FC Barcelona Institutional and Financial Crisis

On 23rd of January 2014, Sandro Rosell resigns as president of FC Barcelona after a judicial investigation into the transfer of Neymar. He was indicted for a €9 million tax offence in the transfer of Neymar. After this chapter, Sandro Rossel’s Vice-President, Josep Maria Bartomeu become the new FC Barcelona president... the beginning of a long nightmare. A very long nightmare for the Catalan institution and the supporters.

Sandro Rossel and Josep Maria Bartomeu in a press conference.

Five coaches in 4 years, two Remontadas, an historical humiliation and Lionel Messi departure...

The beginning of Bartomeu was great: in 2015, FC Barcelone won five titles during the season whose the UEFA Champion League. The next year the club loses Champions League quarter final against its competitor in LaLiga Atletico Madrid. We can call it an “accident” even if the team is composed by the famous MSN with Messi, Neymar and Suarez.

The real beginning of this institutional crisis could start paradoxically in 2017 when Barca won against PSG during the eight final with the famous and controversial “remontada”. In the next step, the club loses again in the quarter final against Juventus Turin.
This game against PSG marks little by little the end of the dominance of the club in Europe. After the remontada, many journalists put in cover the celebration of Messi with supporters whereas Neymar scored two goals and assists the last goal. The next summer, he decides to join PSG for a record transfer of 222 million euros, only that.
The club under Bartomeu presidency manages very badly the money from Neymar transfer. Just after selling Neymar, the club decides to buy Ousmane Dembele for 135M€ and during the winter mercato, to buy also Phillipe Coutinho for a record amount of 120M€ plus 40M€ bonus. Two risky bets given the amounts issued by the club. In summer 2019, the latest club craze was the transfer of Antoine Griezmann for 120M€.

Paradoxically, after to beat PSG, FC Barcelona suffers two remontadas : in 2017 against AS Roma and in 2017 against Liverpool. The club became the laughing stock of Europe after suffering respectively the “Romatada” and the “Redmontada”.
The ordeal continued in 2019 when the club loses 8-2 against Bayern Munich in the quarter final of the Champions league.

In October 2020, Bartomeu resigns at his turn as FC Barcelona president. In 2021, Joan Laporta succeeded him after to win the presidential election. Maybe the reborn of the club? Not really... The 2021 year is also catastrophic for the club: the elimination by PSG in eighth final after to lose 4-1 at home. The next summer Messi joins PSG, like an air of déjà-vu. The crisis becomes also financial because of a very poor financial management of the club 
including the wage bill which prevented the club to extend Messi.

A debt over than 1.350 billion euros, an unprecedented financial crisis

The catastrophic mandate of Bartomeu trains the club to refund a 1.350 billion euros debt. In 2020-2021 fiscal year, the club loses 481€. The consequences of Batomeu mis management has led the club into a financial crisis. The latter explains why Messi leaves the club to join PSG whereas his extend was the main electoral goal, in vain.

Since Messi departure, the payroll decreased from 115 to 95%. The club did have a payroll under 70% which could jeopardize the transfer of Depay and Aguero, when you were talking about very bad management of the club.

The unique solution for the club is to reduce significantly the players salary with a payroll equal to 400M€. It was possible thanks to the loan of Antoine Griezmann to Atletico Madrid the last day of the transfer window. We also talk about a 595 million 10-year loan from the American bank Goldman Sachs. 

What do you think about this crisis? Can the club overcome it or not? How long will it take? 

BY Ridoy RAHMAN
UPDATED 11/02/2021 AT 16:02 GMT+1



https://www.marca.com/2014/01/23/en/football/barcelona/1390493431.html

https://www.bbc.com/sport/football/39152666

https://www.fcbarcelonanoticias.com/en/fc-barcelona/incalificable-the-world-wide-press-to-the-feet-of-the-barca-after-tracing-back_197798_102.html

https://www.fcbarcelona.com/en/news/2070667/joan-laporta-takes-office-as-fc-barcelona-president

https://www.espn.com/soccer/spanish-laliga/story/4451102/inside-lionel-messis-final-days-at-barcelona-and-how-he-ended-up-joining-psg

https://www.euronews.com/2021/08/16/1-35-billion-barcelona-president-reveals-extent-of-spanish-club-s-rising-debt 


Comments

  1. VPNovember 9, 2021 at 5:04 AM

    I think maybe there´s a financial crisis in La Liga but that´s not precisely the reason why legends are moving to other leagues (excepting the case of Messi). The level of the Spanish League has been decreasing throughout the years and if we must blame someone it´ll be the directives of the League who have been involved in corruption. In fact, the Barcelona is a recent example of this since his former president was even arrested because of the famous “Barcagate”case.

    ReplyDelete
    Replies
    1. UnknownNovember 11, 2021 at 9:49 AM

      Totally agree, hoping for the return of La Liga as we knew it before the departure of Neymar to PSG

      Delete
  2. The Pit stop NewsNovember 9, 2021 at 11:23 AM

    Joan Montoriol

    The writing is quite good, but there are errors in terms of data and results, such as that Barça lost against Bayern Munich, but it was 8-2, not 8-0. I am a “culé”, so I see myself with the obligation to clarify it. Although it was also in historical ridicule.
    As for the question you ask, I say yes, Barça will overcome this situation. Barça is one of the most recognized clubs and with the most followers in the world. Whatever city you go to, you will see people with the FCBarcelona shirt. Besides that, the future of Barça does not seem as catastrophic as we think. With the arrival of the new coach, Xavi Hernandez, and many quality young players such as Ansu Fati, Pedri, Araujo or Dembele, it seems that Barça will go up and it will not take long to do so. And if the results in the field improve, the economic results will also improve.

    ReplyDelete
    Replies
    1. UnknownNovember 11, 2021 at 9:54 AM

      It remains to be seen if the return of Xavi as coach will allow Barca to overcome this crisis. Especially since it will take time for the youngsters to develop (if they don't get injured...), as we saw with Vinicius at Real. I hope that Xavi will be as successful as Guardiola and Zidane but it will be really difficult.
      As for overcoming the financial crisis, it may take more time, even more with the Espai Barca project.

      Delete
  3. AnonymousNovember 20, 2021 at 7:09 AM

    This topic is probably the one who gets me more upset. My opinion of this crisis is that Bartomeu wanted to be preseident of Fc Barcelona to ruin the club and steal money. After getting the money from neymar (222 milions) he decided to buy Dembele for 135 millions. Ousmane only played a good season with Borussia Dormund, only 1 season can not make a player worth 135 m. Bartomeu only wanted to spend a lot of money so he could get money from this big deals. Then he had de briliant idea to buy Couthino and Griezmann both over 100 milions. They all 3 have been a complete failure, they haven't done anything important for Barça. Then Bartomeu decides to sign one of the worst coaches we have ever had, Ronald Koeman. And we still have a debt with him because of the contract he signed with Bartomeu. Bartomeu is a thief.

    ReplyDelete
    Replies
    1. AnonymousNovember 20, 2021 at 7:10 AM

      Also I believe that the club eventually will solve the bad economic situation but it will take years and years.

      Delete
  4. Quinten Van MeirvenneNovember 20, 2021 at 5:02 PM

    I think this is totally true. Bartomeu is the main reason behind the crisis they are in right now and now Laporta has to fix it. I do believe he will succeed but this will take a couple of years and we don't have that time actually.

    ReplyDelete
  5. extrem sportsNovember 21, 2021 at 8:31 AM

    Alejandro Viladomiu

    I think it is good to remember who destroyed the club but I think it is more important to look to the future and help rebuild it. I think it will take a few years to be a Barça similar to the one before but as I have said several times, the achievements are made with small steps, effort and dedication.

    ReplyDelete

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