It is no secret that Barcelona is going through tough times financially. The Spanish football club is currently broke, and this is on the back of a decade where the club won six La Liga titles, two Champions League trophies, two FIFA Club World Cups, among other incredible honors.
For most supporters and affiliates of the club, the financial crises the club faces have been inevitable. The impact of the COVID-19 pandemic, which grossly affected the club from revenue generation, was visible from mid last year when the club’s players also agreed to pay cuts of their wages. The players were given a deadline of November 5th in 2020 to either accept the pay cuts or risk a financial meltdown of the club soon.
The club spends 74% of its income on wages and with the effect of the pandemic, this was no longer sustainable. Barcelona players agreed to the wage cuts proposal, but that was still not enough to salvage the club’s worrisome economic situation.
The Camp Nou outfit is in a debt of nearly $1.5billion with approximately half of it required to be repaid by the end of June. Payments to other clubs on several transfer deals are still being owed and the repayments are getting due.
If the club fails to repay its debts, it might result in the collapse of the club as an institution, and this would lead to its reformation as a limited company.
Barcelona was very committed to ensuring the Super League comes to life, a reason could be that competing teams could earn $400 million per year for participating. This would have also helped in managing the financial crises the club faced.
With all this still going on, Barcelona has been trying to transition from its well-experienced winners to young and hungry future stars. This has not been quite easy for them; they have suffered a lot of teething issues under Ronald Koeman. An overview of the squad tells you there is serious reconstruction to be done. The summer is supposed to be major surgery, but the lack of funds has left them to scramble around for players on a free transfer. Luckily, there have been a few free transfers knocking about and they have been able to lay their hands on some.
Eric Garcia was denied the chance to join his former employers in the winter as he had long wanted to return to Barcelona. He had declared his interest in re-joining Barcelona once his contract with Manchester City expired.
The 20-year-old defender in his early days joined the Barcelona Academy in 2008 and left for Manchester City where he spent four seasons featuring at U-19, U-23 level, and for the first team.
His new contract keeps him at Barcelona until the end of the 2025/26 season and his buyout clause is set at 400 million euros.
The Argentine forward who was already out of contract at Man City joined the Catalan club on a free transfer till the end of the 2022/23 season. His buyout clause is set at €100m (£86m). The 32-year-old’s presence has brought a lot of excitement to the supporters because of his attacking ability. While at City, He scored a record 260 goals in 390 appearances in all competitions making him the fourth-highest goalscorer in Premier League history and City’s record goalscorer.
The 27-year-old winger has joined Barcelona on a free transfer after seeing out his contract at Lyon. He and Koeman are reunited after working together for almost two years while the 58-year-old oversaw the Netherlands team. His contract with Barcelona is until the end of the 2022/23 season.
Barcelona has its eyes on other players available on a free transfer as they continue to adopt various options at their disposal to manage their debt crises.
/ 10 months ago
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