Know everything about the financial calamity of La Liga club FC Barcelona who are in desperate need of funds owing to the La Liga salary cap and salary issues
Financial woes at the Camp Nou following the departure of club legend Lionel Messi ahead of the new season. Barcelona lost their most prized asset for free after not being able to register Messi’s new contract with La Liga.
Meanwhile, they are still not able to register their new signings like Memphis Depay, Sergio Aguero, Emerson Royal, and Eric Garcia. The massive wage bill of Barcelona has left them with no money and are on the verge of missing out on their 4 new signings.
Messi’s departure will affect the club in significant loss of revenue generated through shirt sales and sponsorship deals. They need to make €200 million in order to register their new signings which suggests that the actual numbers of debt are way higher than the actual figures presented by the previous board.
Barcelona in financial trouble due to the wage and salary cap imposed by La Liga for 2021-22
Spanish giants were the number 1 team in 2020 in terms of spending the most money as salaries of players and staff exceeding Manchester City by €42million according to the Deloitte Money League. Meanwhile, their debt kept increasing as the cash flow was frozen due to the pandemic.
La Liga’s Financial Fair Play regulation even worsen the blow by placing a wage cap on all the 42 clubs in the top two flights of Spanish football. However, Barcelona were given the highest salary scrap by La Liga almost slashing their budget in half.
#FCBarcelona salary cap was nearly halved from €671m in 2019/20 to €347m in 2020/21 with their €324m reduction being by far the largest in La Liga (around the same as all the other clubs combined). Their limit was the highest, but it has been overtaken by Real Madrid €473m. pic.twitter.com/7ate7hHxeY
— Swiss Ramble (@SwissRamble) July 26, 2021
Financial mismanagement from the previous board has put them into this position where it is just a downwards spiral and the club needs to take immediate actions in order to save them from financial ruin.
What can Barcelona do including sale of players
Barcelona made the first right choice of not extending Messi’s contract because it would’ve meant that the club needed to settle for 50 years with the same television broadcasting company. Long-term problems have forced them to let Messi leave.
Meanwhile, €1.2 billion debt is piling up on the current Barcelona board who are looking to generate money through player sales and free up the exhausting wage bill. Players like Umtiti, Dembele, Pjanic, and Coutinho are taking a big piece of the pie and not performing up to the mark.
Wage reduction and ticket sales will generate some revenue this season as Barcelona are looking at the La Masia to fill the huge gap left by Lionel Messi. European football was handed over a huge blow by the pandemic with no fans in the stadium meant the most important money-generating factor was gone.
The club needs to sell some players quickly in order to generate €200 million as soon as possible if they want to register their new signings with La Liga. Meanwhile, Barcelona are still hopeful about the Super League project that will decrease some of that financial burden.
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