- They lost $105mn in 2009-2010 and have debts of $582mn
- They recently signed a kit sponsorship deal with the Qatar Foundation worth about $40mn a year over 5-and-a-half years.
How is Barcelona in such a hole? When Sandro Rosell took over as President he basically found out that Laporta had been lying about the books. Always more of a politician than an administrator, Laporta was able to hide the club's sizeable debt behind, it would seem, just his own smugness. It was a rude awakening for Rosell and he promised to reduce debt immediately.
It would seem to defy logic that Barca could lose money after another successful campaign in 2009-2010 but it's not inconceivable. I've tried to rationalize it and could actually reach an even higher range.
1) No t-shirt sponsorship (until next season) (accounts for 40mn)
2) Late or incomplete payments for their TV deal with Mediapro. Apparently the payment dates were not fully ennumerated in the contract (which Laporta negotiated). (accounts for 10mn)
3) Slightly premature exit from Copa del Rey and Champions League (accounts for 10mn)
4) Bad business over Chygrynsky and Ibrahimovic (accounts for 45mn)
The sponsorship is great news for finances, as are this year's excellent results. You would assume the long term debt will decrease after the year, though likely still be around 500mn Euros. I would expect to see a few debt-reduction policies over the next couple years:
1) Continue promoting from within to avoid transfer fees - and do not buy unless truly necessary. For instance, what on Earth would they need to buy this year? (particularly with the B team performing so well)
2) Sell fringe players. Barca essentially have not sold anyone since Ronaldinho and Deco. Even Manchester United sold Ronaldo when their asking price was met. So as much as I hate to say it, if you can get 15-25mn Euros for Bojan you might have to do it. Hleb will certainly be allowed to leave.
3) Ask veterans in decline to take a pay cut? Performances and appearances for guys like Milito and even Puyol will probably decline as they enter their mid-30's, and hopefully their salaries reflect as much.
More thoughts on Barca to come pending further developments...
