Ferran Reverter,CEO of Barcelona, has unraveled the more than complicated economic situation that the board led by Joan Laporta. The CEO has alerted this Wednesday, in the presentation of the due diligence, of the seriousness of the situation that they encountered when they arrived at the entity. “In March we found ourselves with negative net worth, if it were an SA it would be an accounting bankruptcy that would entail the dissolution”, that was the forceful start To reverse the appearance. Yes, she has made it very clear that it is not on her agenda to become a Sports Anniversary Society. “There was a disastrous management, total improvisation, they jump into a Espai Bara, buying players in a crazy way …”.
There was a disastrous management, total improvisation, they launched into a Espai Bara, the purchase of players in a crazy way …
In addition, he has revealed that they have found activities in which they want to deepen because they do not see it clearly. “We have made a Forensic of the Bara Space, purchasing department and player contracts. It is done to look for evidence of irregularities in the management of the club. It will end in the next few days, maximum weeks, “he said. Once they have this document, they will see with the legal services if there has been any crime.” I don’t know if the worst is yet to come to light, the only thing I do is What do I explain after the due diligence. Documentation is missing and they will have to say if there is criminal evidence. “
In March we find negative net worth, if it were an SA it would be an accounting bankruptcy that would mean the dissolution
In the x-ray you have taken To reverse It has also explained that there was a null operating cash flow that made it difficult for them to pay their salaries, there was a debt and future commitments of 1.35 billion euros that needed an urgent refinancing and the facilities were very dilapidated. In fact, he has reported that they could not have opened the Camp Nou at the end of last season because there were more than 900 pathologies in the stadium, 124 of them urgent. “Since April 2021, Barcelona had no cash to continue operating,” he asserted.
To reverse It has also highlighted non-compliance with commitments with banks, ratios of the League, UEFA and Statutes. “This limited the registration of players and the project Espai Bara it was undervalued and seriously lacking. “He revealed that they have found payments to journalists.
Since April 2021, Barcelona had no cash to continue operating
Increase in expenses
The CEO of the Barcleona has reported a large growth in spending. “During this period (2016 to 2020), income grew 30% and expenses soared 55%. Only he had to prepare for the biggest project in his history and he lost money, “he explained. This is due to the increase in the wage bill by 61 percent, management expenses, by 56 percent, financial expenses growing and the covid impact, which is rated at 43 kilos in 2019-20 and 65, until March 2021. In a different vein, he explained the operation Arthur-Pjanic cost the club about 8.5 million.
We have found invoices that show that there was payment to journalists
Bara signed players without knowing if he could pay them
As for the wage bill, it was 471 million from 2017-18 and the current one, 793. But, according to the CEOIf they had followed the same line, this would be 835 million euros, 108 percent. This has occurred because the Barcelona it had three of the five most expensive players in history, a policy of rising salaries, and commissions from non-traditional intermediaries amounting to 48 million. “The normal is 5 or 10, but never between 20 and 33 percent,” he revealed.
“The consequences of all of them have been an unsustainable sports model, a skyrocketing salary mass, an increase in debt and difficulty in getting players out.” In addition, he has referred to the inverted pyramid, with veteran footballers with long and young contracts, with very short ties.
The normal in commissions are 5 or 10, but never between 20 and 33 percent
As for mismanagement, he gave as an example the signing of Griezmann, who realized that they could not sign him the same night he was going to sign and looked for a fund to do a ‘factoring’, which has opening commissions. Coutinho, for its part, it cost 16.6 million more. “Players were bought without knowing if they could pay,” he revealed. “There was no planning.”
There is an increase in debt between 2017 and March 2021 of more than 500 million that never went through the Assembly
To reverse He has also referred to the issue of slicing invoices and has explained that it occurs for two reasons: to avoid control (like I3Ventures or Espai Bara) and also for an operational issue.
“There is an increase in debt between 2017 and March 2021 of more than 500 million that never went through the Assembly“, he asserted.” The net financial debt has increased from June 30, 2018 to March 2021 by 514 kilos, placing it at 673. For two and a half years the Only it only generated a million euros to pay the entire investment, all that was done was on credit. “
To reverse has explained that they have made a viability plan and, therefore, have obtained the credit. They have also implemented very radical savings measures such as the spending of players to 155 million, they have changed the financial structure that has gone from short to long term. They have achieved a loan of 595 million euros at an average interest rate of 1.98 percent over 10 years … They have also fixed the facilities with an investment of 1.8 million euros, although they would need 23 and have changed the training camps Sport City. “The number 7 can cause injuries. We have changed the 4,5 and 6.” Finally, they have reviewed and updated the project and formulated a new financing proposal for the Assembly to October 17 for the Espai Bara.