Why is Barcelona desperate to sell players? - The Times Of Country-Leading English Daily International Newspaper

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Saturday, June 27, 2020

Why is Barcelona desperate to sell players?

Times Online Reporter:
Arthur Mello is leaving Barcelona for Juventus, it is being heard in the European transfer market. Even the personal contract has become Arthur's. The announcement will come only when the contract for Miralem Pianich to go to Barcelona instead of him is finalized. Despite seeing the benefits of Juventus in this change of team, no one can find any apparent long-term benefit of Barcelona. But the desperate desire of the Barcelona board to change this team is different.Clubs adjust income and expenditure by using loopholes in some player rules. If there is a financial problem in any financial year, many people manage the danger by applying small formulas of accounting science. Arthur-Pianich's transfer is expected to fetch around 80 million on paper. But why did Barcelona, ​​who made more than a billion euros last season, have to sell players in a hurry? Why is it that in the eyes of Messi, even if the 'new Xavi' is sold, the income has to be increased?
Behind this we have to look at the history of the Spanish League in the nineties. In 1990, most Spanish clubs were incorporated into corporations. Only four clubs saw profit then. For this reason they were allowed to retain their club identity. The four clubs are Barcelona, ​​Real Madrid, Athletic Bilbao and Osasuna.
The Spanish authorities wanted to make sure that the clubs did not lose out in the future, even though they were financially supportive at the time. For this reason, arrangements were made to take personal guarantee from the board directors of the club, they have to bear 15% of the cost every year. In other words, if it is not possible to raise the budget that the club will make every year from the income of the club, then the club will have the right to deduct 15 percent of the money from the personal sources of the directors.

Now suppose a board has been in charge of the club for several years. In that case, even if they don't think about it every year. If it is seen that the profit of the club is more than 15 per cent of the budget that has been spent for the whole period of that board, then the directors can no longer think about it.

The current board of Barcelona has been in charge since 2010. Sometimes the board president changes just because of Neymar's contract. According to the Barcelona board's estimate of the club's expenses for the current 2019-20 season, it had a budget of 100 crore 80 million euros. 15 percent of it is a little more than 150 million euros. From 2010-11 until last season, Barcelona's current board profit showed 192 million euros. That means the directors had nothing to think about. For this reason, the directors did not have to give any guarantee at the beginning of the new season.But coronavirus has taken away everyone's smile this season. In the meantime, the game started but the spectators did not return to the field. As a result, the club is not only getting money from ticket sales, but also from earning money from selling souvenirs of various outlets of the club. The clubs are not able to avoid losses even by reducing the salaries of the players.
It is certain that the income that was budgeted for this season is not happening. As a result, the loss will have to be met from the income earned for so many years. Many fear that Barcelona will lose as much as 150 million euros this season.

Barcelona, ​​which has earned 192 million euros from the 2010/11 season, will be able to handle it. But the current board will be in danger.Because, when the profit of this board (42 million) comes down to 15 percent of the budget, the directors have to give personal guarantee for the rest. And if Barcelona have to see no profit or loss due to Corona in the next season, then the bidders associated with the board will have to pay 15 percent of the budget from their own 'pockets'.

As a result, increasing Barcelona's income is no longer just for the good of the club, it has become a personal matter for Barthelemy and his teammates.The term of this board is till 2021. As a result, they focus on passing that time. So they are trying their best to save themselves from this danger. There are two ways to do this; One, to reduce the budget for the next season (2020/21). Suppose the budget of the club is reduced from 100 crore to 60 crore by the board. In that case 15 percent of it will be 12 crores. Even if there is a financial loss of 6 crore 20 lakh this season, the board will not have any problem.Yet, the compensations of Barcelona players are the most noteworthy in Europe. That is the reason it is practically difficult to diminish the financial plan of the club such a great amount in a rush.
The second way is to reduce the cost of the current season. Arrange for advance profit and remit current expenses to future. That's why the Arthur-Pianich transfer will be useful for Barcelona. The transfer will show a profit of 60 million euros on the one hand, and the 80 million euros spent on the pianist on the other, which will be divided into five years of the contract.As a result, only 14 million euros will be added to the cost next season.

In the long run, it will not benefit Barcelona in terms of field performance or financially. In any case, the current board authorities will have the option to set aside their own pocket cash. Although the loss of Barcelona as a club, the current board will benefit. The board has long been accused of endangering the club and looking after its own interests. The coronavirus catastrophe has brought the matter to the forefront in a slightly naked way.

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