Barca 888m Debt.

[Respekt_III]

888 million gross debt
However, the relentless rise in debt forces alarms to fire. The total amount owed by the club is 888 million of euros. A barbarity whose amount they avoided to reveal Quique Tombas and Òscar Grau in his last public appearances in spite of being asked for it.
This is the gross debt of the club registered on June 30 of this year, resulting from adding long-term debt (189 million), provisions (16), short-term accruals (191) and short-term debt (492). ).

To calculate the net debt would have to subtract 888 million what they owe Barça. Outstanding loans receivable from current assets (236) and financial assets (148) amount to 384 million of euros.

Full Article

Saw this on Reddit and thought to post it here.

TLDR: Seems as though We have a fair amount of debt, The debt seems serviceable (504m net) considering our revenue however on closer inspection our exorbitant wages may make it hard to reduce debt and make investments in the future. This may very well be an issue with the age of our 'core' players and the inflation in the market.

Should probably be moved to general FCB talk.

 

[wisconsincule]

I may be wrong on this but didn’t Barto say when he left we would have zero debt?

 

[impeh]

does anyone have legit figures of our wage structure? im pretty sure we're considerably higher than every other team

but yeh, not good.

 

[Zidane82]

My wife looked at our bank statement and said ‘ ah well , they’re only numbers ! “

 

[Respekt_III]

does anyone have legit figures of our wage structure? im pretty sure we're considerably higher than every other team

but yeh, not good.

According to the article from our financial statement its 639m, its absolutely insane.

I may be wrong on this but didn’t Barto say when he left we would have zero debt?

That was never going to happen with him in charge. That artcile is old, would love to see how much debt we have now with the addition of the man child.

 

[George_Costanza]

I may be wrong on this but didn’t Barto say when he left we would have zero debt?

No company on earth has a zero debt even if they are are very profitable.

 

[Mitchell1978]

Could swear barça's finances wore a lot better a couple of seasons ago, what the hell is Barto doing?

 

[serghei]

Could swear barça's finances wore a lot better a couple of seasons ago, what the hell is Barto doing?

Buying too many stars while keeping the same dumb manager. Superstars cost a tonne nowadays.

Basically the complete reverse of Liverpool's strategy.

 

[raki]

Fake news.

 

[abbbs97]

Yes, this is fake news.
According to this: http://mysoccerex.com/Soccerex_Football_Finance_100_2019_Edition.pdf Barca's debt is 435m which is similar to many other clubs.

 

[PhilS]

That's not that much debt for a business with revenues this size. Now that De Jong and Griezmann are signed, we should see some selling soon, which should lower the debt. At least one forward and one midfielder are surplus now, maybe even two of each. Still need a spare LB, maybe upgrade the bench at CB.

 

[FinBarcelonafan]

888m debt includes the new 600 million stadium project?

 

[Respekt_III]

888m debt includes the new 600 million stadium project?

No it does not from what I've seen.

That's not that much debt for a business with revenues this size. Now that De Jong and Griezmann are signed, we should see some selling soon, which should lower the debt. At least one forward and one midfielder are surplus now, maybe even two of each. Still need a spare LB, maybe upgrade the bench at CB.

The issue isn't just the debt, its our financial and sporting position. Our expenses to revenue are incredibly thin for a loan of that magnitude, coupled with the need to invest in the squad in the not too distant future and it seems we may be handicapped if the issue isn't addressed.

Yes, this is fake news.
According to this: http://mysoccerex.com/Soccerex_Football_Finance_100_2019_Edition.pdf Barca's debt is 435m which is similar to many other clubs.

Firstly that's net debt they're quoting, secondly no one has the insane wages/revenue we have.
Secondly the numbers in the article are lifted directly from our own financial report 2017/2018.

so if your choose to take a source not directly from our own financial report then thats your prerogative.

 

[Luftstalag14]

Not sure how real those figures are, however needless to say our finances are not in a great shape. Two things speak volumes: (1) Bartomeu wanted to raise the debt ceiling but was vetoed by the socis last October, to me clearly it was a sign that we needed to borrow more and take on more debt and (2) we borrowed 140m earlier this year from American investors (I don’t understand how that was appropriated and approved).

Even at 504m for net debt, it is hard for me to imagine how we have any money left to pay down the principal since our post tax net income is quite small (only 11m after the 17/18 season) and we still have a big hole which is the Espai Project to fill, among other things.

It is true that many clubs have debt (Real Madrid had to borrow about 300m earlier this year or so to finance their new Bernabeu I believe), however our debt level is one of the highest, if not the highest.

 

[snowy]

No it does not from what I've seen.

Yaaaaaikkks if the stadium costs are included in FFP calculations, we're beyond screeeeewed and are gonna run out of kit space!!!!

Our vets are gonna end their elderly care career with sponsor names tatatattooed on their foreheads