Barca’s financial situation explained in a way for the ordinary fan to understand & how we can register players despite exceeding the salary cap 🤝
When Laporta took over he announced that we had much debt. Around €700m of this were short term debt. Short term debt is debt that the club have to pay in the near future.
Barca obviously lacked money to pay the short term debt. They fixed this be refinancing the debt by taking another loan. Barca took a loan of 525 million euros from a company called Goldman Sachs. As Laporta said: “the loan is needed to give the club breathing space.”
This allowed Barca to pay of the short term debt. In December the club took another loan from Goldman Sachs. This time on €1.5 billion. Why? Because of a new project called Espai Barca.
Espai Barca is the renovation of Camp Nou. The renovation of Camp Nou will increase the capacity & will generate a lot of money. It’s an investment.
The loan from Goldman Sachs is long term. We won’t start repaying them until the renovation is over. We will also have 25 years to pay the debt. The new stadium will generate a lot of money itself. Again: Investment.
Over to how we can register players.
Over to how we can register players.
Masa salarial: La Liga’s rules to secure a healthy economy. 70% of the clubs income defines the salary cap for the club. Due to high debt & loss in income our salary cap is €97.9m. Seven times less than Real Madrid’s.
We still exceed this salary cap, as several players had contracts La Liga can’t force the clubs to break. This should mean we wouldn’t be able to make any signings? No, there are some exceptions.
1. One to four rule: If we sell a player/reduce salary. 25% of the income can be used on registering a player.
2. One to two rule: If we sell or reduce the salary of a player that occupies more than 5% of our total salary budget, 50% can be used to register a new player.
2. One to two rule: If we sell or reduce the salary of a player that occupies more than 5% of our total salary budget, 50% can be used to register a new player.
In other words, registering players is still possible. It’s just much more time consuming & difficult. And yes, we do so following the rules.
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