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FC Barcelona launched its newest monetary report on Monday, and the numbers paint a troubling image for the soccer big, with newspapers in Spain even speculating it’s near chapter.
On Monday night, quickly after the monetary report was revealed, Spain’s second largest national newspaper, El Mundo, claimed that the club is on the “verge of bankruptcy.”
El Mundo’s declare was based mostly on the membership’s monetary report for the previous 12 months, which was made public Monday morning. Within the report, the membership acknowledged that its steadiness sheet at the moment reveals a “adverse working capital” of over 604 million euros ($729 million).
It added that this determine “could forged doubt on the applying of the going concern precept.”
Companies function underneath the going concern precept when they’re secure and anticipate to proceed in enterprise for the foreseeable future. Any doubt over that precept suggests monetary points are current.
Within the 2020 monetary 12 months, Barcelona stated it made a lack of round $117 million, although it stated that with out the impression of the coronavirus pandemic, it might have made a small revenue of round $2 million.
Membership financials additionally confirmed that Barcelona has a complete of $1.4 billion in debt. $322 million of that debt have to be paid to banks by the top of June.
An additional $562 million price of debt repayments are additionally due within the quick time period, together with $237 million owed to different groups for current transfers.
Barcelona nonetheless owes $35 million to Liverpool for the signing of Philippe Coutinho again in 2018, whereas Ajax is due $19 million for the signing of Frenkie de Jong in 2019.
It additionally owes Bordeaux, Gremio, and Bayern Munich for the respective signings of Malcom, Arthur, and Arturo Vidal, regardless of all these gamers having now moved on to new groups.
Barcelona’s financial situation has also been significantly worsened by the global COVID-19 pandemic, with the membership reporting a a 14% fall in annual income final season.
Revenues fell to $1.03 billion from $1.2 billion in 2019. This was considerably under the membership’s pre-pandemic income forecast of $1.26 billion.
Round 74% of that income was spent on participant’s salaries, the membership stated, up from 68% in 2019.
“Gamers will not obtain their month-to-month cost for January. It has been postponed in the identical means that others have been postponed, comparable to title-winning bonuses,” Tusquets stated.
January’s missed funds are anticipated to be paid in February, however the membership may additionally incur a big monetary penalty for exceeding La Liga guidelines which state golf equipment ought to spend not more than 70% of revenue on participant salaries, experiences El Mundo.
Gamers late final 12 months collectively agreed to a wage reduce to assist the membership financially throughout the pandemic. At the time the cut was said to be worth $147 million.
Spain’s media fears for Barcelona’s future
REUTERS/Albert Gea TPX IMAGES OF THE DAY
MARCA says Josep Maria Bartomeu, the membership’s former president who resigned in October, is partly responsible for the scenario and Barcelona must take speedy motion to reverse his errors.
“Bartomeu has loads to reply for, with an irresponsible monetary plan all through his presidency, delaying so many funds till future dates,” it stated.
The newspaper added that Barcelona is in “a really precarious scenario.” It additionally stated, nevertheless, that it’s “a great distance from going through any form of existential disaster.”
It famous that the membership has a lot of worthwhile property in gamers like Antoine Griezmann and Ousmane Dembele, every of whom may seemingly be bought for greater than $120 million.
El Mundo, in addition to warning of risk of chapter for Barcelona, says the membership is in “a fully horrible scenario.”
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