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La Liga bailing out Barcelona & Real


Unan

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The Spanish league - "La Liga" - has just announced that they have reached an agreement with an investment fund, CVC, who will inject €2.7 billion to prop up the competition. Apparently this will allow Barça to inscribe Messi and the other new players without any problem and has solved at a stroke all the serious problems affecting them. Some people on here will not be very happy.

Barça will recieve an injection of €250 million of which 70% will be to improve "infrastructure", 15% to pay off debts and 15% to invest in new players (Madrid the same).”

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Misleading headline info perhaps I assume all clubs will get something from that kinda deal.

Real Madrid are in a much better financial position than Barcelona- they actually made a small profit in 2020/21 and cut their net debt...I expect they're in a bit of transition and waiting for Summer 2022 to make a push for one of Mbappe, Haaland or maybe both.

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2 minutes ago, Mr Popodopolous said:

Misleading headline info perhaps I assume all clubs will get something from that kinda deal.

Real Madrid are in a much better financial position than Barcelona- they actually made a small profit in 2020/21 and cut their net debt...I expect they're in a bit of transition and waiting for Summer 2022 to make a push for one of Mbappe, Haaland or maybe both.

Assume they will all get money but Barca seem to be the only club spending incredibly more than they make, even when they make near half a billion(?). 

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7 minutes ago, Banned User said:

Assume they will all get money but Barca seem to be the only club spending incredibly more than they make, even when they make near half a billion(?). 

Barcelona's position is more the debt structure from what I can see- or has been anyway, they ran at tight margins even prior to Covid- possibly reflected by La Liga slashing their allowable wage budget, but not technically loss making- huge debt pile and a lot of it was short term...they need a serious restructure for a few years IMO.

Not really looked into this story much, the CVC-La Liga link, wonder what CVC will be extracting in return.

Barcelona especially, would be best advised to use the cash/lifeline wisely and restructure over 2-3 years as then they'll have headroom to bounce back quicker and stronger. Just accept a few years of meh.

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Barcelona I'd suggest the following course of action for:

  • Sign the frees and leave it at that.
  • Offload some more fringe players if possible.
  • Look at cost savings in other areas.
  • Look to restructure and speed up repayment of debt where possible. Bayern a few years ago paid Stadium debt 15 years early or similar.
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No longer a real competition then. Unless all teams get exactly the same, what's the point. 
I wonder where a smaller team, that has worked to a budget would be with a cash injection of £250m. That might make them a little more competitive .

 

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4 minutes ago, 1960maaan said:

No longer a real competition then. Unless all teams get exactly the same, what's the point. 
I wonder where a smaller team, that has worked to a budget would be with a cash injection of £250m. That might make them a little more competitive .

 

We'll £2.7 billion divided by 22 teams is £122.7 million each. If Barca and Real are getting £250m then most other teams will be getting considerably less.

I've also seen that £2.7 billion is also earmarked for growth into women's football, grass roots and other things, so even less for other clubs!

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1 hour ago, Banned User said:

The Spanish league - "La Liga" - has just announced that they have reached an agreement with an investment fund, CVC, who will inject €2.7 billion to prop up the competition. Apparently this will allow Barça to inscribe Messi and the other new players without any problem and has solved at a stroke all the serious problems affecting them. Some people on here will not be very happy.

Barça will recieve an injection of €250 million of which 70% will be to improve "infrastructure", 15% to pay off debts and 15% to invest in new players (Madrid the same).”

Infrastructure. :laugh:. The infrastructure at the Camp Nou is excellent. The whole town is in pretty good shape from what I see (except of course the cathedral that they can’t finish). 
 

The European Super League begins and ends with these two basket case clubs. 

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10 minutes ago, REDOXO said:

Infrastructure. :laugh:. The infrastructure at the Camp Nou is excellent. The whole town is in pretty good shape from what I see (except of course the cathedral that they can’t finish). 
 

The European Super League begins and ends with these two basket case clubs

Real Madrid small Profit in a Covid hit season- not sure they're the basket case, also seem to have been focusing on cutbacks and debt being paid down based on an early summary of 2020/21 Accounts, some headline figures I saw anyway.

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1 hour ago, Mr Popodopolous said:

Real Madrid small Profit in a Covid hit season- not sure they're the basket case, also seem to have been focusing on cutbacks and debt being paid down based on an early summary of 2020/21 Accounts 

https://www.republicworld.com/sports-news/football-news/real-madrid-reveal-extent-of-financial-distress-gross-debt-escalates-to-901-million.html

The Gross debt of Real Madrid earlier this year was 901 million E, that’s a matter of record. The debt of Barce and Madrid combined is in excess of 2 billion. 
 

I saw Real Madrid’s laughable earnings statement for the last season which brushes over their extended financial problems only surpassed by Barcelona. There is plenty about it out there. 

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3 minutes ago, REDOXO said:

https://www.republicworld.com/sports-news/football-news/real-madrid-reveal-extent-of-financial-distress-gross-debt-escalates-to-901-million.html

The Gross debt of Real Madrid earlier this year was 901 million E, that’s a matter of record. The debt of Barce and Madrid combined is in excess of 2 billion. 
 

I saw Real Madrid’s laughable earnings statement for the last season which brushes over their extended financial problems only surpassed by Barcelona. There is plenty about it out there. 

Tottenham have a similar debt pile I believe, lots of big clubs have big debt piles.

Ah I see what I've done, I've got debt and net debt mixed up with Real Madrid- that's gross debt, I skim read and saw net debt of 46m euros.

Real Madrid much better financially placed than Barcelona but not looked in depth for a while.

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8 minutes ago, Mr Popodopolous said:

Tottenham have a similar debt pile I believe, lots of big clubs have big debt piles.

Ah I see what I've done, I've got debt and net debt mixed up with Real Madrid- that's gross debt, I skim read and saw net debt of 46m euros.

Real Madrid much better financially placed than Barcelona but not looked in depth for a while.

I don’t think they have bought much if anyone for quite a while, as such they are making an effort. However Athletico are Champions (just) and Barcelona (who are effectively the national team of Catalonia) are screwed without the European super league or cash injections given the nod by the Spanish league/government. Thus the cash injections that the OP refers to.
 

I’m not sure I would be to happy if I were Real Betis or (insert other Spanish club here) and what this does to any notion of authorities not giving special trading status to some clubs. But Hey ho I wont worry until we are in the top four. 

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22 minutes ago, REDOXO said:

I don’t think they have bought much if anyone for quite a while, as such they are making an effort. However Athletico are Champions (just) and Barcelona (who are effectively the national team of Catalonia) are screwed without the European super league or cash injections given the nod by the Spanish league/government. Thus the cash injections that the OP refers to.
 

I’m not sure I would be to happy if I were Real Betis or (insert other Spanish club here) and what this does to any notion of authorities not giving special trading status to some clubs. But Hey ho I wont worry until we are in the top four. 

Sevilla and Villarreal two others- believe they're quite well run clubs yet bet they aren't getting a huge amount from this.

Yeah, they are definitely making an effort- bit of a puff piece of course but there has been restraint and I think they (Real Madrid) coming to the end of a cycle and will show that restraint for another year and look to go again more in 2022 subject to Covid.

https://www.realmadrid.com/en/news/2021/07/14/real-madrid-c-f-closes-the-2020/21-financial-year-with-a-positive-result-of-874000-euros

Says 295m euros in cuts when we include gross transfer fees in, ie net spend/profit, wages and Operational savings in 2 seasons...they'd be wise to hold and wait another year IMO.

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1 minute ago, Mr Popodopolous said:

Sevilla and Villarreal two others- believe they're quite well run clubs yet bet they aren't getting a huge amount from this.

Yeah, they are definitely making an effort- bit of a puff piece of course but there has been restraint and I think they (Real Madrid) coming to the end of a cycle and will show that restraint for another year and look to go again more in 2022 subject to Covid.

https://www.realmadrid.com/en/news/2021/07/14/real-madrid-c-f-closes-the-2020/21-financial-year-with-a-positive-result-of-874000-euros

Says 295m euros in cuts when we include gross transfer fees in, ie net spend/profit, wages and Operational savings in 2 seasons...they'd be wise to hold and wait another year IMO.

Yes they would be wise. However getting funds to spend (on players) often leads to spending above the value of the windfall. The thought that Madrid are not kings of there own City gets to those at the very top of Spanish government and Royalty

Personally speaking one of my oldest friends is the niece of Jesus Gil (former Chairman of Athletico, who once sacked Ron Atkinson after about three weeks) so I am up with the Schadenfreude!

Little story…..On the last day of the season some of the family couldn’t watch, particularly after Athletico went behind, so I was sending them score updates to Madrid from the USA on What’s Ap. Funny Old Game!

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2 hours ago, REDOXO said:

Yes they would be wise. However getting funds to spend (on players) often leads to spending above the value of the windfall. The thought that Madrid are not kings of there own City gets to those at the very top of Spanish government and Royalty

Personally speaking one of my oldest friends is the niece of Jesus Gil (former Chairman of Athletico, who once sacked Ron Atkinson after about three weeks) so I am up with the Schadenfreude!

Little story…..On the last day of the season some of the family couldn’t watch, particularly after Athletico went behind, so I was sending them score updates to Madrid from the USA on What’s Ap. Funny Old Game!

Ultimately can't particularly abide Real Madrid so of the two, always preferred Atletico somewhat. Used to quite like Barcelona, lots of youth, Unicef on the shirts- not support but quite admired but they seem to have changed a lot. A guy from Barcelona as their manager too, from their way of playing...probably glossed over some of the worse bits but that was them a while ago but no longer.

Ah- a friend of the stars, indirectly! Did you ever meet Mr. Gil? From what I read he liked firing managers to say the least...

Still in touch with some of the Gil family then? Wonder if you can ever get cheap tickets to take in an Atletico game! Think they lost something when they left the Calderon, new ground looks less atmospheric but seems the way with a lot of new grounds everywhere tbh.

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11 minutes ago, Mr Popodopolous said:

Ultimately can't particularly abide Real Madrid so of the two, always preferred Atletico somewhat. Used to quite like Barcelona, lots of youth, Unicef on the shirts- not support but quite admired but they seem to have changed a lot. A guy from Barcelona as their manager too, from their way of playing...probably glossed over some of the worse bits but that was them a while ago but no longer.

Ah- a friend of the stars, indirectly! Did you ever meet Mr. Gil? From what I read he liked firing managers to say the least...

Still in touch with some of the Gil family then? Wonder if you can ever get cheap tickets to take in an Atletico game! Think they lost something when they left the Calderon, new ground looks less atmospheric but seems the way with a lot of new grounds everywhere tbh.

I would never ask or anything like that, but I will get to a game one day. I’m certainly in touch with his niece, I’m not sure I would call that ‘the family’ but that last day was a funny day with Athletico going behind and Real having a goal disallowed. 

Hence the anecdote. 
 

Nope never met him, but there is a story there. None of which I’m sharing on here. 

You have to be an individual of a certain age to even know who ‘uncle Jesus’ is  :laugh:!

Just posted a picture of me and Shaun Goater in another thread, :laugh:. But I only met him once  so not so much a friend of the stars!!

 

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Barcelona's finances really are laughable...

Who on earth made the decision to sign the likes of Aguero, Depay, Eric Garcia and Emerson (left back signed from betis) before securing the future of Messi? 

Barcelona's official club statement does seem as though they are sending a message to LaLiga.

The league will suffer huge commercial loss if Messi leaves. 

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Clubs will be falling over themselves to sign him. Would love to see him play in England.

Bit embarrassing for Barca, even with financial aid they seem to have hit an inevitable limit and have to watch one of the greatest of all time just walk away.

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On 04/08/2021 at 16:53, Mr Popodopolous said:

Barcelona I'd suggest the following course of action for:

  • Sign the frees and leave it at that.
  • Offload some more fringe players if possible.
  • Look at cost savings in other areas.
  • Look to restructure and speed up repayment of debt where possible. Bayern a few years ago paid Stadium debt 15 years early or similar.

Comparing Barca to Bayern in terms of finance is like comparing a smackhead to Martin Lewis

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40 minutes ago, E.G.Red said:

Due to financial and reconstruction issues. 
Could be bad news for Harry Kane

https://www.dailyrecord.co.uk/sport/football/football-transfer-news/lionel-messi-leave-barcelona-late-24698973

This is a rehash of a report in La Marca, a Spanish paper that has a Real Madrid bias. Let's wait and see. 

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