Barcelona CEO Ferran Reverter said the club “dissolved” in April if it was a public limited company (PLC) after it was on the verge of bankruptcy by a previous board of directors.
Reverter branded former President Josep Maria Bartomeu’s club operations as “disastrous,” and he and his directors signed tight players, offered high wages, and paid journalists. Blame.
Bartomeu resigned in October 2020 amid growing dissatisfaction among supporters and eventually resigned Replaced by Joan Laporta in March After the election process was delayed due to a pandemic.
After Laporta’s board scrutinized the club’s accounts, Riverter revealed the club’s financial predicament at a press conference in Camp Nou Wednesday.
“When I came in March of this year, I found a club that went bankrupt technically. If it was a PLC, [the club] It would have been disbanded. “
“There was no cash flow and it was difficult to pay my salary. Debt and future debt amounted to € 1.35 billion and refinancing was urgent.”
Reverter finds it difficult to perform due diligence and keep track of everything that happened behind the scenes, as the previous board deleted emails every 90 days and sometimes even used a computer. I said it was.
He also elaborated on how “deteriorated training facilities” and “Camp Nou in an unstable situation” needed an immediate upgrade after Laporta was elected earlier this year.
But he said most of Barca’s financial problems were overspending on players and wages.
“Between 2016 and 2020, salaries increased by 61%, which is Juventus“The entire salary caused by new signatures and player updates,” said Riverter.
“Signing was done at a high price by signing a contract that included new reward concepts such as loyalty bonuses and termination premiums to increase future spending.
“If the same team were to be maintained this season, salaries would have reached € 835 million, 108% above recurring revenue, and these operations have had significant extraordinary brokerage costs over the past few years. I brought it. “
Reverter went one step further and criticized the club for signing players who couldn’t afford it.
“They weren’t thinking about paying the players,” he added. “”[Antoine] Griezmann was signed in a hurry. They realized they couldn’t pay him and needed a credit of € 85 million to make the deal. “
Forensic research has been commissioned to detect other frauds that may occur in the club’s previous management, such as whether payments to journalists are legitimate.
Reverter also downplayed the effects of the coronavirus, saying that Barca would have recorded a loss of € 390 million in the 2020-21 season, even without the effects of the pandemic. The club’s actual losses total € 481 million.
Therefore, Barca had to make a sacrifice this summer to guarantee the future of the club. Rich man Lionel Messi When Griezmann both left the clubA total of € 155 million was removed from wage claims, while other players agreed to pay the cuts.
The Catalan club also acquired a credit line with Goldman Sachs, worth over € 500 million, and was repaid over a 10-year interest rate of 1.98%.
These measures, along with the deadline transfer Emerson Royal When Ilaix MoribaThis means that the club is now in a position to renew some of the talented youth, such as winger. Ansu Fati And midfielder PedriAlso consider signing in January.
“We haven’t crossed the hill yet. We still need to reduce outbound calls, but we can sign and update. [players]”Reverter said.
“Pedri and Anse’s contract renewal is on track and players are sent off. [at the end of August] We have generated over € 20 million for each LaLiga fair play rule, so you can sign if you think you need it. “
Reverter hopes the club will be in a very strong position in the transfer market by next summer.
Forced to leave Messi, Riverter began the due diligence process in July, revealing the full picture of the club’s financial problems and Messi knowing if the club can afford it. “I couldn’t wait until August 31st,” he said. Register his new contract with LaLiga.
Without Messi, Riverter said the club would negotiate some important deals, including sponsoring new shirts, “the Barca brand remains strong,” and hoped the club would “increase revenue” in the future. We guaranteed that we were doing so and eased concerns about loss of revenue with our sponsors.
– Soccer Sports
Barcelona would have “dissolved” in April if there were a public company during the financial crisis
https://www.espn.com/soccer/barcelona-espbarcelona/story/4492296/barcelona-would-have-been-dissolved-in-april-if-public-company-amid-financial-crisis-ceo Barcelona would have “dissolved” in April if there were a public company during the financial crisis