FC Barcelona hopes to put an end to its financial bleeding this year and close the season on a positive note. Specifically, with a net profit of five million euros, according to the budget that it has made public today and that it will present at the shareholders’ meeting to be held on October 17, and in which the result for the 2020-2020 financial year will also be settled. 2021, with a loss of 487 million.
This optimistic scenario, taking into account the last two seasons, is based on a recovery of the income lost due to the pandemic, thanks above all to the return of the public to the stadiums. The board of directors chaired by Joan Laporta speaks of a turnover of 765 million, 21% more than the previous one, in which revenues did not exceed 631 million. As the club recalls, this figure is 24% below what was budgeted by the previous board chaired by Josep María Bartomeu.
In addition to higher box office receipts, Barcelona, which speaks of a “complex path towards budget balance”, has a significant increase in commercial income thanks to the reopening of its stores. For this season, the club has budgeted operating expenses of 784 million, after reducing the salaries of its sports teams by 31%. “The rest of the expenses show increases as a result of the increase in costs derived from the reopening of facilities and the costs necessary to start up all the match operations,” says the club. Last season, operating costs climbed to a record 1,136 million. Laporta’s management team has included in this figure “fiscal, legal, labor and delinquency provisions, as a result of the recognition of certain liabilities that had not been recognized, and following the recommendations established in the Due Diligence”, which the CEO Ferrán Reverter will present next week.
In addition, the club has impaired the book value of some of its players “who were overvalued.”
With all this, the operating result for this season will continue to be negative at 19 million, although it hopes to compensate this deficit with a financial result of 23 million and, in this way, reach five million net profit.
Net debt of 680 million
Regarding the accounts closed on June 30 of this year, Barcelona recognizes a net debt of 680 million euros. Subtracting investments of 122 million in the Espai Barça, the club speaks of an adjusted debt of 558 million, which causes a debt/ebitda ratio that breaches the limit of 2 times set by its creditors. Its bank debt reaches 533 million.
At the end of the season it had a cash of 63 million and a negative net worth of 451 million due to the losses of the year. Being a sports company and not governed by the law of capital companies, this does not imply its entry into cause of dissolution.