FC Barcelona Finances

[Luftstalag14]

The more I look at the figures published by La Liga above, the more I think it makes no sense. OK, so we are getting 97m because of our huge loss of 481m last season, which you might think is proportional to our losses (or is it? We had a loss of 97m from the 19/20 season, which saw our salary cap going down by 42% from 656m in 19/20 season to 382m in 20/21 season, but then to go from 382m to this 97m is a 75% reduction, when our losses were more than 75% than before? So what the heck is this based on?), but then if you look at clubs such as Real Madrid and Sevilla etc., it makes you question the sanity of those La Liga buffoons and what the hell they are doing.

- Real Madrid managed to returned black numbers (I very much question their accounting, by oh well), but it was barely anything (874k), how the hell did that justify La Liga increasing their salary cap by 157%, from 468m in 20/21 to 739m of 21/22?

- Sevilla had a loss of 41m in 20/21, how the hell did that justify those La Liga fuckheads like Jose Guerra to increase their salary cap by 8%, from 185m to 200m?

Are these salary cap number based on revenue figures? If so, our revenues decreased but are still on par with Real Madrid's, if not more. Loss? It makes no sense. So what the heck are they based on?

Fuck La Liga and its retards.

 

[cro-man]

Why are they constantly talking about how we could have signed messi if we wanted to? Whats the idea behind this? Also this bullshit with salary cap. This is all about getting controll of our interests. Fucking garbage league. Looking at the french league where they are trying their best to make their league more attractive and here they are saboating their their own league and their biggest clubs.

 

[Luftstalag14]

What is also apparent in those new numbers is how precarious the situation of Valencia currently is. Of course, unlike us, they can be "saved" by a sale. There were rumours of Lim passing on the club to his Malaysian friend previously.

The most flabbergasting numbers are how Madrid shoot up higher to pre-covid times inspite of their expenditure on Stadium renovations.

For us, obvious it is also impossble to reduce salary to less than a million. The amortization Laporta done is good for the physical health of the club but poor for the virtual health that this Salary Cap is. What it also does is reduce our hand when selling/renegotiating sponsorships and sales as stakeholders will know we are absolutely desperate and can not take the optimal deal.

If Saudi propose prepostrous amounts to be tied to Barcelona in a handshake way and get similar mileages and connected brand values as Abu Dhabi with City and Qatar with PSG then why not? It is not as if Qatar is any better than them.

I don't think the reduction in amortization was bad at all, it helped us bring down our total salary mass since amortization is part of the La Liga salary cap, and I don't think it has anything to do with our selling/negotiation of sponsorships, if anything, it should have a positive impact since it shows we are making efforts to make ourselves financially healthier and more viable. Facts like we lost Messi, we are struggling in La Liga and Europe are the things that will hurt us when it comes to selling sponsorships, because they make us less competitive and appealing. That said, La Liga's salary cap shackle will make us more desperate absolutely, it will make us more desperate to get as much revenue as we can to not incur more loss in order to up our salary cap for the next season (so we think).

The rumored proposal from Saudi Arabia is much more generous and larger than any sponsorship deal we have seen in the sport industry. I very much doubt it is just a simple low-interest loan and a gesture of good will from the Saudis, there will be fine prints and strings attached. Even our loan with Goldman Sachs stipulates that we will have to surrender a portion of our TV money if we default. We can't afford any risks of allowing the club to be indirectly fallen into the hands of an outside entity, whoever that is.

 

[mc_lovin]

I would love to see the equation to calculate the salary cap. But for us the ~90ME could very well make sense. Simplest (and overly simplified) would be something like "salary cap=(revenue-losses)*0.7". That would be roughly the reported figure, but obviously a wild guess on my part. Generally I don't think there are dark forces at work, I am sure the rules are transparent for the clubs (opposed to the fans).

But again, I don't think it matters much next year. All fantasy numbers imposed by the League, who move very fast in one direction or the other. I like the idea, but the execution is flawed. Our board seems to play the system, getting very low numbers this year looks like a job well done (and putting the losses on Barto, I think he's still responsible).

The rumored proposal from Saudi Arabia is much more generous and larger than any sponsorship deal we have seen in the sport industry. I very much doubt it is just a simple low-interest loan and a gesture of good will from the Saudis, there will be fine prints and strings attached. Even our loan with Goldman Sachs stipulates that we will have to surrender a portion of our TV money if we default. We can't afford any risks of allowing the club to be indirectly fallen into the hands of an outside entity, whoever that is.

It's just a loan with extra steps.

 

[behindbrowneyes]

The more I look at the figures published by La Liga above, the more I think it makes no sense. OK, so we are getting 97m because of our huge loss of 481m last season, which you might think is proportional to our losses (or is it? We had a loss of 97m from the 19/20 season, which saw our salary cap going down by 42% from 656m in 19/20 season to 382m in 20/21 season, but then to go from 382m to this 97m is a 75% reduction, when our losses were more than 75% than before? So what the heck is this based on?), but then if you look at clubs such as Real Madrid and Sevilla etc., it makes you question the sanity of those La Liga buffoons and what the hell they are doing.

- Real Madrid managed to returned black numbers (I very much question their accounting, by oh well), but it was barely anything (874k), how the hell did that justify La Liga increasing their salary cap by 157%, from 468m in 20/21 to 739m of 21/22?

- Sevilla had a loss of 41m in 20/21, how the hell did that justify those La Liga fuckheads like Jose Guerra to increase their salary cap by 8%, from 185m to 200m?

Are these salary cap number based on revenue figures? If so, our revenues decreased but are still on par with Real Madrid's, if not more. Loss? It makes no sense. So what the heck are they based on?

Fuck La Liga and its retards.

The more I think about it, the more I believe this is just lots of heavy smoke for "nothing". The only real consequence being that Barca only can register new players in winter through that 25%rule we already know from the summer window.

For the summer window, revenues from the 30th of June 2022 (or more estimations from late Spring) will be the basis for next seasons salary cap. All we have to do is making no (significant) losses or better even a profit and we should be fine. 70% of current's fiscal year should be more than what we are currently spending on players wages. The major loss of last season is hurting us only short-term, but is helping us already next summer because of that unplanned amortisations.

As for Real Madrid, they've made no losses (although questionable like you mentioned), have similar revenue like Barca and made some unplanned but significant profits by selling Varane and Odegaard. Might be the reason why their estimated salary cap is that high.

But like I said, I believe this will change until summer and those current numbers are merely relevant for the winter transfer window.

 

[khaled_a_d]

Might as 3% chance or something? Because the board has manipulated our accounts to make it almost impossible to happen.
Another loss and the board are on the edge of being automatically sacked, they won't risk that. It will be a disastrous failure by the board, especially considering there are ways to get around it (see Pjanic/Arthur deal)
Nah, they have put all their eggs on this not happening.

 

[Luftstalag14]

I would love to see the equation to calculate the salary cap. But for us the ~90ME could very well make sense. Simplest (and overly simplified) would be something like "salary cap=(revenue-losses)*0.7". That would be roughly the reported figure, but obviously a wild guess on my part. Generally I don't think there are dark forces at work, I am sure the rules are transparent for the clubs (opposed to the fans).

But again, I don't think it matters much next year. All fantasy numbers imposed by the League, who move very fast in one direction or the other. I like the idea, but the execution is flawed. Our board seems to play the system, getting very low numbers this year looks like a job well done (and putting the losses on Barto, I think he's still responsible).



It's just a loan with extra steps.

I don't think there are dark forces at work, nor do I think La Liga salary cap is a bad thing (I previously said I like it because it makes sure clubs are sustainable financially), it is just that the salary cap calculation is making little sense with the Madrid and Sevilla examples above. Nobody seems to know what they are based on. Revenues? Losses? Debt?

Loan with extra steps? Sounds too fishy.

 

[mc_lovin]

Loan with extra steps? Sounds too fishy.

But that's exactly what it is (if the offer even existed). 1.5BE loan with low interest rate for 'aggressively' advertising Saudi Arabia. Nothing more, nothing less. They don't buy parts of the club (like the proposed CVC or Barca corporate deal, where we actually would get money).

 

[Luftstalag14]

The more I think about it, the more I believe this is just lots of heavy smoke for "nothing". The only real consequence being that Barca only can register new players in winter through that 25%rule we already know from the summer window.

For the summer window, revenues from the 30th of June 2022 (or more estimations from late Spring) will be the basis for next seasons salary cap. All we have to do is making no (significant) losses or better even a profit and we should be fine. 70% of current's fiscal year should be more than what we are currently spending on players wages. The major loss of last season is hurting us only short-term, but is helping us already next summer because of that unplanned amortisations.

As for Real Madrid, they've made no losses (although questionable like you mentioned), have similar revenue like Barca and made some unplanned but significant profits by selling Varane and Odegaard. Might be the reason why their estimated salary cap is that high.

But like I said, I believe this will change until summer and those current numbers are merely relevant for the winter transfer window.

Again, I am not sure if La Liga will just let us off the hook so easily like that. Jose Guerra already spoke of "sanctions". We will have to see.

 

[Luftstalag14]

Might as 3% chance or something? Because the board has manipulated our accounts to make it almost impossible to happen.
Another loss and the board are on the edge of being automatically sacked, they won't risk that. It will be a disastrous failure by the board, especially considering there are ways to get around it (see Pjanic/Arthur deal)
Nah, they have put all their eggs on this not happening.

Laporta and his board have proposed to suspend that particular statute, Article 67 of the Articles of Association, which requires the board to restore a situation of capital imbalance or loss within two seasons and to maintain a certain proportion between net debt and the level of EBITDA. It is one of the proposals going though the General Assembly next month and is expected to pass.

The way I see it, Laporta probably foresees a loss again for this season and is preparing for it. Of course he and his board shouldn't step down because of it.

 

[Luftstalag14]

But that's exactly what it is (if the offer even existed). 1.5BE loan with low interest rate for 'aggressively' advertising Saudi Arabia. Nothing more, nothing less. They don't buy parts of the club (like the proposed CVC or Barca corporate deal, where we actually would get money).

We don't know that, do we? It is a rumor with wishy washy details and the whole thing sounds too good to be true. Sure the Saudis are not short of money and therefore not seeking big returns monetarily but who knows what they have in mind?

Even if it was just a good-will loan with zero strings attached, I am still not sure if we can take it on. We don't want to dive into the pile of money and think it is ours and start the spending spree. We might not have the ability to repay when the time comes, if we go careless.

 

[Messigician]

Laporta and his board have proposed to suspend that particular statute, Article 67 of the Articles of Association, which requires the board to restore a situation of capital imbalance or loss within two seasons and to maintain a certain proportion between net debt and the level of EBITDA. It is one of the proposals going though the General Assembly next month and is expected to pass.

The way I see it, Laporta probably foresees a loss again for this season and is preparing for it. Of course he and his board shouldn't step down because of it.

They should, Socios shoukd vote against suspending it. The management of Laporta has been a disaster

 

[i_bleed_blaugrana]

Barca will reveal the due diligence, full financial audit and the economic ruin to the socis on Wednesday. The possibility of becoming a ?SAD? (owned by a corporation, not the club?s members) is closer than ever.

- @elperiodico

https://twitter.com/barcauniversal/status/1444443915231375361?s=21

Can they actually do this? I am appalled. Seems like sensationalism so I hope it is just that. Having a hard time finding anything else with this tone other than this tweet. Thoughts [MENTION=13941]Luftstalag14[/MENTION]?

 

[khaled_a_d]

Barca will reveal the due diligence, full financial audit and the economic ruin to the socis on Wednesday. The possibility of becoming a ?SAD? (owned by a corporation, not the club?s members) is closer than ever.

- @elperiodico

https://twitter.com/barcauniversal/status/1444443915231375361?s=21

Can they actually do this? I am appalled. Seems like sensationalism so I hope it is just that. Having a hard time finding anything else with this tone other than this tweet. Thoughts [MENTION=13941]Luftstalag14[/MENTION]?

Have hard time seeing it, after refusing to sell some of the club assets and the CVC deal, selling the whole club is inconsistent with what Laporta did.
Unless this was the plan all along, but even in such case he loses a lot of his power through this and move from president to an employee

 

[i_bleed_blaugrana]

Have hard time seeing it, after refusing to sell some of the club assets and the CVC deal, selling the whole club is inconsistent with what Laporta did.
Unless this was the plan all along, but even in such case he loses a lot of his power through this and move from president to an employee

And even if Laporta wants it, a whole other thing to get the socis to swallow it as well.