Barcelona suffer €481m loss for last season
The dire financial position Barcelona finds itself in has been revealed with the club recording a €481 million loss for last season.
It’s no secret that the Catalan giants have been majorly struggling amid the coronavirus pandemic but the full extent of their problems has been disclosed.
The club revealed that they lost more than £409m in the 2020-21 campaign after revenue decreased and expenses increased.
The club’s revenue dropped by 26% with just €631m compared to €855 million the season before as fans were shut out from games and unable to go to the stadium amidst the Covid crisis.
Barcelona is reliant on football tourism, with stadium tours a big money-spinner and revenue has subsequently decimated at the Nou Camp with that severely restricted while the club’s expenses rose by 19% from €955m to €1.14billion despite making savings through players agreeing to take pay cuts.
As a result of this, the club posted €451m worth of debt by June while debts in recent seasons are believed to have already totalled more than £1.1bn.
Barcelona’s salary cap limit was slashed just last week by £246m to £85m. In the 2018-19 season the Catalan side had a salary cap of €671m (£580m), which was slashed to €382.7m (£331m), a fall of €288.3m (£249m).
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But a further squeeze on Barcelona’s finances, exacerbated by the pandemic but due to unsustainable wage to turnover ratios, has seen that figure now fall to the £85m they have this season.
Club president Joan Laporta explained earlier in the summer to reporters that Barca’s wage bill with six-time Ballon d’Or winner Lionel Messi on the books would equal 110 per cent of their income.
Even when the club couldn’t afford the services of their most decorated player, Lionel Messi, the salary bill still remained at an untenable 95%.
Barcelona’s financial turmoil was exposed during the summer when arrivals Memphis Depay, Emerson Royale, Sergio Aguero and Eric Garcia were overshadowed by the fact the club were unable to register them without exceeding their salary cap until big earners were moved on to aid the club in registering their new signings with LaLiga.
Ronald Koeman’s side is struggling on the pitch with the Dutchman under increasing pressure after just three league wins from their opening seven matches and a 3-0 thrashing by Benfica in the Champions League.
