How Barcelona Is Signing Players Amid Their Financial Crisis?

Barcelona as we know it is not as financially stable as we knew it. Honestly, it is quite broke as it stands now. This all started from the signing of players under very high wages with huge transfer fees instead of blending in many home grown talents. Now, they have released most of these high-earning players and are looking to completely restructure the club causing them to bring in a new board.

The previous board had players maxed out contracts and it bleed the club dry. Imagine your wage bill being 110% of your income? Barca makes a lot of money, so you can only imagine how huge the wages are. Umtiti was on about 12m , Phillipe Coutinho half a million in a week , over 600K for Griezman , Trincao 130k , Roberto 12m , Pique over 20m, and Luis Suarez over 500k. That’s not a sustainable wage structure. They had a wage bill twice of that of Bayern when we got spanked 8-2.

That era now seems to be over. Barca has now partnered with Spotify for some undisclosed financial grants and has also leveraged their tv rights as well. While this is a temporal solution to their current crisis, it carries some significant risks as well.

Tv rights bring in a significant sum of about 16m per year so it is not surprising that they sold that for instant liquidity. I think they did it not just to sign players but to also keep the stocks of the team up and gain some much needed income. This is a serious risk but absolutely required based on the circumstances. I mean, they had a front 3 of Abde , Luuk De Jong and Ferran Jutgla. Wasn’t it sad ?

There’s even a buyback clause for them plus if the team performs well , there will be increase in sponsorship funds that leads to an increase in revenue and they can become financially stable. I think the pundits just like to exaggerate at times.

I just hope they can bounce back well and not turn into AC Milan which has struggled for so many years in the past from a similar situation.

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