Barça only has 30 million to avoid bankruptcy

18/11/2020 05:00

Ahead of

Javier Tebas, president of the Professional Football League (LFP), named this Tuesday the bankruptcy as a possibility for the clubs of the First and Second Division to solve the financial problems derived from covid-19. In the presentation of the salary limits of the 40 teams of the two main competitions, the Spanish soccer president cited the Barça as the Barça entity with the most critical situation, which is why it required the current management board to “take the bull by the horns.”

According to official sources, the institution barely has equity of 30 million, Therefore, if the season closes with losses similar to the previous one, it would enter into bankruptcy. Something unusual in the centenary Spanish club, which would be doomed to sell assets or become a public limited company to balance its assets. The first option would mean decapitalizing the squad, which would mean giving up competing at the highest level, both in the local league and in Europe. “These types of clubs”, also referring to the Real Madrid, “They would have to mark a year of transition, you cannot be competing for the same thing,” Tebas said.

Agustin Marco

The Barça entity, after reducing the salary of its players, has started talks with banks to obtain liquidity and with suppliers to delay the payment of charges

The second option is to go from a club whose owners are the partners, as currently, to become a public limited company, whose owners would be those who had the shares in their name. This is the case with all members of the League, except Real Madrid, Athletic Club de Bilbao, Club Atlético Osasuna and Barça itself, that just a decade ago avoided becoming public limited companies thanks to their good financial management.

For this reason, Carles Tusquets, the current president of the management committee that presides over the club after the resignation of Josep Maria Bartomeu, has asked the players for a salary cut of close to 40% to prevent the entity from ending the 2020-2021 season again with losses similar to the one previous campaign, which ended with 97 million red numbers. These handicaps, caused by the drop in income due to the pandemic, have reduced equity from 130 million to just 30 million. If the current course ended with similar figures, the club would go into dissolution, so it would have to recapitalize with some of the options listed above.

Tusquets, a Barça historical, who was already treasurer with Josep Lluís Núñez, has raised with the players the “adaptation” of salaries to lower the salary mass, which this year cannot exceed 382.11 million by order of the LFP. This limit represents a cut of 274 million compared to the 656.42 million of the previous season, in which the club saw its income plummet by 200 million due to the effects of covid-19.

Fermín de la Calle

The fall in income this season triggers the wage bill to 80% and Bartomeu needs to activate emergency measures to lower it

The entity earns about 150 million per year for the membership fees, the tickets to the Camp Nou and the operation of the boxes, money that this year will not be able to count on, since the ban on entering the sports facilities continues. Furthermore, given the current health situation, the public is not expected to be able to return to the stadiums until next season, according to Tebas, despite the fact that Barça had included in the 2020-2021 budget that at least 25% of the capacity could be covered from February, and up to 50% in May. The club had estimated a profit of one million euros for this season, so any downward deviation would lead it to approach the bankruptcy.

Tusquets wants the staff to accept the salary cut in exchange for extending the contracts, so officially it would not be a reduction. But, in case they do not sign, the current president will approve next Monday in a unilateral this decrease in the millionaire salaries of its stars. A measure that, according to financial sources, would mean that footballers could leave the club immediately, as Barça broke the conditions agreed in their contracts. FC Barcelona denies this possibility, stating that the reduction in salaries would be motivated by an extreme situation beyond the ordinary management of the club. But legal sources of First Division footballers of the highest level point out that this situation is very likely.

January, key month

The entity will make a final decision next Monday, because it does not have liquidity to deal with the ordinary invoices of the suppliers, to whom it pays more than 120 days, far exceeding the government limit of 60 days. But the date that worries the club and the creditors is January, since at that moment he has to pay about half of the chips of the contracts of his ‘cracks’, to those who pay a symbolic monthly salary, but to those who earn their contracts in the middle and at the end of the season. In January, the club will need about 200 million to meet current salaries.

Barça, which in June got credit policies for around 100 million euros with State guarantees through the ICO, like Real Madrid, it has already considered creating small companies to bring shareholders into divisions such as museum management or the store network. But any decision should be made by the new president who comes out of the elections on January 24, at which time he will have to face a large part of the player’s file.

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Messi’s departure from Barcelona will not affect television contracts

Editorial Mediotiempo

Mexico City / 26.10.2020 14:57:23

He president of the League, Javier Tebas, you want Lionel Messi continue on Barcelona, but in case he goes to another league, ensures that it will not affect economically, in terms of television contracts.

“I’d rather you stay, but it’s not a matter of life or death“Said Thebes at a conference at the Cardenal Herrera CEU University of Valencia.

Thebes acknowledged that if he left last summer, there would have been a problem. “But our rights for the next four seasons were already signedWe would have had three years to recover ”, he added.

​”We can be calm “commented that the television agreements they do not have any penalty if Messi leaves the Spanish League.

In 2021, Messi would pass al Manchester City, who bets everything to go for the Argentine, who would like to emigrate after a lifetime at the culé club.

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The misrule of Spanish football

This weekend begins a new season in Second B, next week the European competitions and the misrule that exists in the organization of football with CSD, LaLiga, RFEF and UEFA, will be captured in images that escape any logic. There will be an audience in the stadiums in Second B, but not in all. There will also be an audience in the stands of the Primera clubs, but only from some and only in European competitions, not in LaLiga. What’s the point of it? Does the virus depend on the category or if the party is national or international? It is the incoherence of Spanish football.

In order for them to understand the reason for this surreal situation, they have to know that there is no single command that can decide whether or not there are fans in each of the stadiums. The CSD, which presides Irene Lozano, has tried to mediate in this matter but it has been impossible and according to agency sources, they are already incapacitated for everyone to go hand in hand. The CSD has the authority to allow or not the entry of fans in the First and Second Division matches, in addition to the Endesa Basketball League. Here his jurisprudence ends. Second B, or non-professional football, belongs to the RFEF and the Champions League and Europa League matches are delegated to UEFA by each Autonomous Community. For example, in Catalonia, where the F. C BarcelonaIn the Champions League the entry of the public is prohibited but in Euskadi, where Real Sociedad plays, no. Your president, Something in Aperribay, has confirmed that they will apply the Bizi Berri II plan of the Basque Government and that there will be public in the match of the women’s team, the Real Sociedad subsidiary and the first team in next week’s Europa League meeting in which they want there to be 1,000 fans against Naples.

Aperribay says only to comply with the rules and they will abide by the decision of the Basque Government if they are denied this possibility, but just as Real Sociedad wants there to be an audience, not all clubs think the same. Real Madrid, Atlético de Madrid and Getafe they don’t want fans in their stands. Barcelona, ​​one of the most economically punished clubs, has requested that they be public next week in the Champions League match against Ferencvaros. The Barça club wants the number of fans to increase gradually to 30%, which is the maximum allowed by UEFA. He Seville and Granada They have requested permission from the Junta de Andalucía to refer to what the Government orders, which has already given up after months of struggle so that all the Autonomous Communities act in unison.

This weekend begins the most complex season (102 clubs) and complicated in history for non-professional football whose protocol is light years away from that established by LaLiga, which is much safer. The RFEF, at the request of the Ministry of Health, does not oblige each club to undergo a PCR test. The competition will begin and it will not be known if there are positives in the changing rooms. The CSD cannot prohibit the entrance of the public, but it does recommend it. There his power ends. Everything is in the hands of each Community, as established in the RFEF Circular. “The RFEF understands that each club that acts as host in the matches of the official competitions at the state level must be the one that regulates the influx of the public based on the health regulations issued in the territory where it is located”, it is written. And the modest clubs, affected by the crisis, if they are given permission, will try to alleviate their accounts with the entry of a small percentage of followers. In the Madrid’s community the maximum capacity is 50% of the capacity of the venue up to 600 spectators. In the Basque Country, 60% of the capacity is authorized up to 1,000 people; the Junta de Andalucía, 65% until reaching 800 viewers … and so each with its own rules.

In Galicia, Riazor, the stadium of Deportivo de la Coruña, has a capacity of almost 33,000 spectators but the regional government allows a maximum of 5,000. The New Archangel, with almost 22,000 seats, will be able to accommodate 800 spectators. Less in proportion than Deportivo de la Coruña? Yes, but it will be 800 more than in any First or Second Division match that same weekend or 6,200 less than in Badajoz, where the Autonomous Government has allowed 50% of the capacity and up to 7,000 spectators. Welcome to the Independent Republic of Spanish Soccer.

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LaLiga cannot be stopped once again due to covid-19: Javier Tebas

Editorial Mediotiempo

Mexico City / 11.10.2020 19:30:21

The Spanish league cannot be stopped again by the pandemic of coronavirus, so pointed out Javier Tebas, President of LaLiga, as fear an economic crisis beyond the health crisis.

We would be very sorry if it stops once again because otherwise we would go from a health problem to an economic crisis, which is equally dangerous. We have managed to solve it a bit, “said Tebas at the Sports Festival, organized by the Italian newspaper La Gazzetta dello Sport.

Tebas assured that the necessary measures have been taken so that the season does not have to stop again.

“The first strategy was to take care of the sports field, but also of the entire sector. If the games were not played, dozens of jobs would be at stake. The second strategy is the so-called bubble. Each player has their own protocols to follow. This every time you return from a trip must be checked through a test. It is the only way to avoid contagion within that bubble in which we live. It is very important that no one enters that bubble, since the locker room is the most dangerous place in terms of contagion ”.

Last season it was easier to finish the championship, as UEFA had suspended the Champions League, but now we will not, then it will be more difficult. LaLiga is much more attentive now to what is happening than at the end of last season, “he said.

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