The 'gift' Laporta will leave for future Barça presidents

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 this figure there may be debts, accounting engineering, pending depreciation and forward kicks 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 economy It is the lever for the sale of 25% of Barça's television rights to Sixth Street. which was carried out in two shifts during 2022. This operation resulted in an accounting profit of 667.5 million euros, which was reflected in the numbers despite Barça only receiving 510. The remaining 157.5 million are Barça's own capital contribution to Locksley Invest (the company that manages these rights and of which the club owns 49%), 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 off these 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. However, for now, Crowe will allow Barça to write off this accounting profit over the 25-year term 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 off these 157.5 million euros, and the response was that "there is no forecast."

Why hasn't this write-off 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 initial investment is not economically recoverable and, consequently, a total or progressive impairment will have to be recognized in the following years, as the absence of residual value is confirmed," explains Héctor Mohedano, a financier specializing in Barça's numbers, in X. 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 the fair 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.