Finances

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

Barcelona, La Liga

Barcelona Players Sign Extensions With Lower Wages

Four senior Barcelona players have signed new contracts which include a temporary salary reduction because of the impact of coronavirus.

The signings is a big win for embattled Barcelona president Josep Maria Bartomeu as they bat back criticism that he and the board have lost the dressing room. That Bartomeu was able to get Pique and ter Stegen to sign new deals with club is a big win for him.

Long-serving centre-back Gerard Pique, keeper Marc-Andre ter Stegen, defender Clement Lenglet and midfielder Frenkie de Jong have extended their deals.

Man Utd.

Manchester United Finances Hit Hard By COVID

Manchester United Old Trafford

Manchester United suffered a £70m drop in revenue in the period to 30 June 2020 as a direct result of the coronavirus pandemic.

United’s overall revenue was down 18.8% from £627.1m to £509m, but part of this was due to the club not qualifying for last season’s Champions League. In last year’s statement, United had estimated revenues could reach £580m.

Overall, United made a net £18.9m profit in 2018-19 and a net £23.2m loss in the most recent financial year.

It was also confirmed within the results that the Glazers still took an additional £23.23m out of the club in the form of share dividends.

La Liga, Man City

La Liga President Unhappy With Manchester City FFP Decision

UEFA

La Liga president Javier Tebas has criticized the decision to overturn Manchester City’s two-season ban from European football.

The Court of Arbitration for Sport (CAS) confirmed on Monday that the Premier League club had been cleared of “disguising equity funds as sponsorship contributions” and would be allowed to enter into European competitions as normal.

Back in February, the club had received a two-year ban from playing in the Champions League or Europa League following a lengthy investigation from UEFA.

“We have to reassess whether the CAS is the appropriate body to which to appeal institutional decisions in football,” Tebas said on Monday, as quoted by BBC Sport’s Simon Stone.

Champions League, Man City, Premier League

Manchester City Champions League Ban Overturned

Manchester City Tickets

Manchester City have won their battle with UEFA and their two-year Champions League ban has been lifted.

The Premier League club were banned from European football for two years in February after UEFA found they had committed ‘serious breaches’ of its Financial Fair Play regulations.

But many of the alleged breaches were more than five years old while City, adamant that they had done nothing wrong, appealed to the Court of Arbitration for Sport (CAS), who heard the case last month.

Man Utd., Premier League

Manchester United Financials Show Impact Of Shutdown

Manchester United Old Trafford

Manchester United’s executive vice-chairman, Ed Woodward, addressed the club’s investors on Thursday to discuss the club’s latest set of financial results, the numbers sounded bleak.

Over a 40 per cent increase in net debt, revenues down and an estimated £23 million ($28m) already lost due to Covid-19 made up the headlines, and the worst is yet to come as these numbers are through only the end of March.

Games behind closed doors, the club’s shop and museum remaining closed and a huge reduction in broadcast revenue will ensure the next quarter’s results have a similarly negative impact.

Juventus, Serie A

Juventus Impose Salary Cap

Juventus were the first big club to demand wage concessions from their players when Serie A stopped playing, a move that others across Europe quickly followed.

Are Juve trendsetters again as they have become the first Italian club to launch their own salary cap? Will other clubs follow this lead, leading to a reduction in wages across the top clubs in Europe?

From next season, the Serie A giants will hand out contracts worth a maximum of €9million a year, which works out at around €173,000 a week.

Barcelona, La Liga

Barcelona To Ask Players To Take An Additional Pay Cut

Barcelona Flag

With money tight everywhere we get a glimpse into who the best run football clubs. And who are not. One of the leaders in the worst-run category is Barcelona, who are going back to their players and asking them to take further wage cuts as Barca’s 2021-22 budget will be €200 million less than what it was this season.

The players have already agreed to take a 70% reduction to their monthly salaries to help Barca through this economic crisis, biut former vice president Emili Rousaud, who was a member of the board of directors until last week, told ESPN “the club’s proposal lacked ambition given the economic problems they will have to face.”

Ligue 1

PSG Set For ‘Colossal’ Financial Losses Due To Coronavirus Pandemic

The richest football club in the world, Paris Saint-Germain, are expecting to to suffer massive financial losses because of the coronavirus crisis according to their chairman Nasser Al-Khelaifi.

Al-Khelaifi is involved in negotiations to break the stalemate between France’s professional clubs and TV rights holders Canal+ and beIN Sports after the pair refused to pay the latest installment in their agreement because no fixtures are taking place.

Consequently, teams in Ligue 1 and Ligue 2 are under very serious financial threat with state-aided partial unemployment and a freeze on employers’ charges related to players’ salaries all that is keeping some afloat.

Inter Milan, Serie A

Suning Invest More Money Into Inter

Suning Inter MIlan Owners

Interesting news from FCInter1908.it that Suning Real Estate have become an official partner of Inter.

“Suning Real Estate has officially become an authorised partner of Inter Football Club,” the statement said. “The two companies will work together to create a beautiful community that integrates the experience of Italian style and sports culture.

“Adhering to the goal of continually pursuing product enhancement and superior service, Suning Real Estate will use Inter’s unique cultural characteristics and Inter Design’s creative concept to develop the operating mode of innovative scenes and integrate the Italian aesthetics with culture.”

Barcelona, La Liga

Is Barcelona In Danger Of Entering ‘Economic Bankruptcy And Moral Decay’

Barcelona have come under an astonishing attack from a presidential candidate looking to take over the club after he claimed the LaLiga giants are heading towards ‘economic bankruptcy and moral decay’.

Victor Font is the leader of the Si al futur group seeking to take control of the Nou Camp boardroom.

Barca have gone from one crisis to another during the coronavirus pandemic and on Thursday hit a new low when six of Josep Bartomeu’s board resigned from their posts.

Two of the club’s four vice-presidents – Emili Rousaud and Enrique Tombas – as well as directors Silvio Elias, Josep Pont, Jordi Calsamiglia and Maria Texidor have all walked out.