Barcelona have been sinking deep in$580m debt. The financial situation in the La Liga giants has never been worse, according to Spanish media. They have continuously singled out the horrible work of the current President, Josep Maria Bartomeu which has brought the club at the brink of bankruptcy.
Spanish economistMarc Ciria, who once collaboratedwith the Catalansā ex-chief, Joan Laporta,has confirmed thatthefinancial situation atBarcelona is very alarming. In fact, he has revealed that Barca have taken out a loan from the Americanmultinational investment bank, Goldman Sachs, which would aid in paying their playersā wages.
āGoldman Sachs is an investment bank, not a money loan bank. The appearance ofGoldman Sachsmeans thatBarcelonahas not been able to go to national entities to increase their debt. The reason is obvious: the club owes almost $580m to them in debt,ā Ciria was quoted as saying by Marca.
āThe club is using the 30-year debt for Espai Barca, of which it is clearly inflating the final cost result, to pay the player salaries for this year. And Goldman Sachs already thinks it is good because it is charging interest between 3 and 4 percent and if Barcelona does not pay then there will be consequences.
āThe debt that needs to be paid in the short term is 77 percent. That means that there is no money to pay the payroll or some providers. So, the increase in debt has been to pay the day-to-day of the club, not the Espai Barca.ā
Coronavirus effect
Due to low revenue and product sales,no stadium ticket sales, and the financial crisis caused by Covid-19, many clubs have been financially hit in 2020. Not even big soccer clubs like Barcelona, Real Madrid, or even financial powerhouses like Manchester City or PSG have been immune, in spite of their spending.
Just for 2019-20, Barca have reported a loss of 114m. Compared to other top teams, Juventus, for example, have reported $83min losses andManchester United, 130m.
