Continued....
What is the degree of animosity you have with respect to Real Madrid and PSG?
We have to worry about Barca. What others do is their problem. We have to make sure that no illegalities are made and the market is distorted by the clubs-state and it is very clear which ones are: we have PSG, Manchester City and those who will come. This makes it more difficult to manage a club like ours that is owned by members.
And how is this solved?
That the rules are complied with, that there is a harmonisation in the financial fair-play, that there are no grace periods with some countries while here we cannot have enough fair play to carry out operations even if we generate income. They say to me, "You have the inheritance you have and it's not the fault of all this." Well, inheritance is the fault of those who managed the club, but even so, if more flexible measures are taken in other countries they should also be adopted here. And that's not the case. The solution is to make the league much more flexible on fair-play issues and that these clubs do not have the privileges they have on the part of UEFA. They allow them to do things that are not admissible and that others do not.
What is the Bar?a-UEFA relationship at the moment?
It's cold. We think the Champions League is improved in terms of resources for clubs and making it more attractive. The idea that we have the clubs that defend a Super League is to sit down and find solutions to all this. And real solutions, don't keep disguising the story. Because the clubs, who are the ones investing in this show, we have to govern. There is a governance problem and I think we can agree with UEFA. Clubs need to govern the high competition. UEFA also has something to say, of course. And we also have to talk about the distribution of money. It's a business that costs a lot of money to keep it at the elite level and if that doesn't happen, there are clubs that have a tradition that we're getting very hurt.
Are you worried about a possible sanction, along with Juventus and Real Madrid?
Honestly, I don't think they're in a position to make any penalties. The clubs are defending the principles of the European Union: free competition and Europeanism. We want football in Europe to be sustainable and there are no external agents, from countries with Russian or Arab oligarchs, to distort this market. This is being defended and I don't think UEFA is in a position to sanction clubs that are defending these principles. We have received registration for the next Champions League. They don't want to attack free competition. And if they do, they will receive a boomerang effect because they will eventually prevail in the principles of the EU.
Did he meet Aleksander Ceferin in Turin?
yes, but it wasn't a place to talk about these issues. The deal is correct and we made some comments, but they were not focused on analysing this conflict. I think they know that what we're raising is logical. They want to maintain a power they should share. When they talk about dialogue, we want to establish it. When a part does not want to talk and closes in band, the dialogue does not occur.
The economy is delicate. Are they going to sell assets from the workforce? Frenkie de Jong is a recurring name.
Now the market is starting to move and we also have players who have offers. They have offers because they are high quality players and we have to leave in some way that everything flows a little bit and be very attentive to what fair play we have to make according to what decisions. Right now, everything is open. The truth is that there are players whom we have renewed and who have a present and future, and these obviously we want them to continue in our ranks. And others that also have a high quality, but have a market, also have proposals, and in this case it will depend a lot on the issue of fair play.
In the latter group he describes, Frenkie de Jong fits precisely.
I'm talking about first-team players from Barcelona and there are a lot of them who have great quality. Frenkie has great quality; he knows our system and, yes, he is a coveted player in the market and proposals have come to us, but we think he must continue at Bar?a.
I used to talk about drastic decisions. Can there be any surprises in the form of an exit?
When I talk about drastic decisions, I mean the issue of fair play. We have a very high salary mass that still doesn't allow us to have fair play. And here we will have to make a decision. Maybe we're going to have to throw in the right and we're going to have to reduce the wage mass in a way that's not what we'd like, even if it's taking some risks. We have a still very high salary cap, inherited from those who managed the club before, bad by the way, and that is very difficult to redirect in a peaceful way. Perhaps we have to go to a more drastic and more conflictive way in order to have financial fair play, because what we do not want is that a team that we think must be strengthened to be more competitive and be able to aspire to everything that Bar?a must aspire to because it is limited by the issue of financial fair play and by a sporting salary mass that we have at 40% higher than the rest. of the teams and that, in addition to being a disastrous legacy that has come to us due to the mismanagement of the previous managers of the club, we find that we cannot reinforce. The drastic measures, which I wish I didn't have to take, would be better taken.
Without fair play, they can't sign. It's a fish that bites its tail.
The first season we did what we could and now the second season is coming, and what we can't do is be with that anxiety that has us blocked. Decisions will have to be made. And if we have to go to court, we're going to go, because there comes a time when we're locked up. Both the regulations and the inheritance we have blocked us. And we have to make some decisions. Hopefully it's not drastic.
That inheritance, didn't they expect that would be the case before he joined the club?
Do you know what's going on? That until you go in, you don't have confirmation of how all this is. We expected it not to be that bad. There has been a deferral of wages, but we are not talking about salaries that can be settled, they are very high wages. These are salaries that we no longer do at the club and I don't think they are done even in the football market. For confidentiality, out of respect for privacy it is not the time to go by saying names, but they are very high salaries that are not paid in the market and that unfortunately, due to a erroneous decision of the previous managers, we have found it now and there are still two years left. We're going to have to cut that somehow. And it is usually through consensus, through the agreement, but I also understand that the other parties that may exist in this conflict say that they have a signed contract that must be fulfilled.
Should "levers," as these operations are being called to deposit money, be closed by June 30?
We could have activated some of them. But I tell him: we have to find the best solution in Bar?a's interest. And none of these options is perfect. We are looking for the one that eliminates our own negative funds, that at the same time allows us to make a profit this season and that also gives us fair play. If we're going to have to do it in phases, maybe we can't do it all before June 30th. We're working on it.
One of the transactions that has been talked about lately is the option to sell 30% of the audiovisual rights to Goldman Sachs.
That's not true. Look, there are several options, we can call it levers. We have the option to sell television rights. We would like them to be at most 10% of television rights, as much capital as possible. If we make some quick numbers we see that we pay 165 million fixed TV rights for the league, then let's say that for UEFA and bonus we reach 260. There are 165 million people who guarantee tv rights. 10% of these 165, are 16.5 million, and there are options such as CVC that is 50 years old, other options 20 years and others 10 years. What's wrong with us here? That all these amounts that they pay us, they are taxed, therefore we can already reduce by 25% the money that will be invested by whoever buys the TV rights. From there, depending on the amount, we liquidate negative equity, in whole or in part, and from having liquidated all this, 10% of the television rights have been released; the rest, 90%, are guaranteed goldman sachs' credit with Bar?a. Therefore it would be a credit that should be repaid in advance and this also comes at a cost. There are several factors that we must take into account, and it is not so simple. Liquidating a loan like that of Goldman Sachs, which we are talking about the order of 595 million euros, also has an early settlement penalty. This can be negotiated, OK, but by liquidating this credit, we would have very little left.
And what are your options?
We have options for important figures but when it comes to truth we also have to value something else. Whoever pays you $1 billion for tv rights, wants 100% of the TV rights and maybe we could have a ten-year option. But this option if you make numbers you come to the conclusion that it hurts your profit and loss account in the coming years. If it is ten years, of the next ten years, because they are -165 million euros that you will pay each year because they are 100% of the tv rights fixed. The increase in TV rights should also be assessed in the coming years because if Netflix, Amazon, Disney... a whole series of companies this will cause a significant increase. One of the negotiations that is being done is to try to cap the increase so that it is not so negative for us, that at least the increase in these rights is left by the club. Another formula that is obviously less money, but there is less percentage of TV rights left, 22%, and they do so in 20 years. In this operation, all the aspects that we have to consider – liquidating negative equity, knowing what cash we have left and seeing how it impacts the profit and loss account for the coming years – may still be better than what we want as a 100% operation of television rights.
And finally, the CVC option.
Then there is another that is CVC, with 270 million euros, for 10% of the television rights to 50 years. It's many years and here we should try to fine-tune this operation so that it gets more interesting at the club. To capture the increase in television rights, that do not force us to make this sale of 10% of the television rights block us the remaining 90% of rights. And after he gives us as much fair play as possible. The factors we are taking into account at the moment is reducing our own negative fund, giving us fair play, that there is cash that can allow the club to make the investments it has to make and that impacts as much negatively as possible in the profit and loss account for the coming years.
But with CVC they don't get away with it.
CVC is an operation that we have been improving. But in terms of fair play, our surprise is that it turns out very little. We have to put in the balance if it comes to us to sell 10% of the TV rights for 270 million and 50 years. If I have said before that we pay 165, then we only have to take 16.5, which would be this 10%, and multiply it for 50 years... Many more millions (825) come out. The operation, for CVC and LaLiga, is magnificent, but Bar?a, if it does not give it enough fair play, does not come to mind either.
Let's talk about the feminine now. How did you see the team in Turin?
It was a shame. But I think we've played a very decent role this season. Very good. What I would like is for the Spanish league to be more competitive, because I think the consequence that is not very it led us to make a final in which, although it is true that we exhibited a lot of technical quality, perhaps we lacked the strength that Olympique de Lyon showed. How is this acquired? Enhancing the Spanish league. In Europe we have been able to compete and we have gone with our heads high and right, and we can proudly say that they are giving the club a lot of joy and that they are a very important part of the club, increasingly. The proof is the success he had in the matches against Madrid and Wolfsburg at the Camp Nou. We have to work to improve, from humility, and that this causes us an inner strength to be better, that we do not believe that we have done everything. Last year we won the Champions League; this year it could not be and I encourage them because they are the pride of the club, the city and the country and that has a lot of merit. This burden they have of being a social reference is also good and also helps them to be better and seek excellence, but we still lack. I am sure, as they say, that next year we will play again in the Champions League final and this time we will win it. It's been a great season. We've won the league and now we're hoping to win the Queen's Cup.
Do you have growth plans?
We are evaluating, in one of the buildings there, to make the female farmhouse, now it is mixed. We have a firm commitment to women's Bar?a. Not only to give it the corresponding projection in the media field, but also in the field of training. We also want to have a farmhouse or structure of young players who have the possibility of reaching the first team and that is why we are working with trainers, trainers and professionals that allow us to be a club that generators players. Let's start being.
In basketball there has been the disillusionment of the 'final four'.
There had been talk of a pay cut with Mirotic.
We have to thank Mirotic precisely for what he brings to the team, because he did a game. The pity is we couldn't win. Obviously we're disappointed, because it didn't go the way we wanted. The final has been reached, we were third, we won the Olympiacos and now to see in the league how the play-offs are going. Here they have to show that they had the quality and ability to be European champions and it couldn't be, but at least now we have to concentrate on the league and then we will assess it all. I want to see how the season ends.
It is expected that the course will end.
It is a section that is the second in importance. In terms of budget and monitoring within the club and we want results. The final four is great to get there but it didn't go the way we wanted. We have to trust them and trust that we will win the league.
And in the rest of the sections, what assessment does it make of the season as a whole?
In handball the league has been won, the cup has been won and now we will see if in the final four of Cologne we get away with it. It is not easy, because we are the four best teams in Europe, by a lot. A very good season has been made in handball, also in futsal; we're in the playoffs now. In hockey, beyond this unofficial European Cup that was played, the rest of us have won it, and we plan to make new additions that will also help the team a lot.