Real Madrid and Barcelona's debt

Imagine having such a terrible financial situation and still resisting the transfer of power as much as their previous management (Bartomeu and co) did.

How do you justify spending so much money on transfers and wages when your debt burden is this high?
 
Griezmann+Coutinho+Dembele costed more than 300 million (without considering the wages)
 
The ironic thing is that it was Messi's wages that killed them.
 
Don't worry, Spanish banks/government will bail them out again.
Then EU will bail out the Spanish banks/government again.

Dutch/German taxpayer money well-spent.
 
Can’t say I feel bad for Barca, they lost their soul the past decade with their transfer activity. They used to be much more likeable when they were relying on academy players to be the core of their teams, they were very much the anti-Galactico to Madrid’s transfer approach. Now it’s Madrid who have been investing quite heavily in young players while Barca has funded expensive flops. Maybe this threat of financial disaster will lead them down their roots again to investing and looking more into their academy for first team players.
 
::sonny:: said:
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.
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They are already bankrupt.
 
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.
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Bailed out? Spurs have one of the best credit ratings going. Many banks are very happy to lend money to us, seeing as we are one of the most valuable clubs in world football and generally - the Covid-era aside - make big profits.
 
SilentStrike said:
Don't worry, Spanish banks/government will bail them out again.
Then EU will bail out the Spanish banks/government again.

Dutch/German taxpayer money well-spent.
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Your last point is the one thing that gives me pause. The optics of this are horrible right now.
 
GifLord said:
It wasn't
The spending probably was. Last 4 seasons over 900mil € spent on players
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They raised a fair bit of money in sales too.
Putting Messi on €1m+ a week inflated their wage bill exponentially. You can't look at Messi's wages in vacuum. The entire squad and new players had to be paid obscene wages. It was unsustainable.
 
Not surprising, their transfers have been wildly out of control.... which forget the big ones, is summed up by nearly £20m on Braithwaite. Wages are out of control, and only Messi partially justifies it, the team's marketability will plummet without him, even at 34. You can clearly see the Ronaldo hole in Madrid and the massive spike he's given Juventus/Serie A as a whole.

It's a mad world.
 
Barca still owe Liverpool 70m euros?!! :eek:

Feck me, I finally understand the meaning of "the gift that keeps on giving". :drool:
 
MadDogg said:
Is this something we should be looking to take advantage of? I really haven't watched them for the last few years, what players do they have that we could take off their hands for a good (for us) price?
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I’d take De Jong even if he isn’t setting the house on fire. I’m genuinely not sure who else (not including Messi). Coutinho and Griezmann would be a bad fit.

I need to refresh my memory over their squad but I don’t think anyone stand outs massively.
 
MadDogg said:
Is this something we should be looking to take advantage of? I really haven't watched them for the last few years, what players do they have that we could take off their hands for a good (for us) price?
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Would have to be Frenkie. Would be a dream signing.
 
Dumbstar said:
Barca still owe Liverpool 70m euros?!! :eek:

Feck me, I finally understand the meaning of "the gift that keeps on giving". :drool:
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Imagine still owing money for a player that you've already loaned to another club who then subsequently scored against you during one of your most humiliating matches ever :lol:
 
Would the optics of the government bailing out a football club, during the pandemic, that are in this situation purely down to their own mismanagement really be something the government of Spain would want to get into?
 
SilentStrike said:
Don't worry, Spanish banks/government will bail them out again.
Then EU will bail out the Spanish banks/government again.

Dutch/German taxpayer money well-spent.
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As they are part of the EU, this won't be allowed to happen. It will be state aid and anti competition to do this and they will get their asses taken to court by everyone to stop it from happening.

I can see stadium naming rights being commercialised and the kit will be renewed sooner or later.. Private finance is their only hope :-). I'm sure the Spanish govt is broke and I wonder if they have any real estate left for sale and leaseback?.
 
Cloud7 said:
Would the optics of the government bailing out a football club, during the pandemic, that are in this situation purely down to their own mismanagement really be something the government of Spain would want to get into?
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In the end Spanish politicians are beholden to the Spanish people, and they'll want them to do it. Optics be damned. But it's going to fuel right wing rhetoric in other EU nations.
 
Dumbstar said:
Barca still owe Liverpool 70m euros?!! :eek:

Feck me, I finally understand the meaning of "the gift that keeps on giving". :drool:
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You'll regret it when they restructure their debts and you end up getting <70m from them. If you owe someone 20$ it's your problem, if you owe someone 20M it's their problem and all that.
 
Teja said:
You'll regret it when they restructure their debts and you end up getting <70m from them. If you owe someone 20$ it's your problem, if you owe someone 20M it's their problem and all that.
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There would be many bridges to cross, and burn, for Barca to get themselves into that final state. If they get to restructuring stage they are truly fecked as a club and as a brand.

Like many have said here, they'll be saved by the heroic Spanish people's tax money. Ey, Jose, make the cheqhhh out to Anfield, la.
 
We should offer them what they owe Ajax for De Jong.

He’s exactly what our midfield needs at #6.
 
about time Uefa, Fifa sort this out, there is so much money in football that no club should be running with debts,
 
Aren’t Barcelona having the Nou Camp redeveloped as well?
 
SilentStrike said:
Don't worry, Spanish banks/government will bail them out again.
Then EU will bail out the Spanish banks/government again.

Dutch/German taxpayer money well-spent.
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The EU is a much better deal for countries like Germany and the Netherlands than Spain, yeah, you should be thankful.
 
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