FinBarcelonafan
Well-known member
True. Barcelona will never change their style , meaning less CL trophies.
FC Barcelona Finances
- Thread starter Luftstalag14
- Start date
True. Barcelona will never change their style , meaning less CL trophies.
behindbrowneyes
Well-known member
We can't spend money in transfers.
Luftstalag14
Culé de Celestial Empire
That's actually good for us, we need to get our finances in order and return to a heathier position financially before spending more money on transfers.
I don't trust the board to have that self-discipline. Thanks Tebas.
I don't trust the board to have that self-discipline. Thanks Tebas.
FinBarcelonafan
Well-known member
Basically makes next season re-tool/re-build season. We are just trying to become healthy financially.
Luftstalag14
Culé de Celestial Empire
We have a bloated squad and too many deadwood, need to get rid of some players first. This will force us to sell or try something to lower our wage bill. And I hope by summer 2022 we will be in a good position to start investing again.
OFFICIAL: FC BARCELONA IS DEAD
https://www.2playbook.com/clubes/as...te-salarial-inferior-atleti_4082_102_amp.html
Bar?a: a 'clean' of 300 million could 'condemn' him to a lower salary limit than Atleti.
The club is considering cleaning the balance sheet and provisioning all anomalous operations in 2020-2021 to start with a clearer photo in 2021-2022, but this maneuver will weigh heavily on it due to current economic control regulations.
The FC Barcelona celebrates this Sunday the assembly of delegates that should have been in October of last year. On the table, the settlement of the 2019-2020 accounts with record losses of 97.3 million euros , the approval of a loan of 525 million euros coordinated by Goldman Sachs, the vote to join the Super League and, above all, the 2020-2021 budget. On what is decided on this last point, the investment capacity next season will also depend, with a clear risk: having less salary spending capacity than Atl?tico de Madrid, according to industry sources confirmed to 2Playbook .
The reason is none other than LaLiga's current economic control regulations, which cut the spending ceiling assigned by the amount of losses recorded the previous year. “With the current norm that would be the case; that can only change if a majority of the clubs approve it, "say sources familiar with the ins and outs of the association's regulations. At the moment, sources from the clubs indicate that this script twist has not been put on the table.
The only option for the board of Joan Laporta so that this accounting reorganization does not affect sports competitiveness would be a capital increase to cover that hole, as Atleti or even RCD Espanyol will do. The rojiblancos have launched the raising of 181.9 million euros to wipe out the red numbers with which they will close 2020-2021 and reduce debt, which will still give them more margin.
It is an option that Bar?a does not have, owned by its more than 144,000 members and to whom it seems unfeasible to request a spill to avoid that break. Hence, Real Madrid, also owned by its partners, opted for the spending adjustment route, with individual agreements to reduce the annual salary for this course by 10% . In this way, they will be able to partially or totally cover the pre-tax losses of 91.1 million that they anticipated in December.
The manager who supervised the Blaugrana club also failed to reach an agreement of these characteristics, and the most it achieved was to defer the payment of 172 million euros within four years . This amount, for example, is that the new management led by Ferran Reverter would like to charge the accounts for 2020-2021 as well, so that the only thing that that negotiation would have served would be to solve the cash problems.
Thus, the mathematics is clear. The current champion of LaLiga Santander had a limit of 217.3 million euros after the review that was made in December, when it was already taken for granted that the stadiums would not reopen at the level or at the expected time . Bar?a stayed at 347.1 million euros because it was already dragging the restrictions due to the record losses of 2019-2020, while Madrid achieved the highest spending ceiling with 473.3 million, since in the first year of the Covid-19 was able to save the profit.
Once the corrections have been applied, Real Madrid and Atleti would maintain or even increase their margin thanks to the salary reduction in recent months and the potential new income from the Santiago Bernab?u and Wanda Metropolitano operation at half gas. Bar?a, on the other hand, would practically stay with a limit lower than 100 million if it decides to close the accounts for 2020-2021 with those losses of 300 million that have been leaking to the media in recent weeks.
"Today we have the wage bill at 110% of the expected income," admitted Laporta in his first appearance before the media since he took office. “The wage bill has to be adjusted and we have to work in this direction; It is another situation in which we have to make decisions to comply with financial fair play , ”he said.
The 2019-2020 audit does not include any exceptions, so the reformulation of accounts would be difficult to justify and the only option is to charge it to the settlement of this exercise, which will correspond to the Laporta board. In this way, and for the purposes of accounting for the mandate, the presidency of the Barcelona lawyer should not carry this backpack for the purposes of guarantees, after the change of rule approved by the Higher Sports Council (CSD) in the year of the pandemic .
Of course, everything points to a strong criticism of the management of the board of Josep Maria Bartomeu, taking advantage of the first item on the agenda, reserved for the president's report. By then it is expected that the Deloitte audit will be completed, on which Laporta limited himself to commenting that "things are coming out, some worrying, others surprising and some complicated that have an easy solution."
An unrealizable budget for 2020-2021
At the moment, what will be approved this Sunday is the last budget prepared by the manager, which already included numerous uncertainties whose non-compliance left any objective in question , as 2Playbook advanced . If met, revenues should fall to only 828 million euros in 2020-2021, 3.2% less than in 2019-2020 and 21.8% less compared to that same year without the impact of the pandemic.
But the reality is even harsher, since the squaring of the accounts was subject to the sale of 50% of Bar?a Corporate for at least 100 million euros , an operation that Laporta's team has refused to execute in the short term. Including this operation, for which there were already two final candidates, caused the marketing income to be sharply revised upwards, from 281 million to 380.3 million euros.
In addition, 56 million euros were included for the stadium, when the membership fees, which is the only thing that has been collected, barely amount to 20 million per year; A separate question is knowing how much the museum has generated, fully or partially closed for much of the season. It remains to be resolved what will be done with those who paid the subscription and have not enjoyed it.
Where there have been hardly any variations is in the television rights item , which was corrected downward by 1%, to 302.1 million euros. Even so, it is the highest figure in history for a purely accounting reason: the 2019-2020 match dispute in July and August causes part of that bill to carry over to 2020-2021. In this item, where Uefa payments for the Champions League are also included, the bulk continues to correspond to LaLiga payments, which have stabilized around 165 million euros per year .
Regarding capital gains from transfers and other atypical income, the manager lowered the target, from 106 million to 88.6 million euros, a correction of 16% and for which exits should still materialize in the next two weeks. At the moment only around 50 million euros have been achieved: 30 million with the departure of Nelson Semedo, about 8.5 million with Jean-Clair Todibo, 7 million more for Luis Su?rez and 3 million for the departures of Ivan Rakitic and Arturo vidal.
On the expense side, and despite the agreements to defer 172 million, the current budget planned to allocate 506.4 million euros to the sports salary mass, that is, payroll and amortizations for transfers . This is a 20.4% year-on-year cut, or what is the same, 130 million less than in 2019-2020.
Why is the adjustment in the wage bill less than what was agreed? Last year, a salary reduction of 35 million was achieved with effects in 2019-2020, and to this it is added that the terminations of contracts such as that of Luis Su?rez or Arturo Vidal have demanded compensation, to which must be added the return of Phillippe Coutinho, and the impact on the amortizations of the signings of Pjanic, Trincao, Pedri or Dest, which add a minimum of 20 million more to a game that already exceeded 130 million.
Goldman Sachs operation: 525 million extra to settle the short term
All this difficult economic situation, one of the most worrisome in LaLiga, is what has led the club to negotiate a large long-term financing with Goldman Sachs. For now, the conditions in terms of maturities and cost are unknown, but the partners must decide whether to authorize up to 525 million euros through the investment bank . With these resources, the most urgent debt with dozens of suppliers would be liquidated and the number of interlocutors would be reduced.
The club accumulated 820 million in commitments with banks and clubs as of June 30, 2020, to which are added the 815 million linked to Espai Bar?a , of which an advance of 90 million was already obtained last year.
Debt with banks and clubs soared 48% year-on-year in 2019-2020, to 820 million euros, and the reality is that not everything is a consequence of Covid-19. Without a pandemic, the figure would have reached 770 million, up 39%.
Bar?a did not hesitate to take advantage of the liquidity lines enabled by the Government to avoid the collapse of the business fabric, and obtained credit policies for 145 million euros that are 70% guaranteed by the Official Credit Institute (ICO), which has now also been able to refinance .
In total, the commitments with the banks have gone from 271 million to 480 million euros, of which 266 million would have to be returned in 2020-2021 in the absence of this refinancing. Regarding commitments with clubs, these rose from 261 million to 323 million euros, of which almost half already had to be faced this year.
As regards Espai Bar?a, the financing designed by Goldman Sachs totals 725 million euros, with annual repayments of 50 million euros over a period of 25 years, from 2024-2025, which is when the jobs. In the first five years, corresponding to construction, nothing will be paid, since the 90 million euros that should have been paid in interest during this time are those that were advanced.
The future of the Superliga, in the hands of the delegates?
The third strong point of the assembly will be to approve or not the adhesion of Bar?a to the Superliga project, a clause that Laporta introduced at the last minute and that will exempt the club from penalties in case the delegates vote against. The board will promote a favorable vote, since it is the only one that holds in the project together with Real Madrid and Juventus. "We cannot turn our backs on the movements in which the big clubs are involved," Laporta defended these weeks.
His failure, yes, would leave the initiative led by Florentino P?rez very touched, after nine clubs, including the Big Six of the Premier League, became unmarked 48 hours after joining in the face of strong popular opposition. In addition, the nine have already signed a pact with Uefa that makes their return to that idea unfeasible .
The Premier has imposed sanctions , while LaLiga is currently cautious about this option. Of course, its president, Javier Tebas, advanced the day before yesterday that “if someone carries out acts that cause economic damage to your competition, then the economic aspect of the competition will have to be tweaked. Without sanctions, but it is easy to understand: if the audiovisual rights decrease because a Super League is created, the distribution should change ”. In other words, they could reduce the weight of the cast to the protagonists of El Cl?sico .
https://www.2playbook.com/clubes/as...te-salarial-inferior-atleti_4082_102_amp.html
Bar?a: a 'clean' of 300 million could 'condemn' him to a lower salary limit than Atleti.
The club is considering cleaning the balance sheet and provisioning all anomalous operations in 2020-2021 to start with a clearer photo in 2021-2022, but this maneuver will weigh heavily on it due to current economic control regulations.
The FC Barcelona celebrates this Sunday the assembly of delegates that should have been in October of last year. On the table, the settlement of the 2019-2020 accounts with record losses of 97.3 million euros , the approval of a loan of 525 million euros coordinated by Goldman Sachs, the vote to join the Super League and, above all, the 2020-2021 budget. On what is decided on this last point, the investment capacity next season will also depend, with a clear risk: having less salary spending capacity than Atl?tico de Madrid, according to industry sources confirmed to 2Playbook .
The reason is none other than LaLiga's current economic control regulations, which cut the spending ceiling assigned by the amount of losses recorded the previous year. “With the current norm that would be the case; that can only change if a majority of the clubs approve it, "say sources familiar with the ins and outs of the association's regulations. At the moment, sources from the clubs indicate that this script twist has not been put on the table.
The only option for the board of Joan Laporta so that this accounting reorganization does not affect sports competitiveness would be a capital increase to cover that hole, as Atleti or even RCD Espanyol will do. The rojiblancos have launched the raising of 181.9 million euros to wipe out the red numbers with which they will close 2020-2021 and reduce debt, which will still give them more margin.
It is an option that Bar?a does not have, owned by its more than 144,000 members and to whom it seems unfeasible to request a spill to avoid that break. Hence, Real Madrid, also owned by its partners, opted for the spending adjustment route, with individual agreements to reduce the annual salary for this course by 10% . In this way, they will be able to partially or totally cover the pre-tax losses of 91.1 million that they anticipated in December.
The manager who supervised the Blaugrana club also failed to reach an agreement of these characteristics, and the most it achieved was to defer the payment of 172 million euros within four years . This amount, for example, is that the new management led by Ferran Reverter would like to charge the accounts for 2020-2021 as well, so that the only thing that that negotiation would have served would be to solve the cash problems.
Thus, the mathematics is clear. The current champion of LaLiga Santander had a limit of 217.3 million euros after the review that was made in December, when it was already taken for granted that the stadiums would not reopen at the level or at the expected time . Bar?a stayed at 347.1 million euros because it was already dragging the restrictions due to the record losses of 2019-2020, while Madrid achieved the highest spending ceiling with 473.3 million, since in the first year of the Covid-19 was able to save the profit.
Once the corrections have been applied, Real Madrid and Atleti would maintain or even increase their margin thanks to the salary reduction in recent months and the potential new income from the Santiago Bernab?u and Wanda Metropolitano operation at half gas. Bar?a, on the other hand, would practically stay with a limit lower than 100 million if it decides to close the accounts for 2020-2021 with those losses of 300 million that have been leaking to the media in recent weeks.
"Today we have the wage bill at 110% of the expected income," admitted Laporta in his first appearance before the media since he took office. “The wage bill has to be adjusted and we have to work in this direction; It is another situation in which we have to make decisions to comply with financial fair play , ”he said.
The 2019-2020 audit does not include any exceptions, so the reformulation of accounts would be difficult to justify and the only option is to charge it to the settlement of this exercise, which will correspond to the Laporta board. In this way, and for the purposes of accounting for the mandate, the presidency of the Barcelona lawyer should not carry this backpack for the purposes of guarantees, after the change of rule approved by the Higher Sports Council (CSD) in the year of the pandemic .
Of course, everything points to a strong criticism of the management of the board of Josep Maria Bartomeu, taking advantage of the first item on the agenda, reserved for the president's report. By then it is expected that the Deloitte audit will be completed, on which Laporta limited himself to commenting that "things are coming out, some worrying, others surprising and some complicated that have an easy solution."
An unrealizable budget for 2020-2021
At the moment, what will be approved this Sunday is the last budget prepared by the manager, which already included numerous uncertainties whose non-compliance left any objective in question , as 2Playbook advanced . If met, revenues should fall to only 828 million euros in 2020-2021, 3.2% less than in 2019-2020 and 21.8% less compared to that same year without the impact of the pandemic.
But the reality is even harsher, since the squaring of the accounts was subject to the sale of 50% of Bar?a Corporate for at least 100 million euros , an operation that Laporta's team has refused to execute in the short term. Including this operation, for which there were already two final candidates, caused the marketing income to be sharply revised upwards, from 281 million to 380.3 million euros.
In addition, 56 million euros were included for the stadium, when the membership fees, which is the only thing that has been collected, barely amount to 20 million per year; A separate question is knowing how much the museum has generated, fully or partially closed for much of the season. It remains to be resolved what will be done with those who paid the subscription and have not enjoyed it.
Where there have been hardly any variations is in the television rights item , which was corrected downward by 1%, to 302.1 million euros. Even so, it is the highest figure in history for a purely accounting reason: the 2019-2020 match dispute in July and August causes part of that bill to carry over to 2020-2021. In this item, where Uefa payments for the Champions League are also included, the bulk continues to correspond to LaLiga payments, which have stabilized around 165 million euros per year .
Regarding capital gains from transfers and other atypical income, the manager lowered the target, from 106 million to 88.6 million euros, a correction of 16% and for which exits should still materialize in the next two weeks. At the moment only around 50 million euros have been achieved: 30 million with the departure of Nelson Semedo, about 8.5 million with Jean-Clair Todibo, 7 million more for Luis Su?rez and 3 million for the departures of Ivan Rakitic and Arturo vidal.
On the expense side, and despite the agreements to defer 172 million, the current budget planned to allocate 506.4 million euros to the sports salary mass, that is, payroll and amortizations for transfers . This is a 20.4% year-on-year cut, or what is the same, 130 million less than in 2019-2020.
Why is the adjustment in the wage bill less than what was agreed? Last year, a salary reduction of 35 million was achieved with effects in 2019-2020, and to this it is added that the terminations of contracts such as that of Luis Su?rez or Arturo Vidal have demanded compensation, to which must be added the return of Phillippe Coutinho, and the impact on the amortizations of the signings of Pjanic, Trincao, Pedri or Dest, which add a minimum of 20 million more to a game that already exceeded 130 million.
Goldman Sachs operation: 525 million extra to settle the short term
All this difficult economic situation, one of the most worrisome in LaLiga, is what has led the club to negotiate a large long-term financing with Goldman Sachs. For now, the conditions in terms of maturities and cost are unknown, but the partners must decide whether to authorize up to 525 million euros through the investment bank . With these resources, the most urgent debt with dozens of suppliers would be liquidated and the number of interlocutors would be reduced.
The club accumulated 820 million in commitments with banks and clubs as of June 30, 2020, to which are added the 815 million linked to Espai Bar?a , of which an advance of 90 million was already obtained last year.
Debt with banks and clubs soared 48% year-on-year in 2019-2020, to 820 million euros, and the reality is that not everything is a consequence of Covid-19. Without a pandemic, the figure would have reached 770 million, up 39%.
Bar?a did not hesitate to take advantage of the liquidity lines enabled by the Government to avoid the collapse of the business fabric, and obtained credit policies for 145 million euros that are 70% guaranteed by the Official Credit Institute (ICO), which has now also been able to refinance .
In total, the commitments with the banks have gone from 271 million to 480 million euros, of which 266 million would have to be returned in 2020-2021 in the absence of this refinancing. Regarding commitments with clubs, these rose from 261 million to 323 million euros, of which almost half already had to be faced this year.
As regards Espai Bar?a, the financing designed by Goldman Sachs totals 725 million euros, with annual repayments of 50 million euros over a period of 25 years, from 2024-2025, which is when the jobs. In the first five years, corresponding to construction, nothing will be paid, since the 90 million euros that should have been paid in interest during this time are those that were advanced.
The future of the Superliga, in the hands of the delegates?
The third strong point of the assembly will be to approve or not the adhesion of Bar?a to the Superliga project, a clause that Laporta introduced at the last minute and that will exempt the club from penalties in case the delegates vote against. The board will promote a favorable vote, since it is the only one that holds in the project together with Real Madrid and Juventus. "We cannot turn our backs on the movements in which the big clubs are involved," Laporta defended these weeks.
His failure, yes, would leave the initiative led by Florentino P?rez very touched, after nine clubs, including the Big Six of the Premier League, became unmarked 48 hours after joining in the face of strong popular opposition. In addition, the nine have already signed a pact with Uefa that makes their return to that idea unfeasible .
The Premier has imposed sanctions , while LaLiga is currently cautious about this option. Of course, its president, Javier Tebas, advanced the day before yesterday that “if someone carries out acts that cause economic damage to your competition, then the economic aspect of the competition will have to be tweaked. Without sanctions, but it is easy to understand: if the audiovisual rights decrease because a Super League is created, the distribution should change ”. In other words, they could reduce the weight of the cast to the protagonists of El Cl?sico .
Luftstalag14
Culé de Celestial Empire
[MENTION=23843]Prodi[/MENTION], so it sounds like the wage bill limit imposed by La Liga is not based on the total revenue achieved, rather it is based on profit/loss a club incurs? That explains why Real Madrid and Atletico Madrid are given higher limit than us, even though our revenue from 19/20 was higher?
serghei
Senior Member
It makes sense. Revenue is important, but only as long as you can keep your expenses under control.
Exactly, we need profit.
Solutions:
-Sell Barca Coorporate.
-Stadium naming rights
-Player loans without losses.
Luftstalag14
Culé de Celestial Empire
Yes, not only from the revenue and debt perspective which we know have been bad, but this La Liga wage bill limit is killing us, even if we had the money we couldn't spend over the limit.
The most important thing is to somehow figure out a way to cut the wage bill under the 347m limit for this season and improve our revenue so we don't incur another big loss in 21/22 season which will even paralyze us further, from a wage bill limit perspective alone.
The most important thing is to somehow figure out a way to cut the wage bill under the 347m limit for this season and improve our revenue so we don't incur another big loss in 21/22 season which will even paralyze us further, from a wage bill limit perspective alone.
Last edited:
Luftstalag14
Culé de Celestial Empire
On Barca Corporate I am with Laporta, I'd rather we don't sell the 49% stake unless it is the last resort and absolutely necessary. Stadium naming rights won't get us much, perhaps 20m-25m tops a season, we have been looking for one for a long time.
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