A Barcelona executive has contacted UEFA to use future broadcast revenue from the Champions League as collateral to apply for a loan.
In an investigation into the finances of Barcelona, the athlete I learned that Barcelona had asked for loans to mitigate years of poor decision-making in the transfer market and overpayment of players’ wages, exacerbated by the COVID-19 pandemic which has reduced business and match-day income. It is understood that this preceded the presidency of Joan Laporta, who was officially elected in March 2021.
Barcelona’s idea was to apply for credit from a bank and use future broadcast revenue from the Champions League to secure the loan. UEFA responded unequivocally with a “no”.
UEFA made it clear to Barcelona’s CEO that they could not use Champions League television money in the future for several years as there was no guarantee that they would qualify for the tournament every season. This is due to the fact that qualification for the Champions League is guaranteed by sporting merit, not reputation and legacy.
Understandably, the Barcelona official was really surprised by the rejection. When this week approached, UEFA said the athlete They were unable to comment publicly due to the “confidentiality of the operation.”
Barcelona has been in financial trouble for some time, with debts of £1 billion and strict controls on hiring and spending.
President Laporta recently admitted the club would activate a third “economic lever” by selling a percentage of production company Barca Studios for €100m (£83.7m, $101.6m).
At the beginning of the summer, they sold 10 per cent of their television rights for the next 25 years to Seth Street, for a total capital gain of €267m (£228m, $272m).
Last month, they activated their second lever by selling an additional 15 percent to the same company, resulting in Sixth Street taking a total of 25 percent of the club’s television rights deals through 2047.
So far this summer, Barcelona have signed five signings Frank Kessie, Andreas Christensen, Robert Lewandowski, Ravenha and Jules Conde.
The La Liga team starts the 2022-23 season at home to Rayo Vallecano on August 13.
Barcelona declined to comment on the matter.
(Photo: Getty Images)
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Via theathletic.com
