Club post includes overview of payments required for player purchases as well as the impact of the coronavirus pandemic
Barcelona have released the club’s annual financial report, revealing considerable debt resulting from the coronavirus pandemic as well as the club’s big money transfers in recent seasons.
In the statement, Barcelona revealed debt of up to € 1.2bn (£ 1.1bn / $ 1.5bn), as well as short-term debt of around € 730m. (£ 648million / $ 886million).
The club’s biggest expense item is its payroll, an area of expense that accounts for 74% of the club’s income. This is a situation which, according to sources consulted by Goal, is quite worrying within the club, which has led to the negotiations to postpone wages since the start of the pandemic.
Barca also owe a total of 126million euros (£ 112million / $ 153million) to other clubs, resulting from several transfer deals the club have entered into in recent years.
The club still owe Liverpool € 29million (£ 26million / $ 35million) for the signing of Philippe Coutinho, € 16million (£ 14million / $ 19million) to the Ajax for Frenkie de Jong and nearly € 10million (£ 9million / $ 12million) at Bordeaux for Malcom, each demanding payments by June 30.
In addition, payments are due stemming from Arthur’s signing deals, which requires the payment of € 21million (£ 18million / $ 25million) to Gremio, and Arturo Vidal, who sees nearly 11 million euros (£ 10million / $ 13million) owed to Bayern. . Vidal and Arthur, like Malcom, are no longer at the club.
Helping offset several transfers Barca still owe money to, including Zenit’s move for Malcom, Getafe’s signing of Marc Cucurella and Roma’s deal for Carles Perez, that number totaling € 46million ( £ 41million / $ 56million).
Another transfer related payment is owed to Atletico Madrid, resulting from the Antoine Griezmann deal.
As part of the deal, Barca reached a deal to pay Atleti € 10million for what is listed as “preferential rights” on its balance sheet, hinting at a deal that would allow the Catalan club to ‘have the right to match offers from Atletico Madrid. players.
Barcelona ended the club’s 2019-20 campaign with a net debt of € 488million (£ 434million / $ 593million), and the club have negotiated a delay in those payments with their creditors, stressing the impact that the coronavirus pandemic has had on the club’s finances
The club hope to postpone those payments until at least June 30 of this year. Some creditors have accepted this postponement, while the club is still in negotiations with several others on their payment schedule.
Barca hoped they could count on the return of fans this season, with ticket sales expected to be a big part of the club’s financial rebound.
The return of the fans was set to bring the club € 56million (£ 50million / $ 68million) this campaign, with the club expecting a 25% capacity in February and 50% from May.
However, with no date in sight for supporters to return to Camp Nou, it looks like this plan will not come to fruition, depriving the club of an important potential source of income.