The 'gift' Laporta will leave for future Barça presidents
The Catalan club will have to write off €157.5 million in television rights over the next two decades.
BarcelonaThe small print of Barça's numbers can be more interesting than the big print that fills the front pages and headlines. At least, it usually provides a more far-sighted view than the short-term perspective that fills daily debates and the arguments of the current board of directors when defending the numbers to the members. Financial years close with a fixed figure, positive or negative (In this case, a negative of 17 million euros), but behind that figure there may be debts, accounting engineering, pending depreciation and balls forward that remain in a hidden room from the numbers displayed in the shop window.
Barça's 2024-2025 season is no exception. One of the most important asterisks for the club's long-term economic situation. It is the lever for the sale of 25% of Barça's television rights on Sixth Street. which was carried out in two shifts during 2022. This operation generated an accounting profit of €667.5 million, which was reflected in the figures despite Barça only receiving €510 million. The remaining €157.5 million is Barça's own capital contribution to Locksley Invest (the company that manages these rights)through a Sixth Street participating loanSince this financial investment will not result in Barça receiving any dividends or cash returns from this company during the 25-year term of the contract (until 2047), this issue has been one of the issues that has brought the auditor, Crowe, under scrutiny.
The concern of Laporta's board was that Crowe would force them to write down those 157.5 million euros all at once during the 2024-25 financial year, a situation that would have led to massive losses at the recent closing date. But, for now, Crowe will allow Barça to write down that accounting profit over the 25 years of the contract. In other words, the losses can be spread out to make the impact less significant. This means that they will be borne by Laporta himself, if he is re-elected in next year's elections, and by the presidents who come after him. ARA asked official Barça sources what the club's forecast is for writing down those 157.5 million euros, and the response was that "there is no forecast."
Why hasn't this write-down been carried out yet?
This ongoing devaluation was agreed upon after consulting firm Ernst&Young advised the club. Ernst&Young estimates overall TV rights growth of 2.5% year-on-year and determines an opportunity cost of 8.3%. For the time being, the recoverable value exceeds the book value (by €26 million), and for this reason, Laporta's board has not yet written off the €157.5 million in the 2024-25 financial statements. This is a game-changer, given that Laporta's accumulated losses during this term now total €230 million.
"The club's investment is not economically recoverable and, consequently, a total or progressive impairment should be recognized in the following years, as the absence of residual value is confirmed," explains X Héctor Mohedano, a financier specializing in Barça's numbers. What dangers does it pose that the 157.5 million euros will have to be impaired at some point or another? Beyond the fact that it will be a financial burden that Laporta and the following presidents will have to assume while the maturities of the 1.45 billion euro financing of the Espai Barça are faced, the impairment will negatively affect the club's net worth (currently negative at 153 million) and the fulfillment of thefair play La Liga's financial situation remains overstretched. Barça's sports salary bill is 534 million euros, and its salary cap is 351 million euros.