FC Barcelona is negotiating a $109 million loan according to La Vanguardia, which cited anonymous … [+]
FC Barcelona is negotiating a $109 million (€100 million) loan according to Catalan newspaper La Vanguardia, which cited anonymous sources.
Barca has suffered financially since the turn of the decade, when overspending on poorly-advised signings and player salaries, coupled with the effects of the pandemic, pushed it to the brink of bankruptcy.
Before the weekend, head coach Xavi Hernandez faced RAC1 reports that he will be fired in the immediate future after publicly discussing his club’s bleak economic outlook and how it effects being able to compete with bitter rivals Real Madrid.
Xavi said that the situation at his club is “difficult economically”, and nothing similar to “what used to happen 25 years ago” when the Barca coach could demand: “I want this one, this one and this one,” in reference to transfer market targets.
It was only three weeks ago, however, that Xavi decided to go back on a January decision to step down on June 30 and instead see out his contract until the same date in 2025.
Mundo Deportivo reported that one of his prerequisites for doing so was being backed in transfers, though Xavi denied this.
Whether he is the manager or not next term, it is clear that the Blaugrana needs reinforcements and also the money to bring them in.
To this end, the club has reportedly begun negotiating a new loan of €100 million ($109 million) though this is dependent on whether a contract extension with Nike becomes a reality.
The American sportswear giant should pay Barca that sum every year and the same amount in a signin-on bonus, without even mentioning extra amounts that could be forthcoming for positive results in major competitions.
The next five weeks will be crucial for Barca, which needs to balance its books before the end of the financial year which is also June 30.
Receiving the loan beforehand would be a positive step for President Joan Laporta and his board, who have done a great amount of financial and accounting gymnastics such as the pulling of “economic levers” in 2022 which entailed the sale of stakes in Barca Studios plus percentages of future television rights income.
