Barca report €481m losses but says wage cuts and Nou Camp reopening will return profit

October 5 – FC Barcelona has confirmed losses for the covid-hit 2020/21 financial year at €481 million after tax. Revenue for the year was €631 million while expenditure had boomed to a massive €1.136 billion.

Barca had originally set a budget of €828 million for the year and forecast a post tax profit of €1 million.

The €224 million drop in revenue on the 2019/20 season figure of 855 million is set against a rise in spending from €955 million to €1.136 billion, the highest ever in the club’s history. €122 million was invested in developing the Espai Barça “and other extraordinary investments”.

For the current season the club is forecasting a revenue increase to €765 million as the club progresses the reopening of the Camp Nou towards full capacity, as well as contribution from the reopening of club shops.

Key to any financial improvement is the reduction of costs with club saying they will be down to €784 million, mainly due to a 31% cut in the player wage bill that has seen Barca lose Lionel Messi among others.

Barca predicts it will end the financial year overspending its revenue by €19 million but said that will be compensated by a net financial position of €23 million, leaving the club €5 million in the black.

Tomorrow Barca’s general director, Ferran Reverter, will formally present the financial results, this season’s budget and the club’s ‘Due Diligence reports’.

The club said it had cash at bank of €63 million but that bank debt stands at €533 million.

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