Barcelona’s debt is growing. There’s even talk of bankruptcy

When you step into the empty 100,000-seat Camp Nou stadium, a giant sign on the opposite stand greets you with the words Més que un club (translated as More than a club). And indeed, FC Barcelona is the pride of the proud Catalans and an institution that goes far beyond football. However, the club, whose value was recently estimated at 3.2 billion euros by the specialized KPMG Football Benchmark study, is currently going through a difficult period. The situation is so serious that one of the most beloved sports brands in the world could, in the worst-case scenario, face bankruptcy.

Technically possible
"Reports about possible bankruptcy came from credible media, and since no Spanish legal expert has disputed them, technically, there could be room for some legal process," admits football manager and sports law expert Jozef Tokos to the Economic Daily (HN). However, Tokos believes the issue should be viewed in the long term as the result of many small missteps by Barcelona’s leadership. "The Messi factor is something unique, something other top clubs don’t have. Management should have dealt with it much earlier. Since they didn’t sell him while he was under contract, Messi has now become a cost item for the club, as he’ll leave for free after the season and they’ll still have to pay him generous bonuses," Tokos adds.

A one-sided narrative
How is it possible that a club with a 121-year history could be facing bankruptcy? The answer lies in the current pandemic and its consequences. The Blaugranas, as the club is nicknamed, need to save 190 million euros. This budget hole was caused by a loss of income from ticket sales, club merchandise, and other services. A deal on a 30% wage reduction must be negotiated between the club and its players by Thursday, November 5.

"Asking players now to fix management’s bad decisions beyond some level of solidarity seems like a very one-sided narrative to me. Especially if it’s framed in a way that, if the players don’t agree to the proposed pay cut, they’ll be the ones to bury the club," concluded Tokos, who sees the main culprit as the now former president Josep Maria Bartomeu and other members of the club's leadership.