Finances

News and commentary around Financial Fair Play and revenues of the top teams in Europe.

La Liga, Barcelona, Real Madrid

La Liga Slash Real Madrid and Barcelona’s Wage Bill

El Clasico In USA 2020

Spanish giants Real Madrid and Barcelona will see their wage bill slashed for the coming season as clubs continue to struggle financially post-COVID.

Unlike in other leagues, in Spain, how much a team can pay in wages is determined by the league and not by the individual clubs. As a result, Barcelona’s salary cap for the coming seasons is projected to drop to an almost unimaginable €160 million (unless Laporta can raise around €200 million by selling players and cutting wages).

Real Madrid’s cap will be around €300 million for the coming season. For context, Manchester City’s wage bill last season was around €410 million.

Premier League, Inter Milan, Man Utd., Serie A

Inter Milan Miss Loan Payment To Manchester United

Lukaku Inter MIlan

I wrote earlier this week about the financial troubles that Inter Milan’s Chinese owners are in. Inter owe over €200m in transfer fees to other clubs, with their biggest debt being too Manchester United for the signing of Romelu Lukaku back in 2019.

Inter still owe United over €50m for Lukaku, and it appears that they have failed to make a €5m bonus payment to the Premier League side.

According to Italian outlet Il Corriere dello Sport, that missed payment has triggered a clause in the contract that states that Inter need to pay outstanding fee in full by March 31. The problem is that Inter does not have €50m. They obviously don’t even have €5m!

Inter Milan, Serie A

Inter Milan Owners In Financial Trouble

Inter Milan Transfer Debt

Inter Milan’s owners Suning Group have halted operations at its Chinese football clubs due to financial jeopardy – in a bombshell move which plunges the future of the Serie A giants into uncertainty.

An announcement from the company last week announced that the Chinese Super League champions would no longer be in existence:

“Due to the overlapping of various uncontrollable elements, we have to announce with great regret that Jiangsu will cease operation of teams at all levels while continuing to seek, in a wider scope, interested parties for the future development of the club,” Suning announced on Weibo.

Barcelona, La Liga, Liverpool, Man Utd., Premier League, Real Madrid

Liverpool Aim To Have Highest Revenue In World Football

The Kop Anfield Stadium Liverpool FC

Liverpool are slowly putting the steps in motion to create a long-term blueprint which will see their revenue rival that of Real Madrid and Barcelona.

Often praised for their shrewd business off the field, Liverpool have emerged as one of the fastest growing football clubs in the world when it comes to monetary terms.

And now the Merseyside club have plans in place to emulate the world leaders Madrid and Barca when it comes to boosting profits and maximizing their brand, and aim to storm past Manchester United in the process.

Barcelona, La Liga

Lionel Messi Threatens To Sue Over Contact Leak

Lionel Messi Contract

Lionel Messi is reportedly ready to sue as many as five ‘suspects’ that he believes may have leaked his €555,237,619 Barcelona contract.

The five men in question are former president Josep Maria Bartomeu; former vice-president, Jordi Mestre; CEO Òscar Grau; interim president, Carles Tusquets; and the head of the club’s legal services, Romàn Gómez Ponti.

On Sunday, Spanish newspaper El Mundo dramatically published the full details of the Argentine superstar’s mega-money contract at the Nou Camp.

Messi signed the deal in 2017 and it will end this June when the 33-year-old will be able to leave for nothing.

AC Milan, Arsenal, Barcelona, Chelsea, Juventus, La Liga, Ligue 1, Liverpool, Man City, Man Utd., Premier League, Real Madrid, Serie A

Winners And Losers From January Transfer Window

January Transfer Window

Another January transfer window has come and gone. This one though lacked the fireworks of previous windows due to the ongoing impact that COVID-19 is having on the finances of football clubs around the world.

The lack of money does not mean that some clubs improved themselves during the window, while the lack of activity was a nightmare for some.

Here is a look at the winners and losers from the past month of transfer business

January Transfers Winners
Arsenal
Both on and off the pitch, things are looking a lot rosier at Arsenal now than they did just over a month ago.

Barcelona, La Liga

Is Barcelona On The Edge Of Bankruptcy?

Camp Nou

COVID has hit almost every club in world football, but it has probably hit no club harder than Barcelona. We have been writing for months about the clubs financial situation.

Unfortunately for Barca fans, the financial situation is getting worse not better, according to a report published on Friday in El Confidencial.

It article claims that the Catalan giants have asked companies Goldman Sachs, Allianz, Barings, Amundi and Prudential to delay outstanding debts so that the club can avoid potential insolvency.

The club are said by the report to have requested from the banks and investment funds a dispensation for failing to comply financially, which would mean that there has been a non-payment of €200m.

La Liga, Barcelona

Barcelona’s Massive Debt Approaches €1B

Lionel Messi Priceless

FC Barcelona is in the midst of a presidential campaign, but the winner might be getting a poisoned challis as Barcelona’s growing debt is set to force the club into a period of dramatic austerity, with the Catalan giants owing €900m to creditors.

The LaLiga side announced during the 2019-20 season that it expected to be the first club to break the €1bn barrier for income in a single year in football, however that figure was blown off course by the coronavirus pandemic.

As a result, the club had a loss of almost $100m last season, and there are concerns this season could be worse.

Bundesliga, Juventus, La Liga, Ligue 1, Liverpool, Premier League, Real Madrid, Serie A

COVID Expected To Cost Football Clubs Over €5B This Season

Lost Revenue Due To COVID

An eye-watering £4.5billion loss is expected to be suffered across Europe’s top six leagues as a result of the coronavirus pandemic, according to a new report from KMPG.

The international audit company have compiled an in-depth study into the effects the ongoing Covid-19 chaos caused last season, with particular focus given to the 2020/21 champions of the major European divisions.

All six champions, Real Madrid, Juventus, Liverpool, Porto, PSG and Bayern Munich, saw a decrease in operating revenues with estimated losses in that department across those six divisions reaching -€5B.

La Liga, Barcelona, Real Madrid

La Liga Slashes Barcelona’s Wage Cap By Almost 300m

La Liga Wage Cap 2020

La Liga has reduced Barcelona’s wage cap from €671 million last season to €382.7m this season, a fall of €288.3m in the wake of the financial pressures caused by the Covid-19 pandemic.

Barcelona will have nearly €383 million to spend on salaries, compared to €671 million euros last season. Madrid has the biggest cap this season at €468 million, down from €641 million euros a year ago, while Atletico Madrid are at €252.7m from €384.5m.

The wage caps that La Liga have imposed on other clubs include Sevilla at €186 million, Villarreal €145 million and Valencia at €103 million euros. Promoted Elche will have the smallest salary cap at €34 million euros ($40 million).