Barcelona’s deep financial crisis explained: €200 million wage bill reduction expected in the summer

Barcelona might be at the top of the La Liga table right now. But, they are still in a deep financial mess. This past summer, they activated multiple financial levers – selling assets of the club for a cash injection with the option to buy them back later. 

Their wage bill currently stands at €655 million, and will have to be reduced significantly in the summer. La Liga is expected to hand them a permitted wage bill of €450 million for next season. Which means that there needs to either be a reduction of €200 million in the bill, or the club needs to increase their income to make up for the amount. 

Barcelona in deep financial trouble ahead of 23/24 season 

For the coming season, Barcelona will not be playing at Camp Nou either. They have decided to renovate the stadium and increase its capacity. As a result, they will play their games at the neighbouring Olympic Stadium while their ground is renovated. 

Their original renovation plans have been scaled down, and Turkish contractor Limak has been assigned the job. Local contractors believe that the main reason why he was given the contract were unrealistic completion timelines and budget. 

However, the total debt for Barcelona will double to €3 billion as a result of their investment in the new stadium. This amount will be paid back over 35 years, once either Goldman Sachs or Morgan Stanley can supply the loan. 

The first team is expected to return to the Camp Nou in December 2024, with only 70 percent capacity. Till that time, they will lose a total of €94 million by playing at the Olympic Stadium. 

With the European Super League also expected to be stopped in court, things don’t look good for the club’s finances. As a result, Barcelona’s plans to re-sign Lionel Messi and add new defenders and attackers seems highly unrealistic as things stand. 

The team will struggle to register the new contracts of Gavi and Ronald Araujo already. And they might be forced to sell some of their talented youngsters to raise funds if nothing else works.