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Why Barcelona's current Financial Crisis requires urgent attention

Spanish La Liga club, FC Barcelona are currently in a financial pit. The Spanish giants have a huge financial debt before them, should they fail to clear their current debt they would be crying out for Bankruptcy.

FC Barcelona reportedly have €1.3 billion in debt. This huge debt has hampered their growth as a club and restricted them from flexing their financial muscles in the transfer window.

Over the years, FC Barcelona have been known for their buying power and ability to convince virtually all players to move over to the Camp Nou. But that's not the case at the moment.

According to the current club president, the club is in the intensive care unit, compared to the lifeless state in which they met it. This revelation says a lot about the way things are being run at the club.

FC Barcelona have been known to offer players huge wages and this is eating-up their finances. The club needs to downsize the wages of players, let the big-earners leave the club. (Both options have been tested, but still the club struggling and so many players weren't in agreement to wage reduction).

Image credit: espnfc IG

The main point in all of this is that FC Barcelona as a club needs to start making money, they need to generate more funds.

Although the club management are doing everything they can to get them out of their indebtedness, they are still running at a loss.

Uli Hoenes, ex-Bayern Munich president believes Barcelona is broke and If they were in Germany, they would have filed for Bankruptcy.

Barcelona have sold 10 percent of their La Liga TV money for up to 25years, all for €207.5 million. 25 years is a long time if you ask me. And they are looking to sell 49.9% of their marketing and licensing company for €300 million.

Thanks to streaming platform Spotify, Barcelona do not need to sell their assets for money. Spotify struck a deal worth €280 million with the Catalan club, easing them off some of the financial burdens they have got.

The deal would see the club rename the Camp Nou, the first time the stadium would be renamed in the club's history. It does stop there, the Spotify brand would appear in front of the men's and women's jersey for the next four seasons.

With that being one of the major financial bail outs Barcelona has gotten, they have decided to consider two options available to them; signing players on free transfers and making big sales this summer.

Barcelona has been busy in the summer transfer window signing players, but this time around most of them have been free transfers. A strategy they must adopt to save money. Jessie, Christiansen joined Barcelona on free transfers from AC Milan and Barcelona respectively.

Barcelona are looking to make big sales this summer to recoup some funds into their pockets, and one player they are considering selling is Frenkie De Jong.

Barcelona reportedly want nothing less than €80 million for the midfielder. Although they had previously disproved any claims of the player leaving, they are likely to consider any big money approach for the player.

Content created and supplied by: Gblizz (via Opera News )

FC Barcelona Financial Crisis La Liga Spanish

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