For the last few years, FC Barcelona have been facing financial problems, which sprang mainly from the mismanagement of finances and expenditures by the Bartomeu administration. Since the arrival of Joan Laporta as the President, things have been improving, but the club still has more improvements to make.
In the last year alone, there have been significant changes in the Barcelona squad, resulting in a net decrease in the wage-related expenditures for the Catalan club.
Barcelona wage bill reductions
As Mundo Deportivo reports, La Liga is set to announce the squad cost limits for its member clubs on Thursday. One of the major points for La Liga to consider in this regard would be the significant reductions that FC Barcelona have made in their wage bill.
The club has reduced its wage bill by €161.7 million in the last year, with Barcelona’s current wage bill standing at €404.7 million as compared to €566.4 million for the previous year. With this reduction, the wage bill amounts to 54% of the club’s income, which stood at 74% last season.
This reduction has been made possible only after ceaseless, constant work by the club executives. €212.1 million was saved with the exits of Griezmann, Pique, Trincao, Busquets, Alba, Nico Gonzalez, Kessie, Dembele, Dest, Lenglet, Fati, Garcia, and Abde.
The additions, Gundogan, Romeu, Felix, Cancelo, and Martinez, add a strain of around €50.5 million in wages and amortization costs. Thus, the club’s operations have been in net total during the last year, which will allow the Catalans to enter the winter market in even more favorable conditions.
Problems remain for Barcelona
However, one of the problems for Barcelona will arise in regards to the money the club is set to receive for the sale of 49% of rights for Barca Studios to Orpheus Media and Socios.com. The income set to come from this source was recognized by the league in the plan submitted by Barcelona.
While the Catalans have received the first installment of €20 million, it has not yet received the second payment of €60 million that it was set to receive in June. Barcelona has been able to realize only €20 million of this sum, and that too with a personal guarantee by the club President, Joan Laporta.
Now Barcelona will have to fetch these €20 million guaranteed by Laporta, in addition to the rest of the €40 million to catch up to its feasibility plan. The club will have to fetch this amount before January 1st if it wants to go to the winter transfer window with full operational capacity.
