FC Barcelona hopes to put an end to its financial drain this year and close the season positively. Specifically, with a net profit of five million euros, according to the budget that has been made public today and that it will present at the shareholders’ meeting that will be held on October 17, and in which the result of the 2020 financial year will also be settled- 2021, with a loss of 487 million.
This optimistic scenario, taking into account the last two seasons, is based on a recovery of the income lost due to the pandemic, thanks mainly to the return of the public to the stadiums. The board of directors chaired by Joan Laporta speaks of a turnover of 765 million, 21% more than the previous one, in which the income did not exceed 631 million. As the club recalls, this figure is 24% below what the previous board presided over by Josep María Bartomeu budgeted.
In addition to higher box office revenues, Barcelona, which speaks of a “complex path towards budgetary balance”, has a significant increase in commercial revenues thanks to the reopening of its stores. For this season, the club budgets operating expenses of 784 million, after reducing the salaries of its sports squads by 31%. “The rest of the expenses show increases as a result of the increase in costs derived from the reopening of facilities and the costs necessary to start up all the game operations,” says the club. Last season, operating costs climbed to a record $ 1,136 million. Laporta’s management team has included in this figure provisions “tax, legal, labor and delinquency, as a result of the recognition of certain liabilities that had not been recognized, and following the recommendations established in the Due Diligence”, which the CEO Ferrán Reverter will present next week.
In addition, the club has deteriorated the book value of some of its players “who were overvalued.”
With all this, the operating result for this season will continue to be negative at 19 million, although it expects to compensate that deficit with a financial result of 23 million and, in this way, reach five million in net profit.
Net debt of 680 million
Regarding the accounts closed on June 30 of this year, Barcelona recognizes a net debt of 680 million euros. Subtracting investments of 122 million in Espai Barça, the club speaks of an adjusted debt of 558 million, which causes a debt / ebitda ratio that breaches the limit of 2 times set by its creditors. Its bank debt reaches 533 million.
At the end of the season it had a cash of 63 million and a negative net worth of 451 million for the losses of the year. As it is a sports company and is not governed by the law of capital companies, this does not imply its entry into cause of dissolution.