Barcelona: Charged with corruption .... again!

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

No one with knowledge actually said Messis departure would cure all problems, it was just a start. With Messi, barca's wages were in total around €750m. The healthy number after Covid losses is €400m. That's the goal to reach next summer. Currently after Messi and some other departures, as well as new contracts with the new limit, the total wage is around €540m. So Laporta's board has still to do a lot of work in the next season to reach the goal. It would be incredible, if they can lower the total wage by nearly half in just 2 years.
 
No one with knowledge actually said Messis departure would cure all problems, it was just a start. With Messi, barca's wages were in total around €750m. The healthy number after Covid losses is €400m. That's the goal to reach next summer. Currently after Messi and some other departures, as well as new contracts with the new limit, the total wage is around €540m. So Laporta's board has still to do a lot of work in the next season to reach the goal. It would be incredible, if they can lower the total wage by nearly half in just 2 years.

The wage bill of €560M is counting on €100M+ in deferred wages.
Therefore next year should be much less.
 
It looks like it's going to become official soon.

FC Barcelona has reached an agreement to sell 10% of its rights from La Liga for 25 years. In return, the club will enter 205 million euros before June 30.
 
It looks like it's going to become official soon.

FC Barcelona has reached an agreement to sell 10% of its rights from La Liga for 25 years. In return, the club will enter 205 million euros before June 30.

The CVC deal is 100% for 50 years, right?
 
brad_pulling_random_levers_300_wht.gif
 
Love how they branded that "levers" as if it was some complex financial engineering when they're just selling rights for instant cash. That's actually the exact opposit of financial leverage, you're supposed to borrow money to increase your assets and increase return on investment when they're selling assets to get liquidities that will eventuelly decrease their ROI.
 
Love how they branded that "levers" as if it was some complex financial engineering when they're just selling rights for instant cash. That's actually the exact opposit of financial leverage, you're supposed to borrow money to increase your assets and increase return on investment when they're selling assets to get liquidities that will eventuelly decrease their ROI.
Mes qué un cnuts, though. Everything is dramatic.
 
Love how they branded that "levers" as if it was some complex financial engineering when they're just selling rights for instant cash. That's actually the exact opposit of financial leverage, you're supposed to borrow money to increase your assets and increase return on investment when they're selling assets to get liquidities that will eventuelly decrease their ROI.
I mean they can’t continue to operate without this move though. And financing the completion of the stadium will be a major money maker for them.
 
I mean they can’t continue to operate without this move though. And financing the completion of the stadium will be a major money maker for them.

Oh I know they don't have the choice and i'm not blaming them for doing so, but they should just stop branding that as if they were financial masterminds when they're just selling assets to pay the bills.
 
Love how they branded that "levers" as if it was some complex financial engineering when they're just selling rights for instant cash. That's actually the exact opposit of financial leverage, you're supposed to borrow money to increase your assets and increase return on investment when they're selling assets to get liquidities that will eventuelly decrease their ROI.

Barcelona do that or can't sign for many years.
Financial fair play is a very good and necessary thing, but that wasn't prepared for a pandemic. This year they realized the mistake and changed some things but still it's not enough.
Barcelona was much more profitable to ask for another loan of €595M at an interest of 1.98% to 10 years than the obligated agreements they have had to make.
But with that loan they still could not sign for many years. Nonsense.

And I don't know who you mean when you say Barcelona is bragging about the deal.
Laporta and several of the economic managers have said that the option of economic levers were not good but not doing them was much worse.
 
Love how they branded that "levers" as if it was some complex financial engineering when they're just selling rights for instant cash. That's actually the exact opposit of financial leverage, you're supposed to borrow money to increase your assets and increase return on investment when they're selling assets to get liquidities that will eventuelly decrease their ROI.
We don't have an oil country to back us up so we have to sell in order to buy. As much as I may dislike Real Madrid I was actually happy when they beat PSG. Who are partially responsible for this insane inflation of salaries and tranfers that led our most studid president ever to bankrupt us.
 
Barcelona do that or can't sign for many years.
Financial fair play is a very good and necessary thing, but that wasn't prepared for a pandemic. This year they realized the mistake and changed some things but still it's not enough.
Barcelona was much more profitable to ask for another loan of €595M at an interest of 1.98% to 10 years than the obligated agreements they have had to make.
But with that loan they still could not sign for many years. Nonsense.

And I don't know who you mean when you say Barcelona is bragging about the deal.
Laporta and several of the economic managers have said that the option of economic levers were not good but not doing them was much worse.

Chill, I was just talking about the fact that they branded this whole thing as "levers" when there's nothing close to financial leverage in these deals.
 
Chill, I was just talking about the fact that they branded this whole thing as "levers" when there's nothing close to financial leverage in these deals.

Laporta has called it in every way: economic levers, economic agreements, sale of rights. And he has explained many times what it consists of, anyone who has minimally followed the subject here in Spain or speaks Spanish knows perfectly well what it is, whatever it is called.
In this case, a euphemism is not being used to hide reality.
 
How much will the Frenkie lever help the FFP deadline on the 30th of June? Will they fall short and require additional levers?
 
How much will the Frenkie lever help the FFP deadline on the 30th of June? Will they fall short and require additional levers?

Not much unless they pull the "Deadwood Out" lever (Lenglet, Umtiti, Pjanic, Coutinho, their reserve GK-can't remember the name). They need to let Dembele go as well (it's for the best).
 
Dembele leaving on a free although it sounds like a positive for Barca actually hurts them in terms of amortization. They would need to account for the full remainder of his transfer fee in this years books, rather than spreading that over more years if he renewed. Plus, he is probably due a loyalty bonus.
 
Dembele leaving on a free although it sounds like a positive for Barca actually hurts them in terms of amortization. They would need to account the full remainder of his transfer fee in this years books, rather than spreading that over more years if he renewed. Plus, he is probably due a loyalty bonus on top of that.
Wouldn't the entire transfer fee be fully amortized by now though? As far as I understand it the amortization is spread over the players contract length..
 
Dembele leaving on a free although it sounds like a positive for Barca actually hurts them in terms of amortization. They would need to account for the full remainder of his transfer fee in this years books, rather than spreading that over more years if he renewed. Plus, he is probably due a loyalty bonus.
If his contract is finished this season his fee will have been amortised over this final year. It won’t go into next year.
 
Not much unless they pull the "Deadwood Out" lever (Lenglet, Umtiti, Pjanic, Coutinho, their reserve GK-can't remember the name). They need to let Dembele go as well (it's for the best).
Coutinho was already sold to Aston Villa.
 
Wouldn't the entire transfer fee be fully amortized by now though? As far as I understand it the amortization is spread over the players contract length..

When the financial year closes they would have to account for the remainder of the transfer fee, however if he renews then they could opt to spread that over the years of the renewed contract.

e.g. If there is 30m remaining then it is either accounted for this year or if he renews on say a 3 year deal they could spread that at 10m per year.

This is what Barca wanted to do in January to help the transfer budget (there were a few articles mentioning it), he refused so they tried to force a sale instead....
 
How much will the Frenkie lever help the FFP deadline on the 30th of June? Will they fall short and require additional levers?

Nothing, at the moment that Barcelona announces the agreement with the American investment fund will end the season in positive.
 
The great thing is we're buying De Jong from them and they're still going to be a mess due to who they're eying up to sign, who they will no doubt give daft wages to.
 
The great thing is we're buying De Jong from them and they're still going to be a mess due to who they're eying up to sign, who they will no doubt give daft wages to.

People still dont understand it's entirely for spanish financial fair play reasons.

Just an example to understand it:
If you sign a 5 year contract with a new player for €70m transfer fee and €20m wages, you have to devide the complete cost over the contract's lenght to know his yearly costs. In this example, it would be 170 (€100m in wages + €70m transfer fee)/5= €34m/year. The spanish ffp writes those €34m down as the clubs new yearly liabilities.
If you sell now a player for €70m and €20m wages, you instantly get €70m and save €20m in wages. That's €90m in total for this financial year.
Although financially speaking both players cost the same, you freed up €56m in ffp space for this year.

You see the difference? That's also the reason, why Bartomeu did those shady exchange deals with Valencia and Juventus (Cillessen and Neto, Arthur and Pjanic). You sell a player, the whole sum counts as income. You buy a player, you divide his cost over 5 years. So no, it's primarily not about wages or same transfer fees, but to free up space in the ffp.
 
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How much will the Frenkie lever help the FFP deadline on the 30th of June? Will they fall short and require additional levers?


It'll certainly help to lewa Robert over to Barcelona and 50m to Munich. That's all I care about.
 
People still dont understand it's entirely for spanish financial fair play reasons.

Just an example to understand it:
If you sign a 5 year contract with a new player for €70m transfer fee and €20m wages, you have to devide the complete cost over the contract's lenght to know his yearly costs. In this example, it would be 170 (€100m in wages + €70m transfer fee)/5= €34m/year. The spanish ffp writes those €34m down as the clubs new yearly liabilities.
If you sell now a player for €70m and €20m wages, you instantly get €70m and save €20m in wages. That's €90m in total for this financial year.
Although financially speaking both players cost the same, you freed up €56m in ffp space for this year.

You see the difference? That's also the reason, why Bartomeu did those shady exchange deals with Valencia and Juventus (Cillessen and Neto, Arthur and Pjanic). You sell a player, the whole sum counts as income. You buy a player, you divide his cost over 5 years. So no, it's primarily not about wages or same transfer fees, but to free up space in the ffp.
Great post!
 
The great thing is we're buying De Jong from them and they're still going to be a mess due to who they're eying up to sign, who they will no doubt give daft wages to.

Not true at all, I'd much rather be barca moving forward than United. Hell, De Jong still doesn't want to go to United.
 
People still dont understand it's entirely for spanish financial fair play reasons.

Just an example to understand it:
If you sign a 5 year contract with a new player for €70m transfer fee and €20m wages, you have to devide the complete cost over the contract's lenght to know his yearly costs. In this example, it would be 170 (€100m in wages + €70m transfer fee)/5= €34m/year. The spanish ffp writes those €34m down as the clubs new yearly liabilities.
If you sell now a player for €70m and €20m wages, you instantly get €70m and save €20m in wages. That's €90m in total for this financial year.
Although financially speaking both players cost the same, you freed up €56m in ffp space for this year.

You see the difference? That's also the reason, why Bartomeu did those shady exchange deals with Valencia and Juventus (Cillessen and Neto, Arthur and Pjanic). You sell a player, the whole sum counts as income. You buy a player, you divide his cost over 5 years. So no, it's primarily not about wages or same transfer fees, but to free up space in the ffp.

Depends on when you sell the player, if Barcelona sells De Jong today they get €70m for the transfer but save exactly €0 in wages for this financial year.