Question: Why is Barcelona in financial trouble?

Barca recently confirmed losses for the 2020-21 season of €481m. … Sources told ESPN that was down to president Joan Laporta, who was elected in March, writing off several assets as part of last year’s accounts, including amortisation payments due on certain players, to help the club return a profit this season.

Why is Barcelona in so much debt?

Barcelona’s debt was caused by overspending on wages and transfer fees. Lionel Messi’s final €555m contract cost approximately €139m per season. That wage plus the other expensive contracts meant Barcelona was spending more than it was earning. With so much money going out, the debt kept racking up.

How bad is Barcelona’s debt?

“Unfortunately, the audit confirmed what we suspected and feared, which is that FC Barcelona has a debt of €1,350 million, has generated losses in the 2020/21 season of €481 million, and has a negative net worth of €451 million.”

Is Barcelona going broke?

Barcelona closed the 2020-21 financial year with 481 million euros ($554 million) in losses “caused by both falling revenues and the inability to contain spending. ” Revenues were at 631 million euros ($728 million), “well below the 828 million euros ($955 million) set in the budget,” the club said.

Is Barcelona in financial crisis?

Barca recently confirmed losses for the 2020-21 season of €481m. … The league’s economic controls demand that figure is around 70%, although Barca’s is even lower this season as they must make amends for recent losses. Gross debt, meanwhile, stands at around €1.4 billion.

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Is PSG a debt?

#PSG have no external debt, but the shareholder loan from QSI increased by €50m to €197m in 2020. Net debt only €125m after taking into consideration €73m cash.

Is Barcelona in trouble?

Barca recently confirmed losses for the 2020-21 season of €481m. … The league’s economic controls demand that figure is around 70%, although Barca’s is even lower this season as they must make amends for recent losses. Gross debt, meanwhile, stands at around €1.4 billion.

Who owns Barcelona?

Barcelona, unlike most of their Champions League rivals, are not privately owned and cannot attract private investment. They are owned by “socios” — registered members and supporters whose votes decide the club’s board of directors and president.

How much is Real Madrid’s debt?

In September 2018, Real Madrid members voted to place the club into a debt of €525million (£450m) to renovate the club’s Santiago Bernabeu stadium, which is ongoing but when complete should generate an additional €120million in income per season.