OFFICIAL: LaLiga clarifies FC Barcelona’s financial position

 

 

 

 

Spain’s top flight league, La Liga, has clarified the financial of FC Barcelona in view of different and incorrect information about the team in terms of compliance with its financial control regulations.

 

 

 

In a document made available to sportbusinessbrand.com, LaLiga explained that it has rigorously and effectively applied the rules of Economic Control in the case of FC Barcelona at all times, as with the rest of the associated clubs, and, where appropriate, has sanctioned non-compliance with these rules.

LaLiga revealed that the worsening of FC Barcelona’s financial situation took place in the seasons affected by COVID (2019/2020 and 2020/2021), in which the club adopted a series of decisions that were subject, as in all other clubs, to the application of the Economic Control rules and the consequent repercussions on its ability to register players.

In addition to this direct impact of a severe reduction in revenues, in 2020/2021, results were significantly affected, adding up to a negative cost of around 500 million euros, including impairments and provisions for future expenses decided by the current board of directors.

As a result of the situation explained above, in the 2021-2022 season, FC Barcelona was only able to sign players by proportionally reducing the cost of its squad (art. 100 of Economic Control).

According to LaLiga, FC Barcelona, like any other club, would be subject to disciplinary measures if it failed to comply with other LaLiga control measures, such as overdue debts to employees, clubs and public administrations. In fact, in the past, the Economic Control Committee has applied the disciplinary rules to FC Barcelona, exactly as it has to all other clubs.

Ahead of the 2022/2023 season, the club will continue in the same situation with limitations on its contracting, unless, in exactly the same way as the rest of the members and as established in the economic control regulations, it obtains income and capital gains that would balance the situation described above.

If the club were to undertake extraordinary revenue generating actions that would allow it to offset the accumulated losses and thus abandon the status of a club in excess of its LCPD, it could re-register players on a normal formal basis, regardless of whether those actions relate to transactions with CVC or any other entity.

Regarding the Club’s adhesion or not to the Boost LaLiga agreement, as has been reiterated on countless occasions, FC Barcelona can join the project when it decides to do so, as has been reiterated on many occasions, under exactly the same conditions as the other clubs that are already part of it and always respecting the approval times required by the LaLiga and/or CVC Capital bodies.

LaLiga, of course, acts as guarantor of compliance with the regulations approved by its supervisory bodies on an equal basis with all clubs.

 

About LaLiga

LaLiga is a global, innovative and socially responsible organisation, a leader in the leisure and entertainment sector. It is a private sports association composed of the 20 teams in LaLiga Santander and 22 in LaLiga SmartBank, responsible for the organisation of these national professional football competitions.

LaLiga is the football competition with the most followers on social networks in the world, exceeding 150 million, on 17 platforms and 20 different languages.

With headquarters in Madrid (Spain), it is present in 41 countries through 11 offices and 44 delegates.

The association carries out its social action through its Foundation and is the world’s first professional football league with a league for intellectually challenged footballers: LaLiga Genuine Santander.

About Ojeikere Aikhoje

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