Barça and Real Madrid are in an economic black hole

emonseo21

Football clubs are not having their best moments at the moment, since they have been hit hard by the coronavirus like many other sectors, reducing their income to a minimum.

The two big clubs Barça and Real Madrid do not escape, although they have always been great generators of turnover at the level of Spain and even at the level of Europe and, therefore, this situation becomes more difficult for them .


The fewer matches, the less income and expenses must be reduced.
The coronavirus crisis has seriously damaged the finances of the main European clubs. Football entities like FC. Barcelona, ​​Real Madrid , Atlético de Madrid or Espanyol have already put on the table the implementation of ERTES for their sports teams and the rest of their workers.

Clearly fewer matches or the cancell  Latvia Email List  ation of these has caused a reduction in the income generated by the sale of matches, viewing rights... reducing their profitability and, therefore, their financial viability .



The effects of the coronavirus have directly attacked profits and reserves, and this means that they cannot pay the multimillion-dollar salaries and transfers of the players that have been made in recent years.

Barça's accounts are in a critical situation
The accounts of Barça and Real Madrid show different management , since Barça is more in debt than Real Madrid, but the two clubs show the great difficulties they are going through.

Both clubs have quite large amounts of debt, since Real Madrid has a net debt of million euros , while Barça exceeds it with million euros , according to the financial reports of the two clubs.

There are other factors that they share, since the lack of income has led them to go into even more debt with financial institutions and thus be able to face the multiple payments that they have to make in the short term.

Barça has the most stretched treasury of all the clubs in Spain. During this year it has increased its debt by more than million euros , after using a credit policy and other loans to remodel the Camp Nou.

On June of this year, Barça has to pay bank debts of million euros, and this endangers the club's sustainability. Seeing this, urgent measures would have to be taken for the survival of the club.

Barça is worse than Real Madrid
They have reached the point of having negative working capital , and Barça finds itself in a worrying situation with million euros . Real Madrid is well below this figure but is reaching million euros.

Working capital is the part of the company's assets financed with long-term debt. It is calculated by the difference between the assets that you have available for less than a year and the short-term debt, that is, that you have to pay in the short term.

When the working capital is negative it means that part of the company's assets are financed with resources for debts that will mature in a short period of time. This is a situation of financial imbalance, since assets such as treasury are lower than debts.

Therefore, the two clubs may have problems paying debts and could go into receivership .

Barça 's transfer debt is million euros , of which more than million euros also mature in a short time. In the case of Real Madrid, million euros of the million euros of debts it has with the players also expire in a short time.

Looking at these numbers, it is clear that during the past year the two clubs had million-dollar losses in their accounts.