FC Barcelona Finances

[khaled_a_d]

So the club is challenging the CVC deal along with Real Madrid and Athletic Bilbao even though the three clubs chose not to participate.

A total selfish, dick and self-imploding move if this ends up derailing and tanking the deal for everybody else. Making La Liga clubs stronger is in our interest.

It seems to be whatever Florentino Perez wants, we follow these days.

What if it doesn't make Liga stronger? And isn't rfer challenging it too?
Why would Bilbao follow Perez either? Doesn't sound right to me

 

[jamrock]

What if it doesn't make Liga stronger? And isn't rfer challenging it too?
Why would Bilbao follow Perez either? Doesn't sound right to me

Exactly.

 

[Luftstalag14]

What if it doesn't make Liga stronger? And isn't rfer challenging it too?
Why would Bilbao follow Perez either? Doesn't sound right to me

Several clubs such as Valencia, Celta, Mallorca, Real Valladolid etc. have planned to use part of the CVC money to build, revamp, expand either their stadium or sport city and other infrastructure, and some are planning to give relief because of COVID, pay off debt and beef up their coffers etc. Overall I think if the participating clubs follow La Liga's conditions to use the money properly, these clubs will get stronger, at least find themselves in more solid and better footing than before.

In addition, according to 2Playbook, KPMG projects without the CVC deal future La Liga TV money will actually dwindle after 2030 or something like that, and the money the participating clubs lose (10% of the TV money annually) will be compensated by growth in TV deal (estimated by KPMG for around 1 billion starting the 2030/2031 season), so they won't lose at all.

The 9 points our economic committee mentioned against the deal are quite pathetic and weak in my opinion as none of them cite real harm done to the league and the clubs, just a bunch of mumbo jumbo and complaints about the clubs having little time to decide and how CVC will make so much money etc. Of course they are here to make money, the bottom line is these clubs will benefit too and not getting screwed in the process. It is just like selling stake of the Barca Corporate (it is suspected that Laporta and the club created the subsidiary of "Barca Producciones" with the purpose of selling a stake and finding a partner), the rationale is to grow bigger with someone's help, whether it is money or expertise.

Again, I am OK if we don't want to be part of it, but what's the point of challenging it? Ruining it for everyone else? An own-goal scored.

 

[Luftstalag14]

As to following Florentino Perez... ESL which is dead on arrival and we are still clinging onto it, rejections to CVC and being accused of changing our mind last minute, Laporta's economic VP Romeu went out of his way to commend Florentino and tipped his hat off to him..

Eh.

 

[Total-Football]

My theory is that real madrid and barcelona will agree to it but they are sabotaging it now for special previligies they feel entitled to.

 

[SeloBarca]

FC Barcelona?s economic vice president, Eduard Romeu, has promised some eye-popping revelations at an upcoming audit.

Speaking to Catalan radio, Romeu said ?there are some things found in the audit that are straight out of science fiction, that explain how to destroy a club in just a few years.?

The audit is scheduled to be unveiled October 6th.

 

[jamrock]

All of this FC Barcelona & Madrid are trying to hold back la Liga which is why they sued would have made more sense if Bilboa wasn't apart of it.

The "growing" of the pie long term would simply entitle CVC to get more actual hard currency, long term than they are projected to receive now, most clubs in la Liga are simply accepting the money because the time to repay is so long, they are like screw it,who knows what will happen in 50 years.

But to recieve 250m & pay back 750m at the bare minimum, is a horrible deal do take unless you are guaranteed to make at least 1B+ off that 250 over the same time period.

Saying la Liga tv revenue is projected to go down by 2030 is imply that a projection, Madrid signs Mbappe & halland, barca get there shit together after years of mismanagement & signs X star players, bringing back the light to the league & the TV deal could go up.

No self respect business or individual actually would for a second thing a 10% interest rate, which is what it basically is, is good terms on any loan..

10%.. i guaranteed if they went to Germany are England with that they would laugh then out the room, 2-4% over 50 years maybe, but 10.

All of that being said, if the clubs that are suing aren't being affect because they opted out, then just leave it alone

 

[FinBarcelonafan]

Exactly and that's why Italian and Germany teams declined the offer no? Spain is only one desperate enough to consider it

 

[Porque]

The clubs are probably suing (and this is just my guess so think about it, but take with a pinch of salt) is that while they are exempt from the CVC deal, they may still be effected in the future by the % of the tv rights distribution.

This past week someone from Madrid said that Real Madrid and Barcelona provide 90% of LaLiga income, which Tebas fired back saying that it is not 90%, it is 40% (which is silly for him to say as 2 clubs providing 40% is still a huge amount).

So with LaLiga being in business with CVC, what is to say that LaLiga in the future do not come and say something to the effect "thanks directly to the investment of CVC, the income provided by LaLiga clubs outside of Barcelona and Madrid is 80%" thus reducing the percentage share Barcelona and Madrid receive. It benefits LaLiga, it benefits CVC but it does not benefit the opt-out clubs.

So in a different way they are still at a lose-lose situation. So this is probably why they have interests in going against the deal existing despite not being part of it.

 

[Luftstalag14]

All of this FC Barcelona & Madrid are trying to hold back la Liga which is why they sued would have made more sense if Bilboa wasn't apart of it.

The "growing" of the pie long term would simply entitle CVC to get more actual hard currency, long term than they are projected to receive now, most clubs in la Liga are simply accepting the money because the time to repay is so long, they are like screw it,who knows what will happen in 50 years.

But to recieve 250m & pay back 750m at the bare minimum, is a horrible deal do take unless you are guaranteed to make at least 1B+ off that 250 over the same time period.

Saying la Liga tv revenue is projected to go down by 2030 is imply that a projection, Madrid signs Mbappe & halland, barca get there shit together after years of mismanagement & signs X star players, bringing back the light to the league & the TV deal could go up.

No self respect business or individual actually would for a second thing a 10% interest rate, which is what it basically is, is good terms on any loan..

10%.. i guaranteed if they went to Germany are England with that they would laugh then out the room, 2-4% over 50 years maybe, but 10.

All of that being said, if the clubs that are suing aren't being affect because they opted out, then just leave it alone

Where did you get the take 250m now and pay back 750m later information? Yes the clubs have to repay the money they receive, but virtually at 0% interest rate, not 10%. 10% is the share of annual TV money participating clubs will give up, not the interest rate.

I don’t know what data KMPG used and how they projected a downward trend in La Liga TV money post 2030, but I’d like to think they didn’t pull it out of their ass and their analysts and data scientists know better than us on this forum.

 

[Luftstalag14]

The clubs are probably suing (and this is just my guess so think about it, but take with a pinch of salt) is that while they are exempt from the CVC deal, they may still be effected in the future by the % of the tv rights distribution.

This past week someone from Madrid said that Real Madrid and Barcelona provide 90% of LaLiga income, which Tebas fired back saying that it is not 90%, it is 40% (which is silly for him to say as 2 clubs providing 40% is still a huge amount).

So with LaLiga being in business with CVC, what is to say that LaLiga in the future do not come and say something to the effect "thanks directly to the investment of CVC, the income provided by LaLiga clubs outside of Barcelona and Madrid is 80%" thus reducing the percentage share Barcelona and Madrid receive. It benefits LaLiga, it benefits CVC but it does not benefit the opt-out clubs.

So in a different way they are still at a lose-lose situation. So this is probably why they have interests in going against the deal existing despite not being part of it.

It was our economic VP Romeu who said us and Madrid make up 90%, which is bullocks, not someone from Madrid. The same guy who tipped his hat off to Florentino.

Of course we are all speculating here and I only know as much as the next guy, but I really don’t see how it will hurt the clubs that will not participate. Legally the clubs, regardless of whether they participate in the CVC deal or not, are the producers and title holders of the TV rights so nobody, not even La Liga can bar or strip any club away from taking their share. Yes there are ways and methods for distribution, always have been, however I think the chances of La Liga using the excuse of the three clubs not participating in the deal to diminish their shares are very, very slim.

 

[jamrock]

Where did you get the take 250m now and pay back 750m later information? Yes the clubs have to repay the money they receive, but virtually at 0% interest rate, not 10%. 10% is the share of annual TV money participating clubs will give up, not the interest rate.

I don?t know what data KMPG used and how they projected a downward trend in La Liga TV money post 2030, but I?d like to think they didn?t pull it out of their ass and their analysts and data scientists know better than us on this forum.

I'm pretty sure the reports are that Barca would have received 250m euros for the CVC deal.


Also 10% is the return CVC is asking for,if that suits your mind better but it's really just splitting hairs, CVC will received 10% of the tv revenues for 50 years for providing us 250m euros now, we currently receive 150m euros per year for our tv deal, assuming everything remains as it is for the next 50 years, that's 15m per season for 50 years, that's 750m euros.

10% stake, 10% interesting is all pretty much the same thing & a horrible deal for any club who is remotely thinking about the future, that's a classic bartomeu deal mortgage the future for immediate returns.

People can say what they will about Perez but he is a brilliant business man, it took him probably 10 minutes & is calculator to say what, you give me 250, I give you back 750, helll nooo.


Their is a reason Italy & Germany rejected the offer.

It they had come in & ask for 2-4% of revenues over the next 50 years, I guarantee you Barca & Madrid would have taken it, but 10% that's ridiculous.

 

[mc_lovin]

Where did you get the take 250m now and pay back 750m later information? Yes the clubs have to repay the money they receive, but virtually at 0% interest rate, not 10%. 10% is the share of annual TV money participating clubs will give up, not the interest rate.

I don?t know what data KMPG used and how they projected a downward trend in La Liga TV money post 2030, but I?d like to think they didn?t pull it out of their ass and their analysts and data scientists know better than us on this forum.

The 750ME is the money we lose for our TV rights over the course of 50 years. There's the argument to be made that CVC will help grow the market, but that's pure BS for me. It's essentially a loan with 13% interest rate (figures from our financial director)... when we can get under 2% interest rate with a regular loan (like the Goldmann Sachs deal).

 

[jamrock]

The 750ME is the money we lose for our TV rights over the course of 50 years. There's the argument to be made that CVC will help grow the market, but that's pure BS for me. It's essentially a loan with 13% interest rate (figures from our financial director)... when we can get under 2% interest rate with a regular loan (like the Goldmann Sachs deal).

Exactly the only potential benefit of the CVC deal is that its not technically a loan,(even though it really is a loan) but if we were to go out on the market and get a loan for 250m we would pay back 3% interest as most, lets say the repayment terms is over the exact same 50 years that's 100's of million of dollars saved.

 

[khaled_a_d]

As to following Florentino Perez... ESL which is dead on arrival and we are still clinging onto it, rejections to CVC and being accused of changing our mind last minute, Laporta's economic VP Romeu went out of his way to commend Florentino and tipped his hat off to him..

Eh.

Many good points raised after your post.
-I simply thing Barca & RM feel they get hurt by the deal.
-The 3 top member owned club are going on legal war against the deal (only one who accepted it is Osasona).
-Spanish federation are also going in legal war against it.
-Two other respected leagues rejected it.
-My understanding is, only the current 42 clubs receives financial loan from the deal, but both Liga and Segunda pay for it from TV rights (except those who voted no), but what about teams who receives nothing now and get promoted later? In 20 years there could be 25 different teams entering those divisions, do they get a pay cut from there share? What if Barca B, Castilla ,Bilbao B promoted to Liga 2? do they pay money or not?
What if a team like Celta gets the money now, get relegated, in 2 years they are out of the top 2 tiers and they still have to pay that debt despite financial crisis?
Too many variables.

The thing is, I respect your opinion, but it is tough to judge the club legal and economic team based on opinions here, same with Bilbao and RM.
What you said doesn't prove we are following Perez at all, the 2 clubs are simply in same boat if we are being honest. They are both aren't in best economic situation (RM better than us tbf) and both feel the pressure from EPL and state owned clubs. Tebas simply has gone full mad during Covid and is an old outdated guy who benefited a lot from the golden era of the two clubs. The ESL was supported by other 12 clubs including Atletico, it is just Barca are one of the few clubs that feels zero pressure to bend to UEFA, fans already made and mostly supporting the club in this, no government pressure either. Why should he drops when it barely hurts and if they succeed, they can make huge success story