Messi983
Senior Member
Updated salary cap. -144m
Is there any official explanation from La Liga somewhere how they calculate LPCD? It makes absolutely no sense to me.
FC Barcelona Finances
- Thread starter Luftstalag14
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Is there any official explanation from La Liga somewhere how they calculate LPCD? It makes absolutely no sense to me.
Luftstalag14
Culé de Celestial Empire
"Bar?a's only way to recover salary cap is with capital gains, either with CVC or others," recalled Javier G?mez, LaLiga's corporate general director. In addition, the Catalan club, "unlike other teams, can not make capital increases," added the executive.
"They have had this information since the end of last year; it is nothing new," they say from the area of economic control. In fact, the fact that Bar?a goes from 97.94 million to having a negative balance of 144.35 million euros is exclusively due to that additional balance sheet cleaning that was executed after the closing. That is, the picture could be even worse if the income hole of more than 100 million that exists today on the 2021-2022 budget that the last assembly endorsed is taken into account."
https://www.2playbook.com/competici...barca-en-144-millones-negativos_7277_102.html
"They have had this information since the end of last year; it is nothing new," they say from the area of economic control. In fact, the fact that Bar?a goes from 97.94 million to having a negative balance of 144.35 million euros is exclusively due to that additional balance sheet cleaning that was executed after the closing. That is, the picture could be even worse if the income hole of more than 100 million that exists today on the 2021-2022 budget that the last assembly endorsed is taken into account."
https://www.2playbook.com/competici...barca-en-144-millones-negativos_7277_102.html
Luftstalag14
Culé de Celestial Empire
No idea how the heck all those salary cap numbers were calculated. It had to be tied to the amount of gains/losses a club incurs, not just the amount of revenue generated (we were behind Madrid by a bit in the last couple of seasons but not that much), if I have to take a guess.
And how the hell can a club operate with a negative salary cap?
And how the hell can a club operate with a negative salary cap?
It's how much over the salary cap we are. Our salary cap for winter market was in the 140m range while our wage bill is around 240m.
The other question to ask is if we are 144m over the budget then what is the penalty? Logically there should be one.
And if there isn't a penalty, then what good is the salary cap in the first place if clubs do not have to keep to it.
So with the added sponsor (and now you can see why Spotify want to squeeze us because of the desperation these salary cap release place on us) and hopefully a sale like Coutinho then we can relax it.
But oh of course, the 300m or so from LaLiga to be repaid over 50 years is the only way out. Retards. Instead of amending the rules in relation to the wild fluctuations that covid has placed on it.
The other question to ask is if we are 144m over the budget then what is the penalty? Logically there should be one.
And if there isn't a penalty, then what good is the salary cap in the first place if clubs do not have to keep to it.
So with the added sponsor (and now you can see why Spotify want to squeeze us because of the desperation these salary cap release place on us) and hopefully a sale like Coutinho then we can relax it.
But oh of course, the 300m or so from LaLiga to be repaid over 50 years is the only way out. Retards. Instead of amending the rules in relation to the wild fluctuations that covid has placed on it.
Luftstalag14
Culé de Celestial Empire
The bold part is what some folks are saying on Twitter, but none of the Spanish media outlets that I have seen stated or confirmed such.
Only 15% of the CVC money can be used toward signing and registering players within the salary cap, not sure how the entirety of the funds will have any impact on the size of our salary cap. I am guessing not much, if we go the route the other clubs did since the money was not considered income for them. If we transfer future audiovisual rights to a new company formed just to sell the rights partially to CVC, it will be a different matter. Might help us get out of the hole we are in right now, but not a prudent one, with us paying a hefty price in the long run.
Anyways, from what I read, it seems that this negative 144m cap is resulted from the gargantuan 487m loss we had from last season, a figure that was purposedly and artificially made higher to accomplish something that is beyond my comprehension. Laporta and Co. knew this was coming and still did it.
All of sudden what Laporta said yesterday (downplaying our chances to get Haaland) makes sense, they probably got wind that this is going to be published today. But again, they should have seen this coming since last summer.
Good post.
The initial Marca article had a Excel screenshot of theirs which showed the calculations but it seems to have dissappeared. Perhaps they changed it for the official LaLiga release image or their calculations were incorrect. It showed the winter salary budget, our salary (244m or something irrc) and the negative result. Either way, both leave alot of questions than answers.
The release to me seems partly to put pressure on the CVC deal on us. And for us, the delicacy of the situation is still there, which had been somewhat hidden thanks to the turn around with Xavi.
But again, how can we be still so far over the salary cap, yet LaLiga confirmed the registrations of all our winter signings as compliant. Couldn't we therfore have renewed Messi (for example) and continued disregarding the salary cap at that point aswell?
We worked with the 4:1 rule exclusively (most likely). Salary cap hasn't been relevant at all. Next season it's important to get some leeway though.
Luftstalag14
Culé de Celestial Empire
Yeah, the reason why I question the interpretation of the negative 144m as being 144m "over" the allowed salary cap by La Liga is because the logic would have meant, for example, Real Madrid can spend 739m MORE than what they have already spent on their wage bill, which doesn't sound right at all.
And yeah, nobody seems to be able to explain what period this negative 144m cap applies to, from when to when, if it is for the entirety of the 21/22 season, how we could actually register all the new signings we did in the January window etc. A clusterfuck.
JamDav1982
Senior Member
The club can sign players as being above the cap doesnt stop it but puts rules in place that have to be followed before can.
Luftstalag14
Culé de Celestial Empire
My understanding has been that we are subject to the 4:1 rule if we are over the salary cap, which we clearly are. So did we actually sell enough players and assets etc. to be consider capital gains or whatever to have a 25% of such allocated to the salaries of new players we signed? And by that token we can't even sign or register the likes of Christensen, Kessie and let alone the Haaland's of the world if we can't generate enough capital gains via the sales of players and assets like Barca Studios and CVC etc.?
Messigician
Senior Member
The fuck is going on at this club
behindbrowneyes
Well-known member
It's a common thing to do within corporations after a change of board of directors. A way for a fresh start and clearing the books from inflated values like there were many with Pjanic, Coutinho and Griezmann the most prominent ones. Doing that last summer was the only way for the new board to attribute these (very likely) losses to the old leadership. As we all know, board can be hold responsible should there be a loss at the end of the presidency and taking those "sunk costs" with them would make things even harder.
Don't know if Laporta's words have anything to do with it. Guess that has more to do with the extensions of Gavi and Araujo and how all that talk about super-expensive Haaland makes it harder to extend those contracts. We've seen it already with Dembele. It's just not in the best interest of Barca that there is so much talk about Haaland, Christensen, Kessie.. I also doubt that news about meeting between Xavi and Haaland deliberately came to surface. That was planned to be kept secret.
Laporta also has chosen exactly the same words he has chosen when Messi left. That's a message to agents of Gavi and Araujo. Literally "We want to keep them, but not for every price." Such statements don't come randomly at this point of time. Every reliable journalist reported that talks will be paused until next international break so players can focus on football. Expect things to speed up after the Clasico.
About that -144M figure... I doubt it changes anything for Barca. It's just the figure for the remainder of the season, so if Xavi wants a new physio with a salary of let's say 500k, club has to save 2M somewhere else to sign him. Players don't get signed at this phase of the season anyway and for summer's salary cap there will be a new figure as the financial result at the end of current season will be the decisive figure for that calculation. That figure is basically the salary cap after the winter transfer market window, but might be that this negative figure has an negative impact on next season's salary cap, like deducting that figure from salary cap of 2022/2023.
Apart from Haaland, rest of linked players are free agents, so they probably already indicate they'll have to operate with that 1-4 - rule next season too. Selling Coutinho or Griezmann will result in a profit in the books as these are players that are in part responsible for that huge loss of 487M (keyword "unplanned" depreciation of assets).
Luftstalag14
Culé de Celestial Empire
I don't know, if these salary cap figures set by La Liga are kind of meaningless and don't have much impact, then why have them in the first place? Just for show? The timing of the release of those salary caps figures are is also confusing, in the middle of March when half of the season is already done? I think there is more to it than we know.
However, at the same time, Laporta and his people are not stupid, they knew by artificially inflating the losses (sounds like both a political and economic move) to 487m there would have a detrimental impact on our salary cap, there must be a price for us to pay, maybe they deemed it OK to pay or something?
Luftstalag14
Culé de Celestial Empire
Because we expect a net profit or a significantly less loss this season?
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