Barcelona on the cusp of bankruptcy

 

Spanish giants Barcelona are at risk of bankruptcy unless the club can agree a fresh round of pay cuts, sources say.

Stars of the Calatan club already accepted a wage decrease, said to be 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 £88million announced in early October.

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, Barcelona have until Thursday to reach a settlement.

Unless they can cut £171m from their wage bill, the five-time Champions League winners reportedly risk having to file for bankruptcy.

The Blaugrana were launched into turmoil during the summer when Lionel Messi attempted to leave the club

The threat of a legal battle persuaded the Argentine to stay although his contract expires in June, at which point 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.

Veteran defender Pique reportedly 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 headed 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.”

Barca aren’t faring too well on the pitch either, as they are languishing in the second hand of the table after six games.

Ronald Koeman’s men have only won twice – in their first two games – this season, piling the pressure on the Dutch coach.