Barca on the brink of bankruptcy: Owing money for salaries and 19 transfers!

Barca on the brink of bankruptcy: Owing money for salaries and 19 transfers!

Seeing how Barcelona had a yard sale, not a transfer window in the summer, it's not a secret that the club is in a dire financial situation. But exactly how deep did the now-former president Josep Maria Bartomeu dug the club in the financial swamp? Finally, a great piece of the puzzle is revealed as the numbers came out showing that the circumstances are far graver than expected.

Barcelona is owing money both to other clubs and to its own players! Yet, the club has also topped the revenue rankings in Europe when disregarding player sales!

Just these two sentences show just how much Bartomeu's reign has been reckless as the club that is earning the most for the second year running is in a financial debt of €820,000,000! The club’s total amount of money owed – including to players, tax authorities, suppliers and the bank – stands staggering €1.4 billion!

Other clubs are waiting for payments on 19 players and their moves to the Camp Nou, including several who are no longer at the club.

The club’s short-term debts for these transfers stands at €126,000,000 while the longer-term payments are even bigger, standing at €196,000,000. Yet long-term and short-term in talks of transfer payouts are not that far different. No selling club is going to wait for their payment for five years.

For comparison reasons, the Spanish media revealed that the net debt of Real Madrid stands at €355,000,000 net while it's at €901,000,000 for the gross debt. Still vastly better than their closest rivals with the club having a more balanced, broader squad. Although, their half a billion worth of investments have rarely really paid off so far.

Barcelona transfer debts 

But Barcelona is in crippling debt and there are plenty of clubs across Europe that are suffering as a result of their unpaid debts. Liverpool being one as the Reds are still owed €29,254,000 in the short term, with the club owing €40,000,000 for the Brazilian that has so far, heavily flopped at Nou Camp. Reports state that the transfer can still rise if Coutinho is to play more games, reach more milestones. With it, so will the debt.

The club owes even more in the long-term for the Frankie de Jong transfer from Ajax. As the Amsterdam club needs to receive €16,000,000 in the short-term, but €48,000,000 in the long-term for the 23-year-old.

It's not the biggest debt on paper, as the 31-year-old Miralem Pjanic will cost the club €52,861,000 in the long-term. Although, this move was a swap for Arthur Melo and money everywhere but on paper, so Juventus is the one owing money. Yet again, the Bosnian midfielder hasn't made an impact and is in a ripe age meaning he is unlikely or impossible to return the investment in future fees. Probably not even in performances. It was known that this deal was bad for Barcelona, the numbers just explain how much.

Barca is still owing money for the transfer of Arthur Melo at that, to Gremio. Around €8,000,000 in the short-term and €13,500,000 total! He arrived in the summer of €2018 for a fee of €31,000,000.

Blaugrana still has a lot to pay for the transfer of Malcom who was brought in for a fee of €41,000,000 and sold a year later for a million fewer. Girondins de Bordeaux still need to receive €10,114,000 of that deal!

The goalkeeper Neto has to be paid €13,000,000 to Valencia as well. Matheus Pereira, little known player brought in from Juventus still symbolizes a debt of nearly four million euros. The club is still owing nearly half a million for Denis Suarez, who was shipped off and brought in many times for the club. But this debt dates to 2016!

Trincao, one of their most recent purchases is still to bring in Braga nearly €10,000,000.

What is one of the most interesting lines in the Barca accounts, is the €5,000,000 owed to Atletico Madrid for preferential rights. Meaning that, as speculated, Barca paid to Rojiblancos for the right to have the first call on some Atleti players in the future. Both clubs denied it at the time, but it's now clear it was true. Will they even have money to buy some stars from the Wanda Metropolitano? Now it seems highly unlikely and the opposite happened this summer as the Madrid side brought in Luis Suarez.

The Nou Camp club still has a lot of short-term debts that all add up. Emerson was brought in from Atletico Mineiro and six million more need to be paid for the 22-year-old that hasn't played a single game at the club. Jose Arnaiz that came from Real Valladolid has €250,000 of debt next to his name.

Junior Firpo, who is expected to leave if not now, than in the summer, still amounts to a debt of €9,000,000. Marc Cucurella, Barcelona's academy product that was sold, brought back with a buy-back clause, and shipped away again, has to be paid €2,420,000 too!

Mattheus Fernandes of Palmeiras still carries four and a half million of euros in debt. The Club has to give more than three million for the little-known Pedro Gonzalez and Rey Manaj too!

Even Bayern Munich is owed for the transfer of Arturo Vidal, nearly a million euros. But the Chilean was given away for peanuts in the summer due to poor financial planning and short-sightedness.

Furthermore, the club even has €6,500,000 of "other" debts as well in the short-term.

Overall, the club has €126,000,000 of short term debts. The club is owed €46,000,000 from other clubs, mostly by Zenit St. Petersburg for Malcom’s transfer, fewer than €10,00,000, but it’s a small consolation.

Barcelona wages debt

This is what the Catalan giants are owing to their counterparts across the world. But Barca is also owing money within the club. The players are paid in two increments over the year, in December and in June, but they haven’t received the money at the end of 2020. Even with the pay cuts they took to help the club.

Now, the club is assuring them they’ll get everything they are owed in February. The financial team wasn’t able to provide the salaries to their players due to lack of liquidity.

Yet all of these problems come when Barcelona has topped the Deloitte money league list, ranking the club with the biggest revenue bar transfer sales. That is, including commercial, matchday, and broadcast. Barca has the highest revenue through these metrics for the second year running, yet the club is in shambles?!

Barcelona has enjoyed a 15-year era in which they climbed the stature ladder and became a certified World Class club. On the wings of Lionel Messi's brilliance, obviously. Winning 10 leagues, six Copa del Rey trophies, eight Spanish Supercups, Four Champions League trophies, five UEFA Supercups, and three FIFA Club World Cups. But it seems for that to continue, to be sustainable, the club will need to be led in a completely different way.

It’s not surprising that the club is having presidential elections as the pressure on Bartomeu was too big and he had to withdraw from the position. Looking at the ruin he left, the pressure should’ve been higher.


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