FC Barcelona Finances

[Luftstalag14]

I don't understand it either. How can they say 100% of the non-sporting salaries will be paid, but also do an ERTE? It's a contradiction.

They announced ERTE first (last week) before today's agreement on pay cut came out. Perhaps the club went with ERTE as a precaution in case they need to cut their pay in a mandatory manner, in case an agreement could not be reached?

Now with agreement made and the 70% pay cut from the sporting side I think ERTE would not be applicable to the non-sporting side of the club employees since they will get 100% of their pay. Which leaves the ERTE still in place to cover only the sporting side of the club employees, perhaps they need to have ERTE to justify and sustain the pay cut and make it legal?

 

[malvolio]

It is a power struggle not these heroic players trying to rid the club of evil board for the greater good.

couldn't give a shit about the wage cut thing. i've said it from the start that people tend to get carried away about stuff like this.

what i wanted to point out is that not everything is a conspiracy and the fact that some of you try to spin around just to trash the players when maybe it's just not the case.

No need to be a company man at a time like this. Truth is, you don't know how the players are behind the scenes either. However, everyone knows there is a terrible board and a Club De Amigos. It's understandable why there would be some users blaming the players.

so if neither of us knows shit, wouldn't it be logic to follow the official stuff? if you just want scandal....

 

[Alik]

They announced ERTE first (last week) before today's agreement on pay cut came out. Perhaps the club went with ERTE as a precaution in case they need to cut their pay in a mandatory manner, in case an agreement could not be reached?

Now with agreement made and the 70% pay cut from the sporting side I think ERTE would not be applicable to the non-sporting side of the club employees since they will get 100% of their pay. Which leaves the ERTE still in place to cover only the sporting side of the club employees, perhaps they need to have ERTE to justify and sustain the pay cut and make it legal?

Maybe. Hopefully it is like that.

 

[DonAK]

They announced ERTE first (last week) before today's agreement on pay cut came out. Perhaps the club went with ERTE as a precaution in case they need to cut their pay in a mandatory manner, in case an agreement could not be reached?

Now with agreement made and the 70% pay cut from the sporting side I think ERTE would not be applicable to the non-sporting side of the club employees since they will get 100% of their pay. Which leaves the ERTE still in place to cover only the sporting side of the club employees, perhaps they need to have ERTE to justify and sustain the pay cut and make it legal?

Maybe. Hopefully it is like that.

If that was the case Messi wouldn't say the players would pay out of their pocket to ensure the employees are paid 100% of their salaries.

It sounds like they're proceeding with the ERTE, but that the players will cover the 30% of their salaries the employees will lose.

 

[Luftstalag14]

If that was the case Messi wouldn't say the players would pay out of their pocket to ensure the employees are paid 100% of their salaries.

It sounds like they're proceeding with the ERTE, but that the players will cover the 30% of their salaries the employees will lose.

If I am not mistaken, Messi only said the players were trying to find some "formula" to help the club and its employees and that's quite wishy washy stuff if you ask me. The club's official statement essentially said the salaries forfeited by the players from the pay cut and what the club would be contributing, together will guarantee 100% of the salary for the non-sporting employees of the club, which sounds reasonable to me.

I don't think the players would be contributing additional money on top of the 70% pay cut they agreed to cover for the non-sporting staff.

 

[serghei]

Don't understand the big fuss about it. Club is in financial trouble due to not being able to earn revenue in this time. No games, no tickets, no tourism, no nothing. So players salaries, which are enormous, biggest in the world, had to take a big hit. It's normal. Our revenue this year will probably be 100 millions lower or so. Or even way more if this goes on.

This is not PSG, where the sheik or the emir or whoever just covers the salaries no problems. Barcelona spends what they earn. Since they don't earn much these days, they can't spend much either.

 

[Andresito]

That mistrust helps to explain why a negotiated settlement proved hard to reach, despite the players’ initial willingness to reduce their salaries.
That those negotiations were played out in the press, with players well aware of the relationships the club has with certain media, worsened the situation.
Reports were seen by some of the players as deliberate leaks from the board, designed to point the finger of blame at them for a crisis not of their making and forcing them into a corner.
Messi was not prepared to let that pass.

https://www.theguardian.com/footbal...taff-at-barcelona-but-hits-out-at-board-again

 

[MTL_Barca]

Will be funny when the board goes back to business later this year, spending money the club doesn't have on new galactico signings.

Don't get me wrong i totally think a reduction of salary is justified and the players would look greedy is fuck for refusing it but normally these 70% shouldn't be absolutely necessary at a club like Barca, especially not to cover the wages of the workers in the offices etc. If they are then they should drastically adjust the way they manage the finances, but with elections 2021 that seems unlikely.

 

[serghei]

Will be funny when the board goes back to business later this year, spending money the club doesn't have on new galactico signings.

Don't get me wrong i totally think a reduction of salary is justified and the players would look greedy is fuck for refusing it but normally these 70% shouldn't be absolutely necessary at a club like Barca, especially not to cover the wages of the workers in the offices etc. If they are then they should drastically adjust the way they manage the finances, but with elections 2021 that seems unlikely.

Yea, the issue is the salaries are taking a huge chunk of our revenue. So if the revenue drops, and the salary don't, we simply can't pay them. So if suddenly you are having periods with very low income, it becomes very hard to pay the same wages.

Other clubs don't spent most of what they take in and have considerably lower wages. They are commercial societies that operate on high margins of profit. So they can simply use a chunk of the fat profit they've made in recent period to be able to pass this period without reducing the wages too much. On top of that we also have a lot of money which we put into transfers in recent period.

 

[MTL_Barca]

Yea, the issue is the salaries are taking a huge chunk of our revenue. So if the revenue drops, and the salary don't, we simply can't pay them. So if suddenly you are having periods with very low income, it becomes very hard to pay the same wages.

Other clubs don't spent most of what they take in and have considerably lower wages. They are commercial societies that operate on high margins of profit. So they can simply use a chunk of the fat profit they've made in recent period to be able to pass this period without reducing the wages too much. On top of that we also have a lot of money which we put into transfers in recent period.

Just shows how poor they manage the club, sad thing is they won't even attempt to fix it. Good luck to the board taking over 2021 trying to reduce the costs of the squad with Bartos galactico signings and way over the top salaries.

Watch them reduce wages in April just to buy Neymar in July

 

[serghei]

Just shows how poor they manage the club, sad thing is they won't even attempt to fix it. Good luck to the board taking over 2021 trying to reduce the costs of the squad with Bartos galactico signings and way over the top salaries.

Watch them reduce wages in April just to buy Neymar in July

At least coronavirus will probably nuke the Neymar deal in the summer. No way Neymar is coming if the revenue takes a big hit, which it will.

 

[wisconsincule]

At least coronavirus will probably nuke the Neymar deal in the summer. No way Neymar is coming if the revenue takes a big hit, which it will.

Yeah it’s seeming more and more likely that a lot of the top clubs will take a massive hit. Hopefully driving transfer prices way down.

It’s time for some shrewd business from our board.... oh wait.

 

[Luftstalag14]

Yes the board is a bunch of imbeciles when it comes to a lot of stuff, yes our finances are in a poor shape considering how much debt we have etc. and all the nontransparent stuff going on, but even if we had been perfectly managed and our finances had been in great shape, this colossal loss of revenues requires some drastic measures like pay cut (even Bayern, the club has zero debt had a 20% pay cut) and other things.

Think about it, all those games not played means zero match day income; no tourists means no museum visitors and more importantly, nobody visiting the various FCB stores and hence a great hit on merchandising revenue (even online sales are depressed because of either people losing interest in football for the time being or having other priorities to spend their money on); no TV money and prize money which accounts for a huge portion of the total revenue for us and last but not least, potential penalties from sponsors. We are losing a shit load of money even a 70% pay cut is only a drop in the bucket.

Just wanted to give folks some perspectives, this is really bad stuff and no amount of managerial brilliance would have foreseen and prepared a club for a crisis like this.

 

[ThwiX]

70% pay cut is crazy when comparing to how other clubs have handled this. Massive respect to our players, while a big fuck you to all the people who were talking shit about them. Just look at the likes of Tottenham who have decided to still pay the full salary to all their players, while giving the rest of their employees a 20% pay cut. How fucked up isn’t that?

 

[Luftstalag14]

Apparently the 70% pay cut is only saving us between 14m to 16m for each month we are not playing.

FC Barcelona has agreed to an adjustment of 70% for the duration of the state of alarm , although the way in which it rewards athletes means that its forecast is to only reduce the annual cost of sports personnel per month of inactivity by 5% . In absolute terms, it is estimated that the Blaugrana's global savings would be 16 million euros for each month of inactivity , between professional football (14 million) and sections (2 million).

No idea how that was calculated but if true, all the stuff lauding Messi for losing 50m etc. is fake.