FC Barcelona have long been suffering from their financial weaknesses, which have also crippled the club in other core areas. However, good news is in line for the club, as the club has met some of its wage bill requirements.
FC Barcelona’s wage bill has been a source of contention between the club and La Liga for the last few months. The League decision-makers have been asking the club to reduce their wage bill in order to comply with the league’s financial fair play rules. Barcelona were asked to reduce their wage bill by €150-200 million when their total wage bill stood at €655 million.
The latest report from Ferran Correas of SPORT indicates that FC Barcelona have successfully achieved this objective of reducing their wage bill. The club’s wage bill now stands at €450 million, around €200 million lower than the previous wage bill of €655 million.
A major portion of this decrease in the wage bill has come in the form of departure of some of highest paid players from the squad. Gerard Pique has already retired, while Jordi Alba and Sergio Busquets will also be leaving the club at the end of the season. Around €120 million will be reduced from the wage bill with the departure of only these three players.
Thus, the club has successfully achieved the objective of lowering its wage bill in accordance with La Liga’s requirements. As a result, the club will be able to return to the 1:1 rule regarding players’ salaries.
Previously, the club was subject to the 1:3 rule, under which the club had to obtain €3 for each €1 spent on player wages. With the 1:1 rule, the club would only have to bring in €1 for every €1 spent in player wages to remain within the FFP confines.
Thus, the club has made significant and clear progress towards its short-term financial goals, which will make it easier for the club to sign new players and get their contract renewals registered by La Liga. However, more work needs to be done to ensure the long-term financial health of the club.
