FC Barcelona Finances

[El Gato]

I don't know, perhaps Soccerex really meant debt when they said net debt?

Well, Barca do specifically say 'net' debt in their 16/17 statement and Soccerex specifically says 'net debt' also. So both can't be correct.

Net debt = gross debt - (cash + cash equivalents, treasury etc. + transfers income).

Not quite sure what they mean by 294M net debt for RM and double that for Barcelona when statements of both clubs do refer to net debt.

By the way does Real Madrid publish annual report like ours?

Yes. Just gotta type in 'annual economic report realmadrid' in google and it throws up the latest one.

https://www.realmadrid.com/en/members/member-card/annual-reports
PDF - https://www.realmadrid.com/media/document/annual-report-real-madrid-17_18.pdf

Charts clearly show consistent reduction of net debt and that club is operating with surplus cash (page 298).

 

[Luftstalag14]

Well, Barca do specifically say 'net' debt in their 16/17 statement and Soccerex specifically says 'net debt' also. So both can't be correct.

Net debt = gross debt - (cash + cash equivalents, treasury etc. + transfers income).

Not quite sure what they mean by 294M net debt for RM and double that for Barcelona when statements of both clubs do refer to net debt.

Thanks. I cringed when I skimmed through the pages of your annual report but it does look neat. Fuck I hate Real Madrid.

That's what I am saying, I think Soccerex's figures are actually debt instead of net debt as they stated. In your case, you still have a sizable debt but you have more cash on hand than your total debt so your net debt is negative. I can't explain our case though, I don't understand how we could have negative net debt when our total debt is ballooning.

 

[Moe]

Via Marca

US investment funds loan 140 million euros to Barcelona

Barcelona have secured a 140 million euro loan from two US investment funds, with 1.5 percent interest for the next five years.The Catalans, who used to get such money boost through several deals with major banks, have assured that the financial situation of the club is stable.As reported by El Pais, the Blaugrana highlight the fact that the Josep Bartomeu board have generated profits over the last seasons and they didn't rule out needing the money to finance signings.Ajax midfielder, Frenkie de Jong, has already signed for this summer on a 75m euros fee, plus 11m euros in add-ons and although the idea is compensating such transfers with sales, Barcelona want to make sure there is money available at any moment.



On the other hand, Victor Font, who has recently announced his decision to stand for election to the presidency, has expressed his concerns on the current board's financial policy.
"They don't generate enough resources and ordinary expenses are higher than revenues, so you have to sell players to avoid generating losses and that's a time bomb," he said."[The debt raise] is superior to that explained by the club."

 

[Luftstalag14]

This news is very concerning. We are resorting to borrowing 140m in order to buy players? It goes to show how dire the financial situation of the club is. Are we going to keep borrowing money to finance signing players? This is not sustainable at all.

And that means when the time is up to repay the loans (I am hoping we will pay in small installments over 5 years), this will impact future signings down the road.

 

[FinBarcelonafan]

This news is very concerning. We are resorting to borrowing 140m in order to buy players? It goes to show how dire the financial situation of the club is. Are we going to keep borrowing money to finance signing players? This is not sustainable at all.

And that means when the time is up to repay the loans (I am hoping we will pay in small installments over 5 years), this will impact future signings down the road.

Exactly. It sounds very concerning. Well put..

 

[Luftstalag14]

More details on the 140m loan from the US

http://www.sportspromedia.com/news/fc-barcelona-news-loans-transfer-funds

 

[shadows]

Ohh boy ..its probably going to end with Messi retiring and the dark era of pre-Laporta isnt it, thanks to the incompetence of the current board (especially Sandro onwards) ..I am not sure why with these problems do they continue to splurge on expensive contracts

 

[Devils]

1.5% interest.

Stunning deal. Brilliant by the board.

 

[CanadianCanadian]

I've heard conflicting reports. Some say it's for the Espai project and others have said it is only for player purchases.

1.5% Interest is a great term regardless, especially if it has to be paid after 5 years.

 

[DonAK]

I read it's for player purchases. The club want to have money in the account in case a significant opportunity arrives on the market so they can move quickly.

 

[SeloBarca]

Ohh boy ..its probably going to end with Messi retiring and the dark era of pre-Laporta isnt it, thanks to the incompetence of the current board (especially Sandro onwards) ..I am not sure why with these problems do they continue to splurge on expensive contracts

Its for the "legacy"
Sign alot of players now and leave all the problems for the next generation to handle.
Something we see in alot of in the world, in all areas.

 

[Joan]

1.5% interest.

Stunning deal. Brilliant by the board.

Right. Whatever it's for. Great move.

 

[Luftstalag14]

Even Bartomeu himself expressed concerns about the growing percentage of revenues spent on wage, in his latest interview with Radio Kanal Barcelona.

 

[Leo_Messi]

Been hearing the same doomsday stories for more than 1 decade now and in the meantime the money-machine that is FCB, has only grown on all levels. The board has done really well in this regard. The wage bill should not be a reason for concern as this is the doing of the few remaining seniors who do not have many seasons left. Messi being the special case. We pay him an astronomical sum of money but we get much more in return economically and sporting wise for having him around so it is naturally a very good deal as well.

That alone and the interest rate (1.5%) is great, great business as well.

Font has to talk about something. The same old song that Rosell also used prior to 2010.

 

[Vilarrubi]

I read it's for player purchases. The club want to have money in the account in case a significant opportunity arrives on the market so they can move quickly.

De Ligt