Barcelona 'are approaching a BILLION EUROS in debt'
Barcelona ‘are approaching a BILLION EUROS in debt with almost half of it to be paid within a year’, leaving the club facing more cuts to avoid insolvency
- Barcelona’s financial situation has been impacted massively by coronavirus
- The club’s debt has grown following a sizeable hit to the LaLiga side’s income
- It means a period of austerity looms for them as they fend off insolvency
Barcelona’s growing debt is set to force the club into a period of dramatic austerity, with the Catalan giants owing nearly £1billion to creditors.
The LaLiga side announced during the 2019-20 season that it expected to be the first club to break the £1bn barrier for income in a single year in football, however that figure was blown off course by the coronavirus pandemic.
As a result, the club took a loss of almost $100m (£73.5m) for the campaign, and there are concerns this season could be worse.
Barcelona are facing a moment of real financial toil and are trying to stave off insolvency
And according to Catalonia’s leading newspaper La Vanguardia, that has added to the total the club owes, with a net debt of €500m being topped up by a ‘runaway’ deficit amounting to more than €400m.
The piece explains that the next president and his board will have to deal with the situation as a priority, with €420m of that debt owed in the next 12 months.
That is something the club cannot currently afford, and so a expensive restructuring of those debts will likely be needed, throwing the club into a further financial hole.
Boss Ronald Koeman has been forced to be pragmatic in his hunt for new additions on the field
There is also the small matter of the club’s wage bill, which was restructured by Josep Bartomeu in the height of the cornavirus pandemic in a bid to ease the club’s outgoings last year.
That saw players agree to forego nearly half the entire wage bill, with €170m of the €355m paid to stars annually witheld.
However, that money is still due to be paid, with €45m extra due to players each year for the next four seasons.
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