700 million to keep Barça afloat

BarcelonaIt is no longer news that Barça starts the financial year without giving any details about the previous closing. Years ago, the club used to present an advance of the figures (as of June 30) to its members in a press conference before August. Subsequently, these economic data (income, expenses, profits, short-term and long-term debts, etc.) were audited and submitted for a vote at the general assembly in the fall. In contrast, since Joan Laporta returned to the Camp Nou box in 2021, this exercise in transparency merges directly with the annual meeting – which has been remote since covid-19 – with the delegates, which this year is expected to take place in September or October in a single session with many issues to debate and also a certain urgency to resolve them.

Only the directors and some Barça executives have a clear picture of the accounts that the auditor, Crowe, is working to validate. The general director, Manel del Río, whose future at the entity is uncertain, as acknowledged to this newspaper from Carrer d'Arístides Maillol, presented the main headlines at a meeting last week. The most positive part of the reading is the operating income, which will be around 1.1 billion euros and will be higher than operating expenses, quantified at just over 1 billion. In contrast, financial expenses will exceed the 51 million foreseen due to delays in the Camp Nou works: Barça has had to pay interest on the financing of the work that, in principle, was to be covered by the income from a stadium that is still operating at half capacity today. But if the net result of the year is negative, as is presumed, it will not be so much due to this variation as to the imputation of some extraordinary loss linked to the past leverage.

Since the exploitation of the new Camp Nou is the main hope to stabilize the Barça economy, the priority is that the reform does not suffer further delays. In fact, as ARA already explained and confirmed the new economic vice-president, Ferran Olivé, Barça has also advanced money to prevent the work from being halted due to a lack of resources. And with the 1.450 billion euros from the securitization fund signed in 2023 with Goldman Sachs to raise the new stadium practically exhausted, Barça has a certain urgency to raise around 500 more.

The cost overruns already exceed 400 million due to the rise in material prices, difficulties in finding qualified workers in some areas, and limitations on carrying out construction work at night. There is not enough money to finish the third tier, which will not be able to open partially until well into 2027, and to install the roof, which will lead to a new exile to Montjuïc. Limak, once defined by Laporta as the fastest and cheapest construction company of all those that bid, will build a 2,000 million Camp Nou in more time than promised.

Treasury guaranteed for the coming months

The members will have to give the green light to this credit expansion in the dense assembly that will be convened in the coming weeks. But while the works advance under the August sun and humidity, and given that the club's ordinary activity cannot cover all the daily needs, Barça has been forced to issue more debt. It has done so for a value of 105 million, in the form of bonds, without the need to go through the assembly and with an interest rate of 5.14% per year.

With this money, the lack of income associated with having a half-finished Camp Nou is alleviated, and the transfer market is approached with more room to take advantage of the normality granted by the 1:1 rule of fair play financier of the League. Looking ahead to November, as reflected in the latest credit rating of the club, there is another bond issuance scheduled for the same amount (105 million) that will help to face ordinary activity. In total, before Christmas, Laporta can raise about 700 million in debt to keep Barça afloat.