Barcelona will be fine or not depending on how they spend the money from now on. From what I see there is a lot of misinformation on the matter.
I hope you sign Dembele, I don't want to see him one more game at Barcelona
Barcelona: Charged with corruption .... again!
- Thread starter The Boy
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Barcelona will be fine or not depending on how they spend the money from now on. From what I see there is a lot of misinformation on the matter.
I hope you sign Dembele, I don't want to see him one more game at Barcelona
Barca were actively trying to convince him to stay this week from what I hear. Now that you have a bit of cash to spend, it wouldn't surprise me if Barca and Dembele magically come to an agreement.
Barcelona's revenue will not fall by 25%.
The sale of television rights is 5% of the budget, 5% now, maybe in 10 years only represents 2-3%.
And the agreement with BLM has a buyback option.
Well, Barcelona would start badly with the money that will come in soon if they do that.
Not really, it’s going to facilitate the revamp of the nou camp which will generate a heck of a lot more money, just look at the deal Real Madrid just struck for hosting events in their revamped stadium.
No way in this economy that Barsa revamps the Camp Nou as foreseen. The upcoming economic crisis is going to be brutal. Between the war in Ukraine and the Covid bill, worldwide inflation and price of materials like steel. And Spain is not particularly robust as European countries go.
Madrid that is more than halfway on their project has had to scale down their stadium project according to some.
Only way I see Barsa pulling the stadium off is with it selling a big chunk of the club to investors. I can already see the seeds of that with the so called ‘levers’
What is BLM? The only BLM I know is black lives matter and I'm pretty sure Barca are not selling 49% of that with a buy back option!
It's 5 %, not 25%. They can sell up to 25 % of national tv rights. That's about 5% of the whole revenue. It's a forced and bad decision, but far from biting. It will be even less than 5%, if sales increase.
barca license & merchandise
Thanks, that makes more sense!
How are you getting the math to work out there? In the last financial results their domestic TV revenue was €165m and turnover was €630m. If national TV rights were 5% of total revenue they'd only be worth €31.5m, which is obviously nowhere close to the truth.
It's not my math, but that of the barca board. They told yesterday the maximum amount they are willing to sell (25% of national tv rights) equals 5% of total income.
25% of €165m is +- €40m. If you ignore the covid losses and add the new spotify deal, barca's total revenue is expected somewhere around €700-800m as it was pre covid. €40m of €800m is precisely 5%.
Ah, now I understand. I thought you were referring to broadcasting revenues as a whole being 5%, not the share they were selling. Still €40m over 25 years is €1bn of revenue you'd be selling off for €500m. Seems a bit drastic.
Surely in a few years when transfer prices/cost of everything has risen this will prove to be the end of them?
the stupidest part of it is they could easily spend low for a few years and still scrape top 4 and really build themselves up again but their obsession with Madrid just won’t allow it, Madrid winning the CL just now was the worst thing that could have happened to them
the stupidest part of it is they could easily spend low for a few years and still scrape top 4 and really build themselves up again but their obsession with Madrid just won’t allow it, Madrid winning the CL just now was the worst thing that could have happened to them
Barcelona will start the works of the stadium soon and it will be with a loan from Goldman Sachs.
What is Barca's debt? What are they planning to do with their 500-700m? Do they have to pay off the debt or are they going to invest it into the club?
Why do they have so much debt? For ManUtd we all know why, for Barca I don't get the reason. Were they spending so much money outside their budget?
The obsession of some posters with Barca truly is strong.
Also, this thread is always a good show of remarkable amateurish skills in macroeconomics and futurology.
Also, this thread is always a good show of remarkable amateurish skills in macroeconomics and futurology.
Yes, but not with the same scope at the price quoted. Unless Catalonia exists outside our current macroeconomic reality. Wait and see for the news on this once they go into action.
Just coming into this conversation now, so their income will essentially drop by €40m in future years?
Barca solving their problems
In the section on television rights. For BLM I don't know how much it will be.
Isn't this similar to them refinancing their loan? They are in debt and have to repay it.. if they use this to pay off their debt , it's hardly a bad deal.
The fact that they are in the situation is bad enough.. not sure how bad this recent development is.
The fact that they are in the situation is bad enough.. not sure how bad this recent development is.
Inflation, stagflation, Covid-induced supply chain disruptions in China, Russia-Ukraine war, Oil & Gas prices, overheated housing markets ... take your pick.
No, but they were spending to their limits and needed big sales every year to balance theie debt. COVID broke them
They are not bad players.
Is the merchandasing department of the club.
Most
Mostly caused by the previous president because every time a player came to him asking for higher wages he said "yeah, why not, we have a billon income". Then covid happened, the income dropped by 400 million and then salaries alone were higher than the club's income. When Laporta took over, salaries were 110% of the club's income. 70% is supposedly the healthy limit, but ideally it should be around 50% only.
What's the price tag on the buyback option?
Interesting article in The Athletic that sums up their options:
Barcelona’s €700m ‘economic levers’ and what it might mean for Lewandowski and De Jong
Its an issue of choosing the lesser of any bad options out there. The current options have long-term implications by kicking the can down the road or they are royally fecked in the short term -- terminal even.
What they aren't willing to accept is to swallow the bitter medicine/pill now by insisting on fixing the problems on one hand and then insisting on buying or bringing in more players on the other.
Really threading the financial needle.
If it was me, being a lot more financially prudent and fiscially conservative, I would sell Frenkie. The rest of the rescue instruments are like a house of cards. One folds and the entire thing could collapse. Then they are back in square one again.
Cut costs first when there is so much fat to eliminate esp with the looming La Liga ruling on losses kicking in by July. Then it gives them more options and margins to manoeuvre -- instead of lumping themselves this summer with 4-5 new players and their wages. I understand they need it to increase the fans' excitement and all the fincnaical implications that comes with that. But its setting things up for the near future on such a precarious platform.
Barcelona’s €700m ‘economic levers’ and what it might mean for Lewandowski and De Jong
Its an issue of choosing the lesser of any bad options out there. The current options have long-term implications by kicking the can down the road or they are royally fecked in the short term -- terminal even.
What they aren't willing to accept is to swallow the bitter medicine/pill now by insisting on fixing the problems on one hand and then insisting on buying or bringing in more players on the other.
Really threading the financial needle.
If it was me, being a lot more financially prudent and fiscially conservative, I would sell Frenkie. The rest of the rescue instruments are like a house of cards. One folds and the entire thing could collapse. Then they are back in square one again.
Cut costs first when there is so much fat to eliminate esp with the looming La Liga ruling on losses kicking in by July. Then it gives them more options and margins to manoeuvre -- instead of lumping themselves this summer with 4-5 new players and their wages. I understand they need it to increase the fans' excitement and all the fincnaical implications that comes with that. But its setting things up for the near future on such a precarious platform.
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Well it'll be a bit lower than €40m, since the total broadcasting income of €165m consists of national + international rights and as I understood it, barca selling only the national rights. Also it's not even clear how much percentage the board will sell. They are allowed up to 25%, but what they'll do is another matter.
But still it's of course a bad decision to give away 25 years of income for half it's value. Laporta made it clear. There is only one other choice and it's even worse: to do nothing. With nothing, you get nothing and barca will drop out of the big clubs round. That means less fans, less money, no means to pay debs, lights out.
Thanks to Bartomeu, barca is forced to do this deal to stay relevant and competitive in the next years. And as I said, 5% is no small amount to give away, but far from crippling. Especially, if sales increase, the 5% will become even less.
Barca wants also to find a strategic partner with a big network to increase sales in merchandising and tv. If they find someone with a good knowledge and network, both will profit. There is still a lot of room left to improve on that front, since PL getting double the tv money than LaLiga, while LaLiga won the most international trophies in the last 10 years.
You still can fix current problems without stopping transfers. The problem is not the number of players, but Bartomeus contracts. Laporta and his board already set a new wage system which will reduce all wages to a healthy €400m, when Barto's contracts run out. Every player who signs a new contract with Laporta's board is within the new limit. Look at Araujo for example. He accepted the new limit at barca. United offered him nearly double and Laporta didn't match the offer like Barto would have done. Take it or leave it and Araujo took it thankfully. That's also a big reason they want to sell FdJ, because he exceeds the limit by far with his 19m gross.
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JLaporta affirms that "we have considered exploiting it ourselves. We had a very well done and validated five-year business plan, but we had to inject significant capital. The key is that there are buyback agreements, we have the majority and we participate in the management."
There are no official numbers yet.
Barcelona will make some more money with Spotify.
The question is not to generate more money, it is to lower the wage bill.
And so it will be, of the €560M that was indicated to be this year, more than 100M correspond to deferred salaries and I think Messi's loyalty bonus is also included, I read it was about €30M.
Those are expenses you won't have next season.
That is the question, Barcelona if it wants to stay to FDJ will have to stop signing any player. But I mean they are not obligated, they will simply decide.
The question is about making more money, if you ever want to have the revenues you've had before, otherwise your robbing Peter to pay Paul.
You won't have those expenses, but you also won't have the revenues either.
A bit off topic, but does this mean that Atletico could be feeling the pinch soon as well?
Atlético de Madrid has always had a very high debt, the effects of the pandemic corrected it with a significant capital increase.
Already last year they had to loan Saul at the last minute to register Griezzman.
They will have to be very careful with money these coming years.
Interesting, thanks for the info.
What's going on with Barcelona now?
I thought selling Messi was going to cure all of their financial woes because the Best Player in their History was overpaid and a drain on the club's finances? /s
I thought selling Messi was going to cure all of their financial woes because the Best Player in their History was overpaid and a drain on the club's finances? /s