This Is How Barcelona Avoided Complete Bankruptcy

Barcelona’s infamous financial situation has been the talk of the football world for a few years now. Starting from the 2020/21 season, the Spanish club was on the path to ceasing to exist. Player contracts, transfers, loss of revenue, and selling of organization rights all played a part in how Barcelona avoided bankruptcy. In this article, you’ll find out everything you need to know about the Catalan club’s financial situation.

The previous two seasons haven’t been kind to Barcelona. Their debt was over €1 billion and many things seemed hopeless. The series of events that followed saw Lionel Messi leave, and dozens of new signings and arrivals in the matter of two years alone. Yet, the Catalans are still here, and they most likely closed one of the most impressive summer transfer windows ever. Find out how Barcelona avoided bankruptcy and what the future holds for them.

How Lionel Messi started an avalanche

Lionel Messi’s Barcelona departure was one of the greatest shocks the football world has ever experienced. We’re bringing up this topic because it’s as relevant today as it was then. Messi was 34 at the time and was arguably the greatest player that ever stepped foot in Camp Nou. Everything was built around him. And his departure complicated things even further with the signing of Sergio Aguero.

Messi’s contract expired at the end of the 2020/21 season and the club failed to reach an agreement with the superstar. At the time, Barcelona was €1.35 billion in debt due to years of overspending. According to multiple reports, Messi was earning €565.000 per week before his departure, which made him the highest-paid athlete in the world. Messi was set to take a 50% pay cut but the deal fell apart in the last hours.

Recovery and how Barcelona avoided bankruptcy

After the 2020/21 season, the club posted a report about their losses, which were almost €500 million in that season alone. Online sportsbook news in Spain said that it was impossible to make things right within one season. Because of LaLiga’s financial rules, the team’s spending cap was reduced from €600 million to €100 million after just one season. Messi’s reduced contract would’ve been impossible anyway. After a bumpy 2021/22 season, things have slowly started to improve.

The Spotify sponsorship

The club ended its long relationship with Rakuten earlier this year. This was one of the reasons why Barcelona avoided total bankruptcy. The new sponsorship deal with Spotify is worth €280 million over three years. It was evident that this would be beneficial for the Catalans as the new deal paid almost 60% more than the one with Rakuten.

The Spotify deal also made available the recruitment of Ferran Torres for €55 million. But there were other, more clever transfers as well. Barcelona added Aubameyang for free, Adama Traoré on loan, and Dani Alves returned as well. These were all short-term contracts as we all know now. Initially, these players played a big role in the club’s 2nd place LaLiga finish and the return to the Champions League.

TV rights and unforeseen incomes

Last season, Barcelona sold 10% of their television rights for men’s LaLiga matches. As reported in the official statements, this brought in an income of €266 million. This adds to the initial operating income of €750 million, which was a huge improvement from the 2020/21 season. Within one season, the club recovered over €100 million in debt. The final number, however, still stands at minus €353 million as of June 2022.

The most impressive transfer window of the year despite apparent Barcelona bankruptcy

Before their signings, 20Bet Sportsbook had odds for the potential destination of Barcelona’s current squad. The Catalans splashed a total of €153 million to bring in Raphinha, Jules Koundé, and Robert Lewandowski during the summer. Other big names, such as Franck Kessié, Andreas Christensen, Héctor Bellerin, and Marcos Alonso came for free but their contracts are still there. So how was all of this possible, especially by Barcelona who barely avoided bankruptcy?

Remember that 10% of TV rights? The club sold a further 25% of those rights for around €350 million, and there’s a possibility to sell even more in the future. In August, the Spanish giants also sold 24.5% of Barca Studios for another €100 million. The club released a lot of players but still kept Frenkie de Jong and Memphis Depay, two of their biggest what-ifs this summer. As seen in earlier reports, Barcelona successfully registered all of their summer signings. Check out the best LaLiga signings of August to find out more about some of these players.

Setting up for the future

Barcelona signed further the sale of further assets at the start of the 2022/23 season. They sold 49% of their stake and the deal exploits the club’s sale of metaverses, NFTs, and tokens. This brought in another €200 million in gross revenue. Earlier this month, vice president Romeu presented the budget for the season. The operating income is set to be at a staggering €1.255 billion for this season alone.

This report states that the club’s profit at the end of the season will be around €274 million. If Barcelona achieve this, their debt would decrease to around €80 million. At this rate, the club is set to make a clear profit two years from now. Containing the athlete’s payroll will be the biggest challenge for the club. This is how Barcelona avoided bankruptcy and are on the right path towards recovery. Make sure to stay updated on the online sportsbook news in Spain, which cover everything Barca-related.

Click here to visit the 20BET Sportsbook