Look muppets….
This whole saga is a pre-meditated orchestration by LaPorta and the Barca executives. They are playing the long game here. Throw as much chaos into the marketplace as possible by agreeing to deals with the players and player agents, who are dying to play with Xavi at a legendary club in a great city. They see this as destabilizing their rivals and waiting until the last possible moment fecks up rival club planning.
At some point, however, they will have to deal with the selling clubs, and those clubs want cold, hard cash. No club in their right mind would accept significant deferred payments from Barca. Furthermore, the selling clubs have even more leverage because it is a World Cup year, and if players threaten to sit because they are getting their move, they risk being dropped from their national teams.
Barca has a mountain of debt to balance — 440m — before they can even register new players. On top of that, the incoming free signings will be on high wages as well. Although they have raised cash through the pre-sale of TV revenues, that comes in as a one-time cash injection on the balance sheet, but remember they have sold those revenues, so they will not appear on their operating income. According to LaLiga rules, wages can only be 60% of club revenues, so your operating income base just went down…
Basically, it’s like those convenience stores that give cash in advance for borrowers with stable jobs — the paycheck advance model. The borrower gets an advance of funds, the repayment is promised as a lien on wages, plus 15%. Therefore the cycle continues…
‘The only way Barca is going to get out of this is to sell assets and reduce payroll. They know it and everyone else does too.
My prediction is that all of these new signings will not be registered (a la Messi last year), they’ll sell as many assets as they can and the smart clubs with cash will be waiting on this til the end of the window or the registration deadline, whichever comes first.