Real Madrid and Barcelona's debt

Like Icarus they reached for the sun with mega spending crazy transfers. A lot of clubs actually.

Now they're going to go down in flames.

Few English clubs like Spurs and Arsenal already got bailed out by bank of England loans.
 
Barca genuinely need to let Messi go now, they're going to struggle for the next few years but have enough talent to get passed it.

Think they need to forget the superstar transfers and just stick to good homegrown players like they built their reputation on.
 
Will it actually happen though? I can’t see Spain allowing them to be bankrupt
 
Barcelona close to the bankruptcy

From gazzetta dello sport (Google translator)

Barcelona, economic crisis nightmare: debts exceed one billion euros Barcelona is in crisis. Very deep. And we are not talking about sports, but economic issues. Several media have accessed the Catalan club's economic memory for the 2019-2020 season, and the numbers are appalling. Futbol Club Barcelona's total debts exceed € 1 billion, standing at € 1,173 million. Of these, 730 are defined in the short term, and the remaining 443 in the long term. Under the item net working capital there is a loss of 602 million euros.

La Liga has forced Barça to cut the salary bill by 192 million this season, and anything that won't be spared during 20-21 will automatically switch to 21-22. Because the Camp Nou club came to the start of the 'temporada' with a salary that eats 74% of turnover. According to Deportes Cuatro, Barça is looking for a loan to try to offer a new contract to Leo Messi, but with these assumptions the idea of being able to even think of retaining the Argentine seems unlikely and economically viable.
 
THE PAYABLES OF THE CLUBS - In the papers that emerged today in Spain, the debts and credits of Barça with other clubs are detailed with great precision: the Catalans have to pay over 196 million euros to clubs across half of Europe, of which 126 in the short term, while they must collect over 85 million, of which 58 million quickly. Again, the balance is negative: the debts are more than 111 million, and if we talk about short-term maneuvers the negative balance is 68 million.

THE LIST OF CREDITORS— Barça has yet to give Liverpool 70 million euros for Coutinho, 30 of which are short-term. The most expensive player in La Liga history at Barcelona has never adapted and has just returned from loan to Bayern, after winning the Champions League with the Bavarians, scrambling Barça 8-2 on their way to triumph. Ajax must collect over 48 million for De Jong; there are almost 21 and a half million to give to Gremio for the Juventus player Arthur; almost 20 in Valencia for former Juventus player Neto; over 20 million to Bordeaux for another Brazilian, Malcom, 'mugged' from Roma in 2018 and already sold to Zenit; another 10 to Atletico in the Griezmann affair, another very expensive player and hitherto unprofitable; almost 20 to be sent to Portugal to Sporting in Braga for Trincao, who almost never plays. These are the highest figures, but the list of creditors is still very long.
 
EXCHANGES WITH JUVENTUS— Four players who have traveled in recent months between Turin and Barcelona: Arthur and Alejandro Marques have left for Italy, Pjanic and Matheus Pereira have done the opposite. Barça expects 5.7 million from Juve for Arthur and 4.1 for Marques, 9.8 in total, but owes 4.8 million to the Juventus club for Pjanic and 3.7 for Marques, total 8.5. This in the short term, because later on for Pjanic and Arthur the two clubs have payments of about 50 million more. And painless.

AND THAT OF THE DEBTORS—
The list of debtors starts with Zenit, who for Malcom must pay almost 9 and a half million to Barcelona; who must receive almost 6 million from Getafe for Cucurella (but Barça must still give 2 million to Eibar for the same player, who by the way was a former blaugrana canterano); and then 4 million from Rome for Carles Perez; and 3 from Sassuolo for Marlon; another 3.3 from Everton for Lucas Digne; and 1.7 from Schalke for Todibo. But aside from the details of these transfer market operations, what really worries is the general state of the Blaugrana economy, which is close to collapse.
 
I am sure Real had the same problem back in 1999 etc. It seems that only Valencia has paid the price of mismanagement.
 
Breaking news (from marca.com in English)

https://www.marca.com/en/football/barcelona/2021/01/25/600ef3e646163f7a3b8b4588.html

16115924646767.jpg

16115895706428.jpg
 
led_scholes said:
I am sure Real had the same problem back in 1999 etc. It seems that only Valencia has paid the price of mismanagement.
Click to expand...

Aye, land deals and land swaps with the local government and property revaluations, there was a 5400% increase in the valuation of property over a period of a few years or something like that. It led to a massive write off of debt around 2014.
 
Wonder if Barcelona would be willing to sell De Jong to help get out of debt. Would be a nice Matic replacement.
 
ClaytonBlackmoorLeftPeg said:
zero chance.

the clubs are too important to Spain. They will always get bailed out.
Click to expand...
But on what terms?

Would the Spanish Government give Barca (hardly Government lovers, want independence) as generous a deal as they give Real Madrid?

One of the terms should be they can never use "more than a club" ever again
 
Mb194dc said:
Like Icarus they reached for the sun with mega spending crazy transfers. A lot of clubs actually.

Now they're going to go down in flames.

Few English clubs like Spurs and Arsenal already got bailed out by bank of England loans.
Click to expand...
But that was to cover operation costs, lost matchday income.

Real (and Barca in particular) have been flirting in the red for some time and their debt is down to pure mismanagement. It's no wonder they are pushing for a super league.
 
How much € to build apartment blocks over the camp nou then :lol: ?

All those terrible transfers coming home to roost. Get the La Masia kids in again. Neo galacticos was a terrible strategy.

Seriously though the longer covid goes on for the worse the economic damage will be. All clubs will take a huge hit and the economy generally will be very bad.
 
Just looking at the deals, why the hell would they spend around 25 million in a backup GK?
 
Kyonn said:
Maybe strategic bankruptcy but the Spanish government would bail them out before they fold.
Click to expand...
But why? Let them go bankrupt, it’s not prudent to use taxpayer money during pandemic to bail out football clubs
 
The Goalkeeper thing was basically a swap with Valencia if I remember correctly, Neto, for Cillesson. Basically swapped one back up keeper for another. A classic Bartomeu brainwave there.
 
::sonny:: said:
THE PAYABLES OF THE CLUBS - In the papers that emerged today in Spain, the debts and credits of Barça with other clubs are detailed with great precision: the Catalans have to pay over 196 million euros to clubs across half of Europe, of which 126 in the short term, while they must collect over 85 million, of which 58 million quickly. Again, the balance is negative: the debts are more than 111 million, and if we talk about short-term maneuvers the negative balance is 68 million.

THE LIST OF CREDITORS— Barça has yet to give Liverpool 70 million euros for Coutinho, 30 of which are short-term. The most expensive player in La Liga history at Barcelona has never adapted and has just returned from loan to Bayern, after winning the Champions League with the Bavarians, scrambling Barça 8-2 on their way to triumph. Ajax must collect over 48 million for De Jong; there are almost 21 and a half million to give to Gremio for the Juventus player Arthur; almost 20 in Valencia for former Juventus player Neto; over 20 million to Bordeaux for another Brazilian, Malcom, 'mugged' from Roma in 2018 and already sold to Zenit; another 10 to Atletico in the Griezmann affair, another very expensive player and hitherto unprofitable; almost 20 to be sent to Portugal to Sporting in Braga for Trincao, who almost never plays. These are the highest figures, but the list of creditors is still very long.
Click to expand...

This is fecking insane. What a fecking joke.
 
Alemar said:
But why? Let them go bankrupt, it’s not prudent to use taxpayer money during pandemic to bail out football clubs
Click to expand...

Prudent in a purely utilitarian since, no, but very practical when consider half the country are supporters of those two clubs.
 
From what I heard, one of the solutions that would be proposed (apart from the super league) would be to partially become a public limited company, in which the "socios" continue to be owners.
I don't remember exactly the formula.
Regarding government aid, I do not think they would have problems with the freedom of action that the autonomies have in Spain, with the current national government and with Laporta, much more in favor of putting politics in the club, unlike Bartomeu.
 
VBI said:
The Goalkeeper thing was basically a swap with Valencia if I remember correctly, Neto, for Cillesson. Basically swapped one back up keeper for another. A classic Bartomeu brainwave there.
Click to expand...

They did it to balance the books because the accounting treatment is different for a player sold compared to a player bought. It’s pure manipulation of the books and I can’t believe the loophole hasn’t been looked at. Why would the two clubs swap similar players for €25m? At least twice their market value.
 
Need to sell off players. Even if it is for less money then expected. They got lot of players who they can sell to bring lot of money. I don't see problems with that. Better then going out of business.
 
BeforeKeanetherewasRobson said:
But on what terms?

Would the Spanish Government give Barca (hardly Government lovers, want independence) as generous a deal as they give Real Madrid?

One of the terms should be they can never use "more than a club" ever again
Click to expand...
Madrid didn't get the deal from the government, it was the city council. You can bet catalan institutions will do whatever is in their power to help them
Guy Incognito said:
But that was to cover operation costs, lost matchday income.

Real (and Barca in particular) have been flirting in the red for some time and their debt is down to pure mismanagement. It's no wonder they are pushing for a super league.
Click to expand...
Real Madrid's financial troubles are entirely down to COVID and simple bad timing. If COVID hit in 2018 they'd be the healthiest big club around. Which they likely still are btw. They haven't been flirting in the red some time at all, and while they have been mismanaged on a sporting level, on a financial one it's one of the best run big clubs in the world
 
Anyone else feel like it was the Neymar transfer that broke them?

Signing him in the first place was dodgy embezzlement but him moving to PSG completely broke them. They somehow came out worse in a deal that they got £200m from, and spunked that and a lot more of it away in the next few years. I guess that's the danger of fan ownership and populism driving a clubs financial policy.
 
Skills said:
Anyone else feel like it was the Neymar transfer that broke them?

Signing him in the first place was dodgy embezzlement but him moving to PSG completely broke them. They somehow came out worse in a deal that they got £200m from, and spunked that and a lot more of it away in the next few years. I guess that's the danger of fan ownership and populism driving a clubs financial policy.
Click to expand...

But the sale to PSG completely bailed them out from the Neymar deal. They just preceded to blow it again.
 
Imagine how much worse this going to get for Barcelona if they miss out on the CL next year.
 
maybe it’s time to stop paying stupid salaries to players? Maybe it’s time to discontinue practices of buying stars (and get back to nurturing own youth)? Maybe it’s time to say goodbye to Messi and his obscene wages? All the above is better than ask for taxpayer help
 
You must log in or register to reply here.