FC Barcelona Finances

[khaled_a_d]

https://sportsfinding.com/the-keys-to-the-salary-limit/105261/

The 25% thing seems doable tbf.
PS: I think Liga rules are fair, except for renewing your own player ,especially on discount, as it shouldn't be considered new player. Like the NBA for example

 

[Luftstalag14]

The 25% thing seems doable tbf.
PS: I think Liga rules are fair, except for renewing your own player ,especially on discount, as it shouldn't be considered new player. Like the NBA for example

I don't know if it is doable or not, its aim is certainly trying to help clubs achieve a healthier wage bill and better financial health overall so that is laudable. However it can be self-crippling, especially when it comes to competing with teams from other leagues that have no such limits.

Also, I don't understand the formula that calculate the salary cap: "the income must be subtracted for overhead costs and debt repayment". Does that mean even if we came back to pre-COVID level revenues one day, as long as we have a large debt (and hence high debt repayment), our wage bill will continue to be depressed for the foreseeable future?

 

[El Gato]

Also, I don't understand the formula that calculate the salary cap: "the income must be subtracted for overhead costs and debt repayment". Does that mean even if we came back to pre-COVID level revenues one day, as long as we have a large debt (and hence high debt repayment), our wage bill will continue to be depressed for the foreseeable future?

Why would it? Same rules applied since 2013 and no problems were reported

 

[JamDav1982]

It is difficult to compare to other leagues.

The EPL for example is full of billionaires that will mean no real threat to future of club and in most cases they will continue to put the money in.

La Liga doesnt have any real interest for those owners and clubs at more risk.

 

[Luftstalag14]

Why would it? Same rules applied since 2013 and no problems were reported

Is it? I had never seen this salary cap thingy being mentioned until the last couple of seasons. And I thought we (Barca) breached it before and got away with it (?) and the league for the first time is being really firm about it, at least that is how Tebas appears to be?

 

[El Gato]

Is it? I had never seen this salary cap thingy being mentioned until the last couple of seasons. And I thought we (Barca) breached it before and got away with it (?) and the league for the first time is being really firm about it, at least that is how Tebas appears to be?

That's cuz it never impacted bigger sides, more so in place to keep smaller sides healthy and away from seesawing into bankruptcy from what I've heard
Until Barca gone mad with >70% staff expenses and Covid hit to bring light to it

1:50

 

[El Gato]

Also a guy from the comments from the above video who I thought explained quite neatly

If Barca exceeds the La Liga limit in salaries (which is based on income), they can only sign with one quarter of the money they earn. If they earn 100 millions in sales this summer, they can sign for 25 millions (in signing fee AND salary). Meaning, as Messi has not renewed, if they want to pay Messi 100 millions without taxes, they have to earn 400 millions in sales and salaries. So signing Messi is difficult. But the estimation of enrolling the new signings (Depay, Garcia, Emerson and Aguero) is that they need 144 millions more. So, with these numbers, it is enrolling Messi or the new signings, but both seem unlikely. And Messi should lower his salary demands by more than a half to make this even possible.
But also earning money in signings and salaries is quite difficult, because if you sell Griezmann for example for 60 millions, you don't earn 60 millions, because you paid a fee higher than that which is split in the years of his contract. This means you could be really earning 20 millions for selling one of your best players, when you still need more than 500 to enroll your signings and Messi.
Barca idea was to split Messi's salary in 10 years, the problem is Messi has had problems with spanish tax authorities, also Barca, and this contract could be problematic. As they have had tax problems before, Messi could end up in jail and Barcelona dissolved as a club. So no jokes.
But wait, there's more: if you can't enroll the new signings, yes you can sell them without any problem, but players might demand their salary. Situation is this bad.

(...)

Most of the debt in Barcelona is with Goldman Sachs. They will not let Barca dissapear, worst case scenario the club will turn into stock corporation with most of the stocks belonging to US banks and a part to the current socios, in my opinion. Maybe they have to sell some youngsters. But Its not in the interest of any to let Barca fall, its a fixable money printer machine.

 

[Luftstalag14]

Also a guy from the comments from the above video who I thought explained quite neatly

The club must have consulted with tax consultants and lawyers before they came up with the 10-year scheme or whatever they are going to do with Messi, they wouldn't flat out break the law and jeopardize its biggest star and the club. Barca getting dissolved? Are there any precedents of sports clubs in Spain being dissolved for violating tax laws?

Also the part about Goldman Sachs owning most of the debt is not true. They are probably the biggest creditor of our debt, but they don't own most of our debt (right now around 50% by my calculation, but could be a lot more if we borrow money from them later for Espai Barca).

 

[El Gato]

50% is very close to being 'most'. Especially if the other creditors own smaller fractions.

Who knows about the tax bit. Didn't really focus on that. Most clubs in general keel over through debt problems, not tax.

 

[Luftstalag14]

50% is very close to being 'most'. Especially if the other creditors own smaller fractions.

It is me nitpicking his semantics. It is just his personal opinion anyways.

 

[Luftstalag14]

Just finished watching the video Wolfe posted above, a shitty video with a lot of typical media sensationalization to grab eye balls without real substance. Didn't know Athletic and Dermot Corrigan were this level journalism.

"160m cap for this season..." How?

"could be selling Frenkie De Jong..." Why would we or any club sell their core players? Unless we don't want to be in the football business anymore?

"Barcelona getting decimated.." How? By losing Junior Firpo, Alena, Todibo, Miranda, Trincao (on loan)?

"everybody knew Barca were bankrupt..." Bankrupt in what way?

Can't wait for us to come back stronger one day and wipe the smug off these guys' faces. Fuck their schadenfreude.

 

[khaled_a_d]

Can't wait for us to come back stronger one day and wipe the smug off these guys' faces. Fuck their schadenfreude.

This is sport journalism nowadays, celebrations on failures

 

[Horatio]

Maybe just me but noticed people here barely bring up the fact that a capacity of people will be allowed to the games coming season(at least, what I read here on the forums a while ago). That should help Barca stay afloat.

 

[El Gato]

Yeah it is what it is, not that shitty, just claims need to be taken at face value.

"160m cap for this season..." How?

Good question. Ask them. Their sources check out more often than any others and estimates are pretty consistent around this figure.

"could be selling Frenkie De Jong..." Why would we or any club sell their core players? Unless we don't want to be in the football business anymore?

Didn't say that.
Just made the point it's easier to sell players who hold value.

"Barcelona getting decimated.." How? By losing Junior Firpo, Alena, Todibo, Miranda, Trincao (on loan)?

Claim of being decimated refers specifically to the potential loss of the most valuable players. Just unfortunate it came directly after the prior examples.

"everybody knew Barca were bankrupt..." Bankrupt in what way?

I mean...

Not sure where you saw schadenfreude other than perhaps a hint of it when the Super League involvement.

 

[Luftstalag14]

Yeah it is what it is, not that shitty, just claims need to be taken at face value.



Good question. Ask them. Their sources check out more often than any others and estimates are pretty consistent around this figure.



Didn't say that.
Just made the point it's easier to sell players who hold value.



Claim of being decimated refers specifically to the potential loss of the most valuable players. Just unfortunate it came directly after the prior examples.



I mean...

Not sure where you saw schadenfreude other than perhaps a hint of it when the Super League involvement.

The video has a lot of wishy washy and speculative opinions like the 160m figure and the suggestion that we could be looking to sell De Jong and Ter Stegen etc. (again, speculative and useless, we could sell the entire squad, by their token if we want to get out this situation. Then again, what is the point? Closing up shop? ) and big catchy words like "decimated" and "bankrupt" etc., again, just to grab eyeballs.

Demot Corrigan is based in Madrid and seems to report mostly on Real Madrid-related stuff, I don't know if he is a really a good resource for that video, he seemed to just have rehashed information reported and rumors circulated on the internet, nothing new and nothing we didn't know really.