Barcelona Face Filing For Bankruptcy
La Liga giants Barcelona is currently facing the risk of bankruptcy unless the club can agree on a fresh round of pay cuts. Most players of the club have already accepted a wage decrease. They accepted to take as much as 70 per cent in the spring amid the onset of the coronavirus pandemic.
But the club’s finances continue to spiral out of control with losses of about £88million. The financial report was announced early last month. The Debt levels hit £443m with revenue down by £122.5m leaving the Spanish side lightyears from their pre-pandemic boasts of topping one billion euros in annual income.
The situation has drawn the club back to the negotiating table with a fresh round of pay cuts forecast. According to Catalan radio station RAC1, Barca has until Thursday to reach a settlement. If they fail to get a cut of £171m from their wage bill, they be bankrupte.
The Blaugrana had the first shock when Lionel Messi pushed to leave the club during the summer transfer. The threat of a legal battle persuaded the Argentine to stay although his contract expires in June. It was gathered that he is said to be owed a large bonus payment.
Barcelona recently announced contract extensions for Gerard Pique, Frenkie de Jong, Clement Lenglet and Marc-Andre ter Stegen. Pique accepted a 50 per cent pay cut when signing on, with the other three losing 30 per cent of their wage.
After the resignation of club president Josep Maria Bartomeu, a new board helmed by Carles Tusquets is in charge until next year’s elections. He recently explained that the pandemic’s impact on ticket and merchandise sales have ravaged Barcelona’s finances.
“Our main concern is the club’s finances. “The pandemic has affected Barcelona particularly hard. “The club depends on tourism and now, all of that income has been lost.
“The situation is not very comfortable, we have to take on the ideas of the previous board to find a way of addressing the problems we are facing.”