Barcelona A Good Example Of Suicidal Financial Management

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.

Comments welcome.

13 comments so far

  • NUFC_Richyg01

    Jul 8, 2010 at 12:41 PM

    Comment #1

    Players going cheap then??

  • listie

    Jul 8, 2010 at 12:55 PM

    Comment #2

    Where are all those who said Newcastle should be owned by the fans and cited Barca as a shining light !!!!

  • sirjasontoon

    Jul 8, 2010 at 1:00 PM

    Comment #3

    Yup and they are spending £70MILLION in this transfer window…doesn’t sound like a club on it’s backside to me.

  • Chris F

    Jul 8, 2010 at 1:10 PM

    Comment #4

    it’s easy to spend money when it’s not yours and youre not financially culpable for paying it back though, just ask freddy shepherd.

  • Mags

    Jul 8, 2010 at 1:33 PM

    Comment #5

    Hmmmm I hope Messrs Blatter and Platini are paying heed to this shambles at Barca; their attention is usually concentrated solely on the English game.

  • roy cropper

    Jul 8, 2010 at 1:41 PM

    Comment #6

    let’s all give – fat chops – a pat on the back for not ruining us like – the barcelona club.

    and in reality – the barcelona club – will probably win everything in sight next season while – the newcastle club – will probably get relegated and fold like a pack of cards.


  • Superboy79

    Jul 8, 2010 at 1:47 PM

    Comment #7

    No, I would rather be Barcelona then NUFC at the moment. Even in a worst case scenario no banks dare to send them out of business, and they will generate enough income later to be out of trouble even if they have to sell one or two of their many star player assets.

    Barca has a much better Youth Policy than NUFC (Just look at all the young Barca players in the Spain national team), the generate more income due to their success and the priorize to spend money on players than to save money and risk a relegation battle as we risk at the moment.

    The best team in Europe spend a lot of money on transfers, get the best young players to their academy due to their success, and generate more income due to their success. MA tried to save money and make a profit in every transfer window sending us into chaos in August 08, and relegation in April 09. After keeping some key players and buy some more in January we are back in the PL. Investment in players. Now it is time to invest to stay there, and not hide behind bullshit as Youth Policy as an excuse for not buying players we need for this. Hopefully he has learn from his mistakes, but we probably need a rich owner to be able to compete with Barca ever again.

  • John

    Jul 8, 2010 at 2:12 PM

    Comment #8

    Ture, Id love to see how much Arsenal outlay for the scouting of players either on transfers or for their academey they rarely make a cock up when bringing in players, theres notting they dont know bout a player b4 they put their hand in their pocket to sign them. Unlike us who jump on a plane once or twice and then spent millions on him based on this. I once heard Arsenal scouted Fabergas 160 times b4 they signed him as a 16 year old. How much did that cost? but look at the player they have today, and the return they will make on him. Fail to prepare is preparing to fail.

  • The Carnivorous Badger

    Jul 8, 2010 at 3:07 PM

    Comment #9

    ‘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.’

    Ed – Look at the Barca team, several of them are from Barca’s youth academy/bought cheaply:

    Fabregas (alright, they sold him to Arsenal)
    & more.

    Barca gave one of the best youth academies in the world.

  • geordieal

    Jul 8, 2010 at 4:10 PM

    Comment #10

    The most worrying thing about this is they have soo many home grown players, yet still in soo much debt. How? Where will the likes of Chelsea and man city be without their rich owners. Looking forward to the day when they decide to leave with their cash so they will be well and truly screwed.

  • northernfacing

    Jul 8, 2010 at 8:41 PM

    Comment #11

    Barca actually pay a lot of money out buying the best young players from Europe and South America – granted not 50m on 1, but still many millions each year. They do also bring lots through their own academy, but don’t get dragged into believing all those mentioned in comments above were free or even cheap, they weren’t.
    You may not like it, but Ashley has a sound business model in place. He hasn’t made a profit from owning NUFC, he’s still 100’s of millions in the red – all the financial data clearly show that.
    Portsmouth are an example of where we’d be without him buying the club. Liverpool, Manure would be the best case scenario if FFS was still throwing money we don’t have around the spanish flesh pots.
    Another year or two and all clubs will be looking to move to where the toon are – accept it, and support he lads!

  • Otter

    Jul 8, 2010 at 9:41 PM

    Comment #12

    It’s hard to tell how much of this is posturing. Rosell is the new president of Barca, replacing Joan Laporta, who has presided over the recent brilliant run by Barca since 2003, so Rosell has huge shoes to fill. The two have had a long-running feud, and it’s very possible that Rosell is just trying to embarrass the outgoing President by suggesting that Laporta had not managed the finances well.

    Another likely possibility is that this is a way to show manager Pep Guardiola that there’s a new boss. Guardiola was behind the signing of Chygrinsky for €25M, and then hardly used the player. Rosell can demonstrate his power, put Guardiola in his place, bring in some cash, make the previous administration look foolish, and do it all without starting a serious fight over a core player.

    Laporta is expected to move into politics, using his success at Barca as a platform, and Rosell has every desire to undermine that, too.

    I think this is political propaganda aimed at Barca members and Catalonians, not an actual sign of trouble.

  • Sav

    Jul 9, 2010 at 3:13 AM

    Comment #13

    You’re so right.
    How glad I am to be a Newcastle supporter with a tightwad owner. an ex-casino boss for a General manager, and sensibly-priced lads the likes of Ryan Taylor to score from free-kicks and Smudger to give them away.
    I don’t want to run down our players one by one, or to point out at length the shambles that has led us to be relegated below Bolton, Wigan, Stoke, Hull, Brum and Fulham, playing the likes of Scunthorpe and Preston on a weekly basis. Nor to list the failures and embarrassments, the court cases, the managerial expletives, the cheap shirts, failed sales and going round to the big clubs with a begging bowl to see if they have one or two talented kids we could borrow that they don’t need.

    Newcastle is a dysfunctional club, playing dull, moribund football, hoping to hoof and harry our way to avoiding relegation in the coming season. That is the measure of our ambition.

    And you have the cajones to compare us favourably against the most progressive footballing side in the world, Barcelona? Have you forgotten why we all love the game? What does it matter to us fans who pay our money to watch, whether the owner made a profit this week? If we could be watching half the calibre of football routinely dished up at the Nou Camp, we’d think we’d died and gone to heaven.
    Barca won’t go bust. Their only concerns are to win and to play beautiful football. The last man to have those ideals for us got forced out by the corrupt and disgraceful behaviour of our Laurel and Hardy management team.
    So, no, Ed, I don’t look at Barcelona and thank the Lord that we’re us.


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