Typicall answer that brainwashing media and the banks want you to have.
If you are generating debt that in itself means you are spending more than you make. Then you have interests which mean you are digging yourself even more. Next... yes, you can have high income that can service the debt but taking it as something you can count on indefinitely is naive. You yourself mentioned economy. And guess what. It can go down the tubes, as opposed to your debt, which won't go away anywhere.
Also, taking a mortgage as an example? Seriously? With the housing market crash? You are investing in something which is a liability and not an asset.
Taking loans and going into debt is never a good thing unless you are investing in something that will generate profit but then you are just rolling a dice and gambling with someone elses money.
What has anything what I wrote to do with brainwashing media?
I am just telling you that the debt FCB and RM have is not necessarily bad debt in the sense of the word. If you actually take a look at both clubs balance sheets you would see this.
The fundamental is whether the debt is too high or not (balance sheet), how well debts are covered by items such as income and cash-flow, overall strength (or weakness) of each club’s balance sheet, i.e. also at assets, not just liabilities.
The amount of debt mentioned by the media was
total liabilities not bank debt.
This includes what might be described as operational debt, such as: (a) trade creditors (payables) for amounts outstanding on bills for products or services received, e.g. rent, electricity; (b) money owed to staff, e.g. wages earned by staff paid at the end of the month, bonus payments; (c) other accrued expenses (accruals), which are the same as payables except no invoice has yet been received; (d) provisions, which are an estimate of probable future losses, e.g. legal claims; (e) and, most bizarrely, deferred income for payments received for services not yet provided, e.g. season ticket revenue for matches to be played in the future.
About the income part:
Both FCB's and RM's revenues are growing each year and there is nothing that indicates that it will not happen again next season. Yes, nothing is 100 percent sure but I think you are underestimating both FCB's and RM's ability to deal with such a situation.
Also, both clubs have huge assests so in a worst case scenario they would not be as fucked as other clubs.
FCB and RM are constantly investing as clubs every single season and are generating revenue. I seriously doubt, as I said previously, that they face financial difficulties in the near future, UNLESS of course Spain's economy will worsen and become a even bigger liability.
