On Wednesday 6th October, FC Barcelona publicly presented its accounts for the end of the 2020/21 financial year, which will have to be submitted to the approval of the delegate members at the Ordinary General Assembly convened for 17 October. Barcelona recorded losses of €481million (Ksh 61 billion).
After a tumultuous year, which ended with Lionel Messi leaving the club as the Catalans could not afford his contract, Barca's revenue was €631m. This fell well below the €828m set in the budget. With expenditure of a record €1.136billion, up from €955m, Barca posted an operating loss of €505m, a net loss of €555m and a post-tax loss of €481m.
The club - believed to be over £1billion in debt - have asked a host of big-earning stars to take pay-cuts - with the likes of Marc-Andre ter Stegen, Gerard Pique and Sergio Busquets accepting. That allowed them to complete the free transfers of Sergio Aguero, Eric Garcia and Memphis Depay after it was feared deals would collapse. The club also cited the loss of match-day income as a key reason for their shortcomings.
Barcelona had estimated they would rake in £704m in revenue last season - but only managed to scrape together £537m - 24 per cent under budget. The Spanish giants claimed the Nou Camp was the 'most-affected area' - seeing an 84 percent loss in revenue compared to the season before due to coronavirus. Barcelona even saw a season-on-season decrease in TV revenue - down 14 per cent to just £240m.
They claim the 'postponement of the 2019-20 LaLiga and Champions League meant income from television broadcasts of the matches played in July and August was transferred to the accounts for the 2020-21 season.' Expenses also rose by 19 per cent - to a record high £967m - compared to 2019-20, with player wages a huge chunk of that. Barcelona have since seen top-earner Messi - believed to be on around £1m per week - leave, with Antoine Griezmann's £280,000-a-week salary also offloaded in the summer after he re-joined Atletico Madrid.
The most affected area in terms of loss of revenue has been the Stadium, which has made 25 million in revenue (-84% compared to the previous year). The estimated impact of Covid-19 is 181 million, mainly due to the inability to open both the stadium and the other club facilities. The Commercial section achieved 268 million euros of revenue (-10% compared to the 2019/20 season) but the estimated loss of revenue is 56 million and comes mainly from the closure of stores (42 million), as well as the impossibility of going on any tours last summer.
Operating expenses have increased by 19% compared to the previous season, from 955 million to 1,136 million euros, an all-time record figure at the club. As for non-sports salaries, these are in line with the previous season, with a slight reduction of 1 million euros (-2%). Finally, the Other Expenses chapter witnessed an increase by 281%. On the one hand, there has been an increase in tax, legal, labour and arrears provisions, as a result of the recognition of certain liabilities that had not been recognized.
While revenue failed to match the level expected in the budget for the previous campaign, costs were also significantly higher. Barca had hoped to run a profit of €1m but clearly fell well short of that. The club's net debt now stands at €680m while its liabilities stand at €1.35 billion as of March 2021.
President Joan Laporta and his board have constantly blamed the previous administration for the mess the club finds itself in and have already taken immediate action to stabilise the situation. However, there will be no quick fix for Barcelona, whose financial position looks as grim as ever.