BARCELONA: By the point Barcelona kick off in opposition to Bayern Munich on Wednesday on the Camp Nou, they’ll already be removed from the Champions League. Xavi Hernandez’s aspect have only one win from their first 4 fits in Staff C, with a 3-3 draw at house in opposition to Inter Milan previous in October most probably sealing their destiny. Will have to the Italian aspect beat already-eliminated Viktoria Plzen previous on Wednesday on the San Siro, then Barcelona might be out.
For a membership which spent lavishly in the summertime on gamers together with Robert Lewandowski, Jules Kounde and Raphinha, in wearing phrases, the removal is embarrassing. Financially, it places extra pressure at the membership’s accounts which stood at 1.3 billion euros ($1.28 billion) in debt in the summertime, due to overspending and the COVID-19 pandemic, sooner than president Joan Laporta and the board pulled their notorious “palancas” – monetary leverage.
They bought 25 p.c in their Los angeles Liga tv rights for the following 25 years to American funding company 6th Side road Companions throughout two offers, for a mixed overall of an estimated 665 million euros. Barcelona additionally bought two 24.5 p.c stakes in Barca Studios to Socios.com and Orpheus Media, to assist fund their summer season spending spree and arrange their salary invoice, including an additional 200 million euros. The membership had accounted for attaining the Champions League quarter-finals, so a 2d consecutive group-stage removal will price them an estimated 20 million euros in prize cash, no longer counting income from price tag gross sales or tv rights.
However, they are going to earn some source of revenue from a possible Europa League run, albeit considerably not up to within the Champions League. They are going to additionally avoid wasting cash through no longer having to pay participant bonuses tied to Champions League development. “In the event that they cross out of the Champions League, they are going to lose source of revenue but additionally prevent paying bonuses, thus, saving cash. (Their scenario) gained’t range a lot this season,” stated Los angeles Liga president Javier Tebas on Friday.
Deeper issues
Los angeles Liga’s personal monetary truthful play spending laws save you golf equipment from overspending on switch charges and salaries, according to their debt ranges and source of revenue. Barcelona prior to now may just best spend 1 / 4 of any cash they earned in consequence. Harnessing their monetary leverage this summer season helped them get previous the rule of thumb and revamp the squad, however subsequent summer season issues beckon except they may be able to cut back their overblown salary invoice. “The palancas labored for this 12 months, they stated it themselves, however for subsequent season they may be able to’t do it once more, they have got to cut back their wage,” added Tebas.
“They are able to’t proceed with 500 million euros of wage to pay, they have got to cut back it to 400 or a little bit extra, like Actual Madrid and different giant Eu golf equipment. If no longer, subsequent 12 months they are going to be again at the 1:4 spending ratio.” Sergio Busquets’ contract expires in the summertime however one of the vital squad’s different highly-paid gamers, together with Gerard Pique and Jordi Alba have longer to run on their offers. Champions League removal unquestionably gained’t assist Barcelona’s monetary scenario, however a extra being worried factor is that overblown salaries passed out through the former Josep Maria Bartomeu regime are nonetheless weighing the membership down.
After failing to achieve agreements with some gamers over a pay aid in the summertime, Laporta and membership treasurer Ferran Olive put ahead a ensure of round 11 million euros of their very own cash, to make sure Kounde was once registered. Irrespective of whether or not they’re removed or there’s an not going Champions League “miracle”, except Barcelona can cut back their salary invoice within the months to come back, subsequent summer season they are going to should be considerably thriftier. – AFP