FC Barcelona Finances

[JamDav1982]

Tv rights market collapsing would be worse for the company investing than Barca really in terms of this deal alone.

La Liga would have to approve any deal that was not the one offered by CVC.

Would guess if they approve it then it would be in line with the same % of what can be spent in certain areas as the CVC one was although Barca were pushing for higher % that cn be spent on the salary cap.

 

[Porque]

Well as it is with a bank and not a VC or investment fund, I reckon we are going to take complete liability to repay if rights did collapse or can't be fulfilled.

On the rest makes sense. But LaLiga should have taken the % for each implementation on a club by club basis. Certain clubs will be behind and certain ahead on the different areas.

 

[JamDav1982]

Well as it is with a bank and not a VC or investment fund, I reckon we are going to take complete liability to repay if rights did collapse or can't be fulfilled.

On the rest makes sense. But LaLiga should have taken the % for each implementation on a club by club basis. Certain clubs will be behind and certain ahead on the different areas.

Dont agree.

That is part of the risk the bank would take and it would have to fall dramatically for them not to get their money back anyway.

 

[jamrock]

The bank isn't gonna give us 600m, with only future TV rights as collateral & if TV rights go to shit, they take the L, BOA didn't become BOA by making stupid deals, something else will be given up if for whatever reason they can't recoup their loan amount in the way agreed.

Standard loan policies, question is what else did we give as collateral.

25% for 25 years better than 40, something has to give, bad deal but better than before, have to do what we have to do right now, club is in a existential financial crisis.

I doubt this is simply to pay wages.

 

[Porque]

Dont agree.

That is part of the risk the bank would take and it would have to fall dramatically for them not to get their money back anyway.

I'm looking for more sources as I am not a member of ElConfidential (the one who originally broke the BOA story). But this is from ARA.cat.

With CVC, the condition set by Tebas is to sign in exchange for 270 million for 10% of television rights for 50 years and an spending plan that would only leave just over 40 million for the sports project. Without the protection of the president of the employer, CVC would contribute the same amount for 8% of the rights without stating it as debt, but as capital, but fair play would not be advantageous either. Faced with this impasse, Bank of America proposes to keep up to 600 million in two tranches (debt and capital) for a higher percentage of rights, but less in sight (25).
https://www.ara.cat/esports/barca/bank-of-america-tambe-postula-salvar-barca-ruina_1_4392181.html

From this it seems that a % of the 600m is repayable.

 

[Luftstalag14]

It is a bad deal anyways but if we have to repay a certain % of the 600m to Bank of America (without recovering the 25% right) then it might even be a worse deal than CVC. If we can recover the 25% at one point, I don’t mind repaying it.

 

[jamrock]

So apparently we need at least half a billion to get us back to a decent state, which explains all these negotiations & considering deals we know aren't on the best terms.

Club clearly in an existential financial crisis and these moves aren't about signing a bunch of 30 year olds has to many here keep harping on, had to be alot deeper than that to even consider such a deal.

I hope after all this time, they can come up with a solution that while far from perfect will keep us solvent in the near to medium term as we try to turn things around long term..

hope these things never happened again, which is really all these numbers are about, keeping us going today so we can fight tomorrow.

Their needs to be rules out in place by the club not just la Liga that prevents someone like bartomeu coming in & bringing to the brink of bankruptcy ever again.

 

[gasgas]

 

[wisconsincule]

Just sell the team. Get some outside investors who will hold the president/board accountable for their actions.

Bartomeu should have to go to jail for the problems he has caused. It’s unbelievable he can walk away from this disaster with no punishment.

 

[jamrock]

In a perfect world we wouldn't be run by socios, a billionaire owner would fix everything real quick.

 

[JamDav1982]

The 500m odd mark is nothing new for what club would need to get back in line with the salary cap now and deferrals to come.

It is the basis of the whole discussion of how club should proceed over next few years.

That part of his statement was widely known.. but the idea it is needed to save the club is a bit dramatic and aimed at influencing socios to vote for it.

None of the deferrals he mentions are due this summer bar Roberto who rather than pay him it when contract ends they renewed.

Hopefully they used that 540m CVC deal to negotiate with Tebas on % can be used for salary cap and can use that as leverage for better deals they want La Liga to approve.

As the club say themselves.. that deal puts Barca in worst position than are now so seems a bit bizarre they negotiated it to point of agreement to then back out if not part of bigger plan.

 

[Luftstalag14]

In a perfect world we wouldn't be run by socios, a billionaire owner would fix everything real quick.

For me that is much worse than having the likes of Bartomeu and Laporta running the club. Club is subject to the whims of whatever the billionaire owner wants, with little considerations of what the fans want and inputs from them. I'd be very happy if Madrid gets taken over by someone like that, but not us.

Revenue-wise we have been fine right before COVID (for the first time Madrid is getting more commercial revenue than us this year, for example), we were fucked mostly by the ridiculous and ballooning wages under Bartomeu. In the future if we can control the wages and maintain them on the same level as those like Madrid, Bayern and other clubs, while keep exploring new revenues etc., we should be fine. The silver lining of this financial crisis we are in is, if Laporta can manage to reduce the salary mass further, it will be truly a blessing and good work for the future.

 

[jamrock]

For me that is much worse than having the likes of Bartomeu and Laporta running the club. Club is subject to the whims of whatever the billionaire owner wants, with little considerations of what the fans want and inputs from them. I'd be very happy if Madrid gets taken over by someone like that, but not us.

Revenue-wise we have been fine right before COVID (for the first time Madrid is getting more commercial revenue than us this year, for example), we were fucked mostly by the ridiculous and ballooning wages under Bartomeu. In the future if we can control the wages and maintain them on the same level as those like Madrid, Bayern and other clubs, while keep exploring new revenues etc., we should be fine. The silver lining of this financial crisis we are in is, if Laporta can manage to reduce the salary mass further, it will be truly a blessing and good work for the future.

Billionaire ownership groups have worked out well for some clubs, I would even say for most big clubs, so it's not as bad as being made out, but I would rather us stay as members owned but times like these one does wish for a magic wand to fix things.

Agreed re salaries, which is why I said in my earlier post we need something in the clubs bilaws that prevents this from ever happening again, pegging salaries to a certain percentage of income that we can never go above.

 

[Luftstalag14]

Billionaire ownership groups have worked out well for some clubs, I would even say for most big clubs, so it's not as bad as being made out, but I would rather us stay as members owned but times like these one does wish for a magic wand to fix things.

Agreed re salaries, which is why I said in my earlier post we need something in the clubs bilaws that prevents this from ever happening again, pegging salaries to a certain percentage of income that we can never go above.

That's a good idea, I might just steal it and submit it to the club (right now the club is soliciting ideas from socis to update the club's statutes, we have until June 16th to submit ideas and suggestions), we will see if it will fly.

 

[JamDav1982]

The league already has rules in place in relation to % of salaries and revenue.

There is no need for Barca to introduce that again within the club.

What is the suggestion? Lower than 70% as now? Would put Barca at a disadvantage and wouldnt have stopped the current problems either.

Also the new UEFA FFP is going to be % of revenue on salaries.