Skip to main content

The Economic Situation at FC Barcelona

It is no secret that Barcelona are in a financial crisis and must make major cutbacks to their first-team squad ahead of the new season.
Barcelona are unable to register the new contract of star player Lionel Messi nor any of their four summer arrivals as they are operating far beyond their wage budget

The Catalan giants were forced into making drastic savings last year when Luis Suarez, Arturo Vidal, Arthur Melo and Ivan Rakitic were all moved on, along with wage reductions across the squad.

This summer will be even more complicated with yet further slashes to the club’s wage budget and players no longer will to continue to accept wage reductions.

Full-back Junior Firpo is joined English Premier League side Leeds United in a deal that would save Barca around $11 million per season, according to Goal's report. Portuguese midfielder Francisco Trincao has also been loaned to Wolverhampton Wanderers with an option to buy.

American forward Konrad De La Fuente has been sold to Marseille and Jean Claire-Todibo has been shipped to Nice, saving the club circa $12 million annually. 

At this point, we already know that Barca need to reduce their salary bill by around €200million to register their four new signings, as well as Lionel Messi‘s new contract.

But according to Swiss Ramble, their current wages were the highest in Europe at last count, which was last year, outspending second place Manchester City by €42million per year, a trait that does not board well in the year when La Liga cut the Blaugrana’s salary cap by €187million.

In January, it was reported by Spanish newspaper El Mundo that Barcelona was on the "verge of bankruptcy." In the 2020 financial year, Barcelona made a loss of around $117 million and club financials also showed it to have a total of $1.4 billion in debt. 

The wage bill is the club's biggest problem. LaLiga has its own Financial Fair Play rules limiting what each club spends on salaries due to which barca can't even register the players that they singed this year. The estimated wages for Barca’s four new signings are around €30m (£26m/$35.5m), plus whatever salary Messi agrees to. The Argentine is expected to take a significant wage cut, perhaps with a promise for a future, well-paid, role at the club. 

According to Catalan radio RAC 1, Barcelona need to wipe £156million (€187m) off their existing wage bill. Their limit was £296m (€347m) last year and now it’s £136m (€160m).

The difficulty comes in selling players when every other club in Europe knows Barcelona’s precarious financial state and their desperation to sell. The greatest difficulty, though, will come in shifting the players that have proved to be Barcelona’s biggest mistakes in the transfer market in recent years: club-record signing Coutinho, perennially injured Dembele and the disappointing Griezmann. Miralem Pjanic is another player in whom coach Ronald Koeman has little interest in and he too has been offered, and turned down, release from his contract worth €16m (£14m/$19m) a year.
Other players, including Martin Braithwaite, Neto, Clement Lenglet, Sergi Roberto and Riqui Puig may also be shipped out, either sold or on loan, but without losing the big earners, it does not do a great deal of good. Quite who would be left to ensure Barca can remain fighting at the highest level, though, is up for dispute.

The blame lies at the feet of previous president Josep Bartomeu who handled the club’s finances so poorly.

Comments

Popular posts from this blog

SUMMER TRANSFER WINDOW 2021: Grading signings from Europe

A dizzying transfer window that has seen Lionel Messi and Cristiano Ronaldo change clubs went into its final hours on Tuesday with the issue of whether Kylian Mbappe could make a blockbuster move from Paris Saint-Germain to Real Madrid still unresolved. transfer window delivered surprises and snubs, witth some transfers potentially transforming one side from a likely also-ran into probable title challengers. After hundreds of millions spent with the August transfer deadline now past, we look at how Clubs has performed in the market. Manchester United: Rating: A  Manchester United's business for the summer of 2021 is completed, following a window where significant investment was made in Ole Gunnar Solskjaer's squad. Cristiano Ronaldo's return to Old Trafford is now fiercely-anticipated following his homecoming from Juventus. Two of United's marquee summer additions have already made their debuts, with Jadon Sancho and Raphael Varane already working their way ...

REAL MADRID: THE KINGS OF EUROPE

Real Madrid won 3 three consecutive UCL titles during 2016–2018 because they had a great squad , a great man manager and p one of the greatest football player of all time if not the greatest in Cristiano Ronaldo.  Zidane's tenure started in January 2016 and took over a struggling side and managed to conquer the Camp Nou in his first visit. This was a vital momemt in that campaign and restored faith in the team and fans. They had some impressive performances like winning the El Clasico 2–1 at the Camp Nou and breaking Barca's 38 match unbeaten run. At the end of the end season they were the champions of Europe and narrowly lost the league to FC Barcelona. Now the question that arises is "What makes Real Madrid so good in the Champions league?  Real Madrid consider the UCL their competition simply because of how successful they've been. It's a trophy that is coveted by the team and fans. Madrid are a different beast in Europe partly due to this history and al...

Why has Italy won the World Cup the most amongst European nations?

Let me tell you , Germany now has the same number of world cups as that of Italy. But yes, When it comes to major achievements in the international arenas, no nation has won as much as the Mediterranean country. So what is the secret behind this success? Madonna once famously flaunted a slogan T-Shirt with the caption: "Italians do it better". And while the Princess of Pop was suggestively alluding to another physically popular pastime, she could just as well have been referring to soccer. Tactical Supremacy On a purely footballing level, there is little doubt that Italy’s tactical supremacy has been a key weapon.Whether it be Helenio Herrera’s Catenaccio, Sacchi’s total pressing or Luciano Spalletti’s ‘False 9’, the peninsula has long been at the forefront of strategic innovation. There is a unique obsession with tactics in Italy. Its importance is drilled into children from a young age and Jose Mourinho once amusingly remarked that “everyone in Italy thinks they...