- The dire financial situation in which Barcelona finds itself has been revealed
- The club revealed they lost over £409m in the 2020-21 campaign
- LaLiga Giants’ spending rose 19 percent from £812million to £1billion . Done
The dire financial situation Barcelona found itself in has been revealed by the club with a loss of €481million last season.
It’s no secret that the Catalan giants are struggling majorly amid the coronavirus pandemic, but the full extent of their problems has been revealed.
The club revealed that they lost more than £409m in the 2020-21 campaign after falling revenues and rising expenses.
Barcelona lost £409million last season, with revenues down 26 percent
Barcelona president Joan Laporta (R) also saw his club as of June following a loan of £384 million
The LaLiga organization’s revenue fell by 26 per cent with just £537m compared to £537m before fans pulled out of games due to stadiums unable to open due to the Covid crisis.
Barcelona is dependent on football tourism, with stadium visits a big money-spinner and revenues falling after being severely restricted at the Nou Camp.
While the club’s spending rose 19 percent from £812million to £1billion, despite saving through players agreeing to a pay cut.
As a result the club posted debts of €384m as of June, while debt has already exceeded £1.1bn in recent seasons.
Barcelona’s salary limit was slashed last week from £246m to £85m. The Catalan side’s salary limit in the 2018–19 season was €671m (£580m), which was reduced to €382.7m (£331m), a drop of €288.3m (£249m).
But another squeeze on Barcelona’s finances, exacerbated by the pandemic but due to unstable pay to turnover ratios, that figure has now fallen to £85m this season.
Under increasing pressure, conditions are bad on the pitch along with manager Ronald Koeman.
Club president Joan Laporta explained to reporters earlier in the summer that with six-time Ballon d’Or winner Lionel Messi on the books, Barca’s salary bill would amount to 110 percent of their income.
Even as Messi – Barca could not afford to catch their greatest player of all time – moved to the Parc des Princes, the salary bill remained shaky at 95 per cent.
Antoine Griezmann was sent back to Atletico Madrid, Messi left for PSG and Miralem Pjanic was loaned to Besiktas.
Barcelona’s financial turmoil was exposed during the summer when the arrivals of Memphis Depay, Emerson, Sergio Aguero and Eric García were overshadowed by the fact that the club was unable to register them without exceeding their salary limit.
Barcelona were not able to sign their new signings with LaLiga until the big earners were transferred.
Ronald Koeman’s side are also struggling on the pitch with the Dutchman under pressure, after only three league wins in their opening seven matches and a 3-0 loss by Benfica in the Champions League.