"Barça's problem is future sanctions": the risk of relying on leverage

BarcelonaYet another summer, Barça faced doubts and uncertainties just days before its La Liga debut. And that's four summers now. Hansi Flick was already unable to field Dani Olmo in the first two matchdays last year. A situation that is exacerbated in the offices of Aristides Maillol, but also shared by other teams in the Spanish league. Sevilla, Getafe, and Levante are some of the other clubs that have also been unable to register their new signings. "The problem, especially for Barça, is how the regulations are written," says Rubén Mancera, a lawyer at Salas Miralles & Mancera.

The salary cap is an economic control that is as restrictive as it is necessary for many teams. The main objective is to prevent clubs from spending more money than they can afford and to block the registration of entities with debts to Social Security or the Treasury. However, the lawyer believes that most clubs will be able to register their players before their La Liga debut: "Many are waiting to see how their payroll turns out in case they need to make a move in a specific direction."

The risk of levers

The same certainty doesn't exist with Barça. Pending the audit, which is taking longer than usual, and Ter Stegen's long-term absence, The board of directors has unanimously approved a guarantee of 7 million euros to help resolve the situation.. Extraordinary income has been obtained from the offices through alternative means such as sponsorship with the Democratic Republic of the Congo or the sale of Iñigo Martínez, but it hasn't been enough. For the moment, only Joan Garcia will be registered for the debut in Mallorca.

In any case, these levers that have been used in recent years pose a long-term risk. "Barça's problem is the sanctions it could face in the future if these transactions aren't properly accounted for or if any could turn out to be fictitious," Mancera acknowledges. In fact, The Catalan club has already been fined at least 15 million euros by UEFA this summer for the way it calculated the sale of audiovisual rights."Now, with Congo, they've done it right and deferred it to different years," the firm notes, and admits that the same could happen with the registration obtained in the courts for Dani Olmo and Pau Víctor. "In the future, there could be financial penalties for not having properly performed the balance sheets or audits. There's a risk that they'll come back negative or that some fraud may be revealed," they affirm.

No problem renewing Lamine

Where Barça hasn't had any problems has been with the registration of Lamine Yamal's new contract. According to the law firm, this is due to a change in league regulations. The club allows players under 24 who have developed in the youth academy and have been with the club for at least three seasons to renew, even if the salary cap is at its maximum. Furthermore, as with the winger from Rocafonda, there must be a justification of sporting and economic necessity, meaning it is necessary to renew to avoid leaving for a lower value than the market.

But, like everything, it comes with its risks. If the club doesn't regularize this salary increase and balance the books before the end of the season, it would be deducted from next season's cap. These are fictitious figures. Let's assume that Lamine Yamal's salary cost increases by five million euros and Barça has a salary budget of 100 million euros to spend. If he doesn't regularize his contract, the Catalan club would start with €95 million next year, not €100 million. Furthermore, the winger's salary for that year would have to be deducted.

The Catalan club also benefited from another change. Barça operates as a single club, has a single budget, and all sections count toward the men's first team's salary bill. However, since this year, a portion of the women's team's salary does not count toward the first team. fair playOf Pere Romeu's team's salary, two million euros are not included in La Liga registrations, Mancera points out.

Signing with CVC would have benefited Barça in the short term.

One of the solutions that would have benefited the entity chaired by Joan Laporta in the short term would have been to accept the CVC. In December 2021, La Liga signed a collaboration agreement with the British company under which the clubs received a total of €1.994 billion. Barça, Real Madrid, and Athletic Club rejected the transaction. For Rubén Mancera, this decision is a problem for the Catalans today, as it was a significant cash injection that they didn't receive, although it could benefit them in the future. "The question is what will happen in three or four years if the audiovisual rights of these teams are no longer as high because another company is managing them," he says.

The Premier League, a more favorable control for Barça

In the Premier League, on the other hand, financial control, profit and sustainability rules (PSR), is carried out every three years. Teams have a loss limitation, meaning they cannot exceed £105 million in losses during this period. This allows clubs like Chelsea to make large investments and then offset them, either through sporting success—more revenue—or through the future sale of players, as exemplified by Salas Miralles & Mancera. Failure to comply with the regulations entails financial sanctions, but also sporting sanctions, as has happened with Everton and Nottingham Forest, who were docked points in the 2023-24 season.