Barcelona have announced a net loss of EUR 97 million (US $ 114 million) for the 2019-20 season after their debt more than doubled, partly due to the financial impact of the COVID-19 pandemic.
The Blaugrana released their financial results in a statement on Monday and it wasn’t good read for the club’s fans.
Barca announced that they had forecast sales of an estimated € 1.059 billion for the last season if the pandemic hadn’t occurred, but their income was actually € 855 million.
The club suffered a significant loss of match day revenue as it ended the campaign without fans at Camp Nou. A reduction in tourism also had an impact on its finances as fewer visitors came to the stadium and official club shops.
The Barcelona accounts as of June 30, 2019 had a debt of EUR 217 million, which rose to EUR 488 million in part due to Covid-19 and an investment of EUR 109 million in the Espai Barca project to reorganize the company. Camp Nou has more than doubled EUR.
The association “also stressed the importance of keeping the salary / income ratio within the limits recommended by the various sports federations, and therefore stressed the work being done in this department and the next steps that need to be taken to achieve this goal achievable given the significant drop in sales that the club and sector are seeing. “
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Barca actively dumped a number of first-team stars this summer in an attempt to cut their wage bills.
Luis Suarez and Arturo Vidal were allowed to move to Atletico Madrid and Inter Milan respectively despite having a year left, while Ivan Rakitic returned to Seville for an entry fee of just € 1.5m.
Arthur Melo, Nelson Semedo, Carles Perez and Marc Cucurella are also among the departures this summer.
In Arthur’s case, it was sold to Juventus for € 72 million, while Miralem Pjanic went the other way for a € 60 million fee, excluding the € 10 million and € 5 million that could be paid in potential add-ons.
According to ESPN, the deal benefited both clubs financially as they were able to put the full proceeds from the deals into their books before the fiscal year ended in late June. However, the expenses are written off over the duration of the player’s contracts.
Barcelona are hoping to regain their La Liga title this season after losing to Real Madrid last season. The Catalan giants only scored 82 points last season, the lowest total since 2007/08.
They’re also hoping for success in the UEFA Champions League, a competition they haven’t won since 2015 after being humiliated 8-2 in Bayern Munich’s one-legged quarter-finals in August.