Messigician
Senior Member
We were in the title race until the end though
FC Barcelona Finances
- Thread starter Luftstalag14
- Start date
companyofcules
Well-known member
Well, my questions were answered after reading the Spanish Law.
Messigician
Senior Member
Womp womp
Loki
Well-known member
Elena Fort: "The VIP box deal? The club has NOT been mortgaged; the sale is only for 30 years. Furthermore, this operation involves only 470 VIP seats, which are hardly even 5% of the total VIP seats." #fcblive
In the end, it was way less than people feared, as usual. Laporta sold 5% of the VIP seats to return back to 1:1. Is it ideal? No, but somehow Laporta needed to return the club back to be able to sign normally while at the same time hold a competitive squad that can fight for all titles. Madrid by the way also sold their VIP tickets not to have a loss in the annual report, but somehow the same people are not barking about them using the same lever.
In the end, it was way less than people feared, as usual. Laporta sold 5% of the VIP seats to return back to 1:1. Is it ideal? No, but somehow Laporta needed to return the club back to be able to sign normally while at the same time hold a competitive squad that can fight for all titles. Madrid by the way also sold their VIP tickets not to have a loss in the annual report, but somehow the same people are not barking about them using the same lever.
TheStig
Member
Yeah it's not so be if it's true, I thought it was a bigger % (it could be, who know if they are lying again). The problem is when you start selling your future it's hard to stop as we see now. Firstly they said it will only happen in the summer of 2022 but we see this was also not true.
Keep in mind that the extra money from renovation of CN was supposed to be mostly for the loan to build the stadium.
Keep in mind that the extra money from renovation of CN was supposed to be mostly for the loan to build the stadium.
Loki
Well-known member
I google-translated a very thorough and very well written answer of a German barca socio in the Transfermarkt forum, as I think it is a very valuable read about the recent nike deal and our overall financial situation. If you want to understand more about this topic than just the dumb twitter headlines, I recommend to read this very well written post. Translation error is for google to fix
----------------
Of course, the numbers of the Nike contract are not officially communicated because confidentiality clauses are built into such mega contracts. the leaks are different. I've already read about 3 million, but also about 5 million euros. only for the CL win (championship and copa are regulated separately, but also identical between men and women). What would be logical to me would be: the amount will be very, very high for women's football, but below average for men's football, so that in terms of "total compensation" it is attractive. Because you shouldn't forget: there is the possibility (the contract is designed to be very long-term) that Barcelona might win the women's and men's CL at the same time. Then you collect both bonuses from Nike. That's why I don't believe that the premium for men was the highest in the industry; that would surprise me from Nike's perspective.
"The compromise of Barça with the female sports team is worth a lot in this contract, with this bonus for the first team of men."
www.mundodeportivo.com
So it doesn't just affect the CL, but all bonuses. Nike pays exactly the same success bonuses to the club for the successes of the women's and men's first teams.
Nike is a US company and women's football is becoming increasingly popular in America. Nike invests in women's football in many places. also in progressive English women's football. see:
sportsbusiness.at
about.nike.com
Of course, it was a central point for Nike to continue to have long-term access to the current global benchmark. This is currently the Barca women's team with 3 CL titles in the last 4 years and some very interesting players like Aitana, Alexia or Selma (in terms of marketing). In addition: in the last 4 years, an FC Barcelona player has always won the women's Ballon d'Or. To underline this: in the 2022/2023 season, Barca recorded an increase in sales of women's merchandising of 275% (!) compared to the previous season.
The new Nike deal is sensational in my opinion. And I'm not even talking about the fixed amounts and the signing fee, which are also very strong. But especially when it comes to self-marketing, licensing rights, etc., Barcelona have negotiated a huge contract, which will bring a lot more money into the club's coffers apart from the fixed amounts, because BLM is already an absolute gold mine and Barca was through the old Nike contract is severely restricted. That was actually the original point of contention between Barca and Nike. To get an idea of what huge additional potential lies dormant for Barcelona:
Until now, in America or Asia, Barca jerseys could ONLY be purchased through Nike (or through football shops) and not directly ONLINE through Barcelona or via a local presence in the form of “Barca stores”. For example, if Nike didn't offer the Barca jersey with the Champions League badge, you couldn't buy it online outside of Europe. That was due to licensing reasons. In fact, Barcelona has not yet exhausted its marketing potential in terms of merchandising in America and Asia. That changes with the new contract. Nike now allows Barcelona to sell merchandising products GLOBALLY online. You no longer see BLM as competition, but rather you work together (Nike will get their share) to exploit the potential. In the end, both sides benefit from this.
Now note: despite these previous restrictions, Barcelona is already number. 1 in terms of merchandising. It's actually crazy and shows the club's brutal steel power.
www.transfermarkt.com
www.fcbarcelona.com
"Barça ranked first by UEFA for kit and merchandising revenues
The Club earned 179 million Euros in the 22/23 season, a 50% increase on the previous season, moving up to first from fifth place last year"
"The recently published UEFA European Club Finance and Investment Landscape report takes a look at financial data and trends in the football sector. The report includes a section on kit and merchandising revenues and FC Barcelona rank first among all football clubs with a total revenue of 179 million Euro, some 34 million more than Real Madrid in second."
That was in 2023. again: due to Nike's restrictions, it has so far not been able to fully exploit the potential outside of Europe in terms of merchandising. Asia and America are big markets. This expected additional income comes on top of the high fixed amount, the bonuses and the signing fee.
There are also many other things planned between Nike and Barca. For example, next season they want to release a “Mamba Collection” in honor of Kobe Bryant.
"Barcelona's 'Mamba Collection' is similar to that produced by Paris Saint-Germain as part of their partnership with Nike – with the 'Air Jordan' logo having featured on several of the French club's kits since 2017."
as a small addition:
These numbers underline why I always laugh when others talk about “loss of image”. what a loss of image? Our sponsorship income is at a record level, our merchandising is No. 1 in the world and at a record level, last season in the Nou Camp over 1 million tickets were sold for games in the Nou Camp. as the first club in the world. loss of image? where? these are facts.
Let's go back a few years? It was sometimes predicted that FC Barcelona's revenue would collapse in exactly these areas without Messi because they no longer had a "franchise player". EXACTLY the opposite happened as these numbers prove. Now they are at record levels and have not even exhausted their marketing potential (including that of Lamine Yamal).
That's why it doesn't surprise me that the opposition in Barcelona is suddenly getting louder and is using the Olmo saga as an impetus to launch a definitive attack:
- The new state-of-the-art stadium is expected to be completed in 1.5 years. large additional income. Marketing is currently going better than expected.
- The salary level is again at a very reasonable level. despite still being somewhat dated. Of course there is always better.
- Barcelona has a highly talented, young team who have shown this season that they can beat any opponent (even significantly) on very good days. But a lot of things have to be right, because other teams are simply further along in their development. Consistency is of course something else that is missing, but: this team is so extremely young, that's simply the other side of the coin when you rely on such young and unfinished players. Lamine, Cubarsi, Gavi (even a Pedri) and Co. are top, but far from being a finished player. Their peak is still a few years in the future. They will get even better (may you be spared from injuries!). I am sure that the competition in Europe is very strong, but we will remain absolutely competitive in the next few years. Madrid brought in Mbappe in the summer and man said he was still relatively young. correct, but that shows the relationships with what kind of guys we are currently opposing. Lamine is a whopping 9 (!) years younger than Mbappe. A friend recently said “absurd, if Mbappe celebrates his 30th birthday, then Lamine can still play in the Spanish U21”.
- FFP problems are slowly but surely being solved and there is freedom on the transfer market (but can also bring dangers, see past) transfer policy
- new mega deal with Nike
- sponsorship income at record levels
- BLM revenues at record levels (merchandising). BLM revenue alone amounted to 110 million euros last year.
Not everything that glitters is gold, not by a long shot, but the Olmo legend wasn't needed to see that. The challenge (and also the corresponding dangers and their consequences for the club) remains huge, but despite all the mistakes that are definitely being made at the moment and the high debt burden (which absolutely has to be addressed!) that hangs over the club, there have already been worse future prospects to take over the helm at FC Barcelona. E.g. in 2021. I'm not worried about Barca in terms of sales, the decisive factor will be how you structure the cost side.
And yes, the last salary-related legacy issues (with the exception of the de Jong contract, which ends in 2026) should be history after this season. Now and in the future it is up to the Barca board (regardless of whether it is Laporta or whoever, he will not remain president forever) to remain sensible. With Messi, for example, it was agreed in 2021 that the 48 million owed would be paid off within 4 years by means of semi-annual installments of 6 million euros. Currently there is still 1 installment outstanding (assuming Barca has always paid, I'm just assuming that for now), which is due in June 2025. After that, the chapter “financial legacy issues” regarding Messi is finished.
----------------
Of course, the numbers of the Nike contract are not officially communicated because confidentiality clauses are built into such mega contracts. the leaks are different. I've already read about 3 million, but also about 5 million euros. only for the CL win (championship and copa are regulated separately, but also identical between men and women). What would be logical to me would be: the amount will be very, very high for women's football, but below average for men's football, so that in terms of "total compensation" it is attractive. Because you shouldn't forget: there is the possibility (the contract is designed to be very long-term) that Barcelona might win the women's and men's CL at the same time. Then you collect both bonuses from Nike. That's why I don't believe that the premium for men was the highest in the industry; that would surprise me from Nike's perspective.
"The compromise of Barça with the female sports team is worth a lot in this contract, with this bonus for the first team of men."
Asamblea Extraordinaria del Barça, en directo hoy: el discurso de Laporta y el acuerdo con Nike, en vivo
Sigue, en vivo, el minuto a minuto de la votación telemática del nuevo contrato de patrocinio del FC Barcelona con Nike
www.mundodeportivo.com
So it doesn't just affect the CL, but all bonuses. Nike pays exactly the same success bonuses to the club for the successes of the women's and men's first teams.
Nike is a US company and women's football is becoming increasingly popular in America. Nike invests in women's football in many places. also in progressive English women's football. see:
Nike verstärkt sein Engagement im englischen Frauenfußball
Nike hat eine mehrjährige Partnerschaft mit dem englischen Fußballverband FA angekündigt, um sein Engagement im Frauenfußball zu verstärken. Im Rahmen dieser Vereinbarung wird Nike offizieller Balllieferant der Barclays Women’s Super League (BWSL), der Barclays Women’s Championship (BWC) und des...
sportsbusiness.at
Nike is Partnering with Liga BBVA MX Femenil to Grow the Future of Women’s Football in Mexico — NIKE, Inc.
Nike becomes the exclusive partner of Mexico’s professional women’s football league with a three-year deal.
about.nike.com
Of course, it was a central point for Nike to continue to have long-term access to the current global benchmark. This is currently the Barca women's team with 3 CL titles in the last 4 years and some very interesting players like Aitana, Alexia or Selma (in terms of marketing). In addition: in the last 4 years, an FC Barcelona player has always won the women's Ballon d'Or. To underline this: in the 2022/2023 season, Barca recorded an increase in sales of women's merchandising of 275% (!) compared to the previous season.
The new Nike deal is sensational in my opinion. And I'm not even talking about the fixed amounts and the signing fee, which are also very strong. But especially when it comes to self-marketing, licensing rights, etc., Barcelona have negotiated a huge contract, which will bring a lot more money into the club's coffers apart from the fixed amounts, because BLM is already an absolute gold mine and Barca was through the old Nike contract is severely restricted. That was actually the original point of contention between Barca and Nike. To get an idea of what huge additional potential lies dormant for Barcelona:
Until now, in America or Asia, Barca jerseys could ONLY be purchased through Nike (or through football shops) and not directly ONLINE through Barcelona or via a local presence in the form of “Barca stores”. For example, if Nike didn't offer the Barca jersey with the Champions League badge, you couldn't buy it online outside of Europe. That was due to licensing reasons. In fact, Barcelona has not yet exhausted its marketing potential in terms of merchandising in America and Asia. That changes with the new contract. Nike now allows Barcelona to sell merchandising products GLOBALLY online. You no longer see BLM as competition, but rather you work together (Nike will get their share) to exploit the potential. In the end, both sides benefit from this.
Now note: despite these previous restrictions, Barcelona is already number. 1 in terms of merchandising. It's actually crazy and shows the club's brutal steel power.
Real Madrid 2nd and Man Utd 5th - Top 20 clubs with highest kit and merchandise revenue
Barcelona are considering ending their long-standing partnership with Nike. The Spanish giant’s kit has been manufactured by Nike for 25 years but there’s been disagreements between the two parties in [...]
Barça ranked first by UEFA for kit and merchandising revenues
The Club earned 179 million Euro in the 22/23 season, a 50% rise on the previous season, moving up to first from fifth place last year
www.fcbarcelona.com
"Barça ranked first by UEFA for kit and merchandising revenues
The Club earned 179 million Euros in the 22/23 season, a 50% increase on the previous season, moving up to first from fifth place last year"
"The recently published UEFA European Club Finance and Investment Landscape report takes a look at financial data and trends in the football sector. The report includes a section on kit and merchandising revenues and FC Barcelona rank first among all football clubs with a total revenue of 179 million Euro, some 34 million more than Real Madrid in second."
That was in 2023. again: due to Nike's restrictions, it has so far not been able to fully exploit the potential outside of Europe in terms of merchandising. Asia and America are big markets. This expected additional income comes on top of the high fixed amount, the bonuses and the signing fee.
There are also many other things planned between Nike and Barca. For example, next season they want to release a “Mamba Collection” in honor of Kobe Bryant.
"Barcelona's 'Mamba Collection' is similar to that produced by Paris Saint-Germain as part of their partnership with Nike – with the 'Air Jordan' logo having featured on several of the French club's kits since 2017."
as a small addition:
These numbers underline why I always laugh when others talk about “loss of image”. what a loss of image? Our sponsorship income is at a record level, our merchandising is No. 1 in the world and at a record level, last season in the Nou Camp over 1 million tickets were sold for games in the Nou Camp. as the first club in the world. loss of image? where? these are facts.
Let's go back a few years? It was sometimes predicted that FC Barcelona's revenue would collapse in exactly these areas without Messi because they no longer had a "franchise player". EXACTLY the opposite happened as these numbers prove. Now they are at record levels and have not even exhausted their marketing potential (including that of Lamine Yamal).
That's why it doesn't surprise me that the opposition in Barcelona is suddenly getting louder and is using the Olmo saga as an impetus to launch a definitive attack:
- The new state-of-the-art stadium is expected to be completed in 1.5 years. large additional income. Marketing is currently going better than expected.
- The salary level is again at a very reasonable level. despite still being somewhat dated. Of course there is always better.
- Barcelona has a highly talented, young team who have shown this season that they can beat any opponent (even significantly) on very good days. But a lot of things have to be right, because other teams are simply further along in their development. Consistency is of course something else that is missing, but: this team is so extremely young, that's simply the other side of the coin when you rely on such young and unfinished players. Lamine, Cubarsi, Gavi (even a Pedri) and Co. are top, but far from being a finished player. Their peak is still a few years in the future. They will get even better (may you be spared from injuries!). I am sure that the competition in Europe is very strong, but we will remain absolutely competitive in the next few years. Madrid brought in Mbappe in the summer and man said he was still relatively young. correct, but that shows the relationships with what kind of guys we are currently opposing. Lamine is a whopping 9 (!) years younger than Mbappe. A friend recently said “absurd, if Mbappe celebrates his 30th birthday, then Lamine can still play in the Spanish U21”.
- FFP problems are slowly but surely being solved and there is freedom on the transfer market (but can also bring dangers, see past) transfer policy
- new mega deal with Nike
- sponsorship income at record levels
- BLM revenues at record levels (merchandising). BLM revenue alone amounted to 110 million euros last year.
Not everything that glitters is gold, not by a long shot, but the Olmo legend wasn't needed to see that. The challenge (and also the corresponding dangers and their consequences for the club) remains huge, but despite all the mistakes that are definitely being made at the moment and the high debt burden (which absolutely has to be addressed!) that hangs over the club, there have already been worse future prospects to take over the helm at FC Barcelona. E.g. in 2021. I'm not worried about Barca in terms of sales, the decisive factor will be how you structure the cost side.
And yes, the last salary-related legacy issues (with the exception of the de Jong contract, which ends in 2026) should be history after this season. Now and in the future it is up to the Barca board (regardless of whether it is Laporta or whoever, he will not remain president forever) to remain sensible. With Messi, for example, it was agreed in 2021 that the 48 million owed would be paid off within 4 years by means of semi-annual installments of 6 million euros. Currently there is still 1 installment outstanding (assuming Barca has always paid, I'm just assuming that for now), which is due in June 2025. After that, the chapter “financial legacy issues” regarding Messi is finished.
Birdy
Senior Member
I give her that she publicly talked about the audacity of Vinicius only 2 game suspension and the double standards
Messi983
Senior Member
Elena Fort, vice president of Barça, did not know/want/could tell Jordi Basté the name of the Arab companies that promote the new leverage (covert sale of assets) that has gotten the club and Laporta out of the quagmire. Some Qataris and a Dubai capital company pay 100 million and do not mention the name of the investment companies. Opacity only feeds the trapped cat. It was strange that no one assisted the spokesperson as they did from the club, to correct her for having said that the million in Darren Dein's commission fees for the Nike thing did not go through "Compliance." Just as they helped her with one thing, they did not do it with the other and the name of the pagans who allow us to reach the 1:1 norm and remove the precautionary measure from the CSD, remains hidden. For now.
On the other hand, Fort did give some information about the operation. In exchange for 100 million euros, these investors have purchased the license to use 470 VIP seats at the Camp Nou for 30 years. According to what she said, these seats also have a price that ranges between 21,000 euros for the cheapest and 80,000 for the most expensive, depending on the location in the stands. Let's multiply, then. Taking the lowest price band, 470 seats at 21,000 euros for each of the 30 seasons is 296 million. And that, maintaining a fixed price without increases in three decades. That is, it had a value of 300 million and “only” 100 will be received.
The situation saves Barça in the very short term, but the many who think that it is “badly sold” are right. The round deal is for investors who “have the right to exploit the seats to third parties.” That is, they will be able to resell them at much more expensive prices. Don't tell me that the member doesn't have the right to know who will make the hit of the century thanks to Barça? Not even to envy them.
On the other hand, Fort did give some information about the operation. In exchange for 100 million euros, these investors have purchased the license to use 470 VIP seats at the Camp Nou for 30 years. According to what she said, these seats also have a price that ranges between 21,000 euros for the cheapest and 80,000 for the most expensive, depending on the location in the stands. Let's multiply, then. Taking the lowest price band, 470 seats at 21,000 euros for each of the 30 seasons is 296 million. And that, maintaining a fixed price without increases in three decades. That is, it had a value of 300 million and “only” 100 will be received.
The situation saves Barça in the very short term, but the many who think that it is “badly sold” are right. The round deal is for investors who “have the right to exploit the seats to third parties.” That is, they will be able to resell them at much more expensive prices. Don't tell me that the member doesn't have the right to know who will make the hit of the century thanks to Barça? Not even to envy them.
companyofcules
Well-known member
Only 475 seats sold in the VIP for the 100 mil
So that's 5% of the total, and there were reports that 95% of the VIP seats had already been vacated on 8-10 year contracts which is going to bring in around 120m a year, Barca Hospitality manage those seats.
The 5% that is sold now brings cash instantly and won't bring in cash for 30 years. The buyer will manage those seats.
Are the VIP seats the best source of income in new stadium? 120m per year for around 9000 seats seems great.
Messi983
Senior Member
Yes but for 30 years. Still doesn't look much.
I'm sure Qataris will get that investment back in a few years.
One seat is equal to around 15k profit per year. We sold 475 seats which equals 7m per year. Over 30 years that would be 213m. So we lose roughly 113m over the course of 30 years to get a quick cash injection now. Will take 14 years for Qataris to start making a profit. Rough estimate.
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