We’ ve been amazed at the schoolboy-like financial management that goes on at football clubs throughout Europe – and that’s being very kind
News yesterday that new Barcelona president Sandro Rosell has admitted that the huge Barcelona club is short of money, and had trouble recently playing the players’ wages.
The President admitted they had to sell Dmitryo Chygrynskiy back to Shakhtar Donetsk yesterday for €15M, to free up funds – so we wonder if they’d flog Lionel Messi to Newcastle on the cheap? 😀
Rosell was talking to RAC-1, and admits freely the club have had to borrow money to pay the player wages for last month, and have recently requested a huge loan of €150M, which is around £125M.
But Rosell insists the club is not bankrupt, well yes, while that may be technically true – we understand the club has total debts of €489M (£400M) – which is an absolute disgrace.
We wonder what the interest alone is on those loans each year – £40M at a 10% rate as an example – that’s £800K a week.
The Barca President said he expects the situation to improve once the club sign off on a new TV deal in the coming weeks, but here is another example of a European football club spending money that it just doesn’t have.
And guess what – they still want to sign Fabregas from Arsenal for up to £30M this summer – that’s financial irresponsibility at its very worst.
We’d much rather a club live within its means, as European clubs will all have to shortly, with the new laws being implemented by UEFA President Michel Platini.
Clubs surely must tighten their belts and be signing up good young players, and concentrate more on their Youth Policies, to make, rather than have to buy world-class players who cost ridiculous transfer fees.
Hey, come to think of it, that’s exactly what Newcastle United are doing, and we thought that’s what Barcelona were doing too, but they are living in the stratosphere – way above their means.
They will have to be very careful if they are not to become the biggest football club ever, to announce they have gone bankrupt.