Despite having billions in debt, how is Barcelona buying new players?

By Thumper
5 Min Read

Barcelona is ruling the transfer market this summer transfer in 2022. Frank Kessie, Raphinha, Robert Lewandowski, Jules kunde, Dembele, andreas Christensen are the new stars of Camp Nou. Still, the transfers market is open, and Barcelona is trying to get more players in this summer transfer. Now the question arises, how does Barca manage the transfer market bearing debt of around 1.3 billion Euros? How a debt-ridden club gets through an eye-watering transfer season may raise your eyebrows.

How does Barca deal with the new players spending millions of euros?

Barcelona has enough money to sign new players. They sign Raphinha for 58 million euros plus 9 million add-ons. They spend 45 million euros plus 5 million add-ons for Lewandowski. And Also able to contract other players. But that does not mean that they can be included in the squad. And to get out of the minus book, Barca has to sell players and enrich the source of income. Barca expects 200 million euros from transfer fees this season.

Fair play rules of La Li Ga

The fair play rule is known as ‘Limite Salary’.

At the start of each season, La Liga authorities decide how much money a club can spend on player wages. This figure is based on the club’s annual net income, player transfer fees, amortization of salary bonuses, and other expenses. Barca’s salary cap last season was 144 million. In other words, Bursa can not spend extra money on salary, but the salary and other expenses should be reduced at least to come out of the minus account. If Barcelona cannot balance the financial situation within a certain period, they will not be able to register any new players.

The action was taken by Barca to recover from the financial crisis

Barca has already raised money to recover from this financial crisis. It is called an economic lever.

First Economic Lever

Barcelona has sold 10% of its domestic TV assets to an American company for €207 million. With this money, they signed new players. They are considering selling another 15% for 400 million euros to the same company.

Second Economic Lever

Barcelona is considering selling 49.5% of its BLM for 300 million euros.

At this time, the spending proportion of Barca is 1:4. That means you can spend 1 euro over 4 euros earning. If the second lever starts, there can be a balance of spending proportion of 1:1

But to reach this situation, a third lever can also be activated. Barca, however, has signed a deal with Spotify until the 2025-26 season. Barca will get 280-300 million in these four years.

Barca’s current financial crisis

Overpaid players are now a big headache for Barca. Especially Frankie De Jong. He has a salary arrears of 17 million euros. In addition, if he does not leave Barca, his potential income from the club will be 88.7 million euros.

Barca spent 560 million euros on wages last season, which will be reduced to 400 million this season. So now everything depends on economic levers and player transfers to other clubs.

Barca’s way out of the Financial Crisis

If Barca can show an Income statement for 500 million euros, they can register new signings. Hopefully, after the economic lever, Barca can show an Income statement of 607 million euros. But a remaining deficit of last season plus pay structure, Barca has to show 704 million euros as the income target. Only they will be able to show their financial ability.

Finally, to sort out all these problems of wages, signings, pay structure, and debt, Barcelona has to win the Champions League Title, which is the only way.

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