Interesting to see if Monchi can get Sevilla challenging while he rebuilds the side.
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Barca Fucked?
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They have a net spend of £-117m not including agent fees and signing on bonuses for free agents. Doing the total opposite of what Real did. Wonder what their wage bill is now?
Surely they have to be thinking that some rich cunt is going to bail them out?
You mean apart from last year when they had the exact same problem
The beginning of their demise, the start of our rise
How have they funded those deals?
Swiss Ramble did a very long and detailed thread on this. The start of the thread can be found here. Below are some extracts:
That makes their situation, and transfers, a lot more comprehensible. Cheers Binny !
However it is clearly a case of “short-term gain, long-term pain" as mentioned. Selling 10% of their La Liga TV rights (excluding Champions League) for €207.5m to US investment firm Sixth Street for 25 years. Based on current €166m revenue, that would mean annual payment of €16.6m, so total payment of €414m, and selling 49.9% of BLM (if it comes to pass) is insanity in terms of lost future revenue.
The TV rights deal especially. That could easily add up to handing over €1B, to 6th Street, with inflation taken into account.
Maybe @Beamrider has some comments to make?
It is short-termism. I'm guessing Laporta et al don't want to be slow and steady management, they want to be the guys that took Barcelona back to the top.
My understanding is that all this represents a massive gamble to get them there at which point they're banking on more financial opportunities to justify the expenditure / risk taken.
The issue is that this is likely a one off. You can only sell off the family silverware once.
If this doesn't work out for them then they really are in the shit.
My understanding is that all this represents a massive gamble to get them there at which point they're banking on more financial opportunities to justify the expenditure / risk taken.
The issue is that this is likely a one off. You can only sell off the family silverware once.
If this doesn't work out for them then they really are in the shit.
I've not run the numbers on these deals, partly because I don't know how much they're worth, but leaving aside the economics I think what Barca have done is quite clever from an accounting perspective.
Beforehand, they had a ton of debt on their balance sheet and in their last published accounts they paid over €40m in interest. Obviously they will also, at some point, need to repay the balance of the debt (or else they will need to refinance it) because it will fall due for payment.
What they have done by "selling" a share of their future media income is essentially to replace (some of) their existing debt balances with a longer term agreement. What I'm not clear on is how that transaction will be accounted for. But I think they way they have structured it, it could be treated as creating a one-off profit up-front, whilst reducing future revenues from media (so it wouldn't be treated as a new debt balance). So if they use some of the proceeds to repay their debt, their balance sheet will look a lot healthier and the up-front gain can potentially give them some shelter against failing FFP (at least the UEFA definition, as I don't really understand how the Spanish rules work). I stress "if" because this is Barca we're talking about.
Obviously the deal will impact their future spending, but the kind of numbers that Swiss Ramble mentions are not that significant in the grand scheme of things. They are "selling the family silver", but only a proportion of it, and there's a good chance they'll push for a structure for a future European Super League that protects them against that cost (either by carving it out of what they pay to Sixth Street, or by insisting they're paid a premium to join the ESL that will cover that cost). So there's the irresponsibility element we have come to expect from them - they're likely still gambling on a future ESL to make things better for them.
In the Premier League, there are a lot of clubs who have borrowed against their future media revenue, and these transactions are treated as loans (basically the corporate equivalent of a payday loan). What Barca are doing looks different. On the face of it, it looks like a clever solution, but the fact that they've then gone out and spent money left right and centre shows that they still haven't learned their lesson and I suspect they'll find a way of digging themselves back into a hole some time soon.
I don't really see how selling a fair portion of future revenues is anything more than a massive gamble.
It's like borrowing against your house and trotting off to a casino. Yeah, you could win big. But if you don't, you're fucked.
It's like borrowing against your house and trotting off to a casino. Yeah, you could win big. But if you don't, you're fucked.
Awesome. Thanks for that mate. That makes it a whole lot clearer - at least in terms of what potentially could happen on the basis of these family silver sales.
Looks like they are still going on. As long as they can get back to pre-covid income level, they will be fine I think - even if they don't win La Liga or CL. I think that's partly what gives them the confidence to take the risk.
and he's a fucking thundercunt
I’ve heard the counter argument that it’s just as big a risk not to do this and fade into irrelevance. Apparently patience and a good transfer strategy isn’t an option for Barcelona.
Despite everything the squad looks strong though doesn’t it? Not sure about having two 33 year olds up front on 3/4 year contracts, but they’re not on mega wages are they?
Despite everything the squad looks strong though doesn’t it? Not sure about having two 33 year olds up front on 3/4 year contracts, but they’re not on mega wages are they?
I’d love a bit of transfer nonsense at City, although I’m sure a third party would kindly step in and donate enough money to have Bernardo change his mind
Kinda expected when he only signed a 2 year contact when he joined from Lyon on bosman transfer.
Barcelona hire a Dutch coach: “let’s buy every Dutch player available.” Barcelona hire a Spaniard: “sell all these useless Dutch bastards.” Real Madrid went through a similar phase a few years back (even with a non-Dutch coach). Funny how that works.
Cf. United
It's not the first time for Barca. They did it with Van Gaal too, like 20 years ago. He basically brought his old Ajax team to Barca
Yeah, but many of those players stayed at Barca for many years I think - I’m talking about the quick clear-out after the “Dutch craze.” They almost bought Wijnaldum too… Just strange and irrational decision-making for me.
Your wish is my command (in lieu of 737Max)
Pjanic's (and backup keeper Neto's) wages (apparently gross, before tax) 😱
[article]Super agent Pini Zahavi has secured a bumper commission for Robert Lewandowski's move from Bayern Munich to Barcelona.
The Athletic says Zahavi has walked away from the deal with a massive €10m payoff.
Lewandowski's move from Bayern cost Barca a €45m fee plus €5m in bonuses.
Zahavi had always assured Barca president Joan Laporta that if he was prepared to pay at least €40m, then he would do everything he could to place Lewandowski to the Nou Camp.
Lewandowski, although he has already played three games with Barça on their US tour, will be presented this Friday at the Camp Nou, which will be open to the public.[/article]
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