple - Barca will have long term and short term debts and hugely increased operating costs they will have to pay off from the stadium.

Their revenues to pay off the debts and costs will reduced because of the levers.

 

[TheStig]

The long term effect will be neutered by the new stadium we’re building. If there’s no competitive team, there’s no one to watch the games so that’s stadium revenue lost. You can’t just stay in austerity with a bang average team and build a stadium with such a team and expect to be back financially…

Most of the new stadium revenue we'll go towards paying the debt that building the stadium created. I don't know why everyone ignores that.

 

[Devils]

Levers were made to pay for the losses of the past, that is what it is. Almost every club in Spain has done it, with Real Madrid being the pioneer in that regard.
The studios were made with the idea of selling them with Bartou's own admission, and having partners who can run it and make the best out of it.

Barca has probably taken a step back behind Real Madrid for the foreseeable future, mainly because the implication of Covid and Bartou's policies has hurt.

That's not entirely true.

Barca's levers also inflated the club's revenues and the club booked the TV right sales and Barca studios sales as capital gains on the books which made the the books look balanced for FFP and bump the salary cap significantly.

You can't keep inflating the books with these one off transactions and not have detrimental effects in the future - Laporta is still trying to do this with the VIP booth sales btw.

Once these levers are off the books (likely starting in 2027/2028) then the club will only be bringing in recurring revenues, which will be less than what these inflated lever based revenues are currently showing on the books.

Long story short, the board is just kicking the can down the road but eventually the pain of these levers will need to be recognized.