Barca’s $billion debt bubble looks ready to burst

January 26 – The full extent of the financial crisis at Barcelona, one of the biggest brands in world football, have been laid bare by staggering claims that the club is on the verge of bankruptcy.

While the coronavirus pandemics has hurt almost all teams in Europe, Barcelona are said to be losing a lot more money than others.

Latest financial figures show their debt at €1.173 billion in debt, with €730 million of that sum due in the short term and €266 million owed to the banks by June 30.

The report also highlights the fact that 74% of the club’s revenues go on players’ wages – a figure that exceeds the league’s 70% limit. A total of  €126 million is still owed to other clubs including €29 million to Liverpool for the signing of Philippe Coutinho back in 2018 and €16 million to Ajax for Frenkie de Jong

Interim club president Carlos Tusquets, in a wide-ranging interview to Catalan radio station RAC1, said the club were unable to pay players for their pre-agreed January salary while the Spanish daily La Vanguardia claimed the Catalan giants must repay €420 million in debt to survive insolvency.

The alarming figures seem certain to intensify the likely high-profile departure of Lionel Messi and present a huge head-ache to whoever takes over as president from the outgoing Josep Maria Bartomeu while on the field Barca are 10 points off the lead held by Atletico Madrid.

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