© Unidad Editorial Información Deportiva, S.L.U. There have been rows between the players and the board over wage reductions. On April 21, a group of eight club members, under the name "Dignitat Blaugrana," reported Bartomeu and his board to the police for misuse of funds and corruption as part of the Barcagate affair. La Liga's latest salary caps revealed that Barca need to cut last season's €671m wage bill down to €347m or they risk falling foul of UEFA's Financial Fair Play rules, as years of overspending on signings (Ousmane Dembele €145m, Philippe Coutinho €160m, Antoine Griezmann €120m) and overpaying players has finally caught up. Barcelona face a first-leg deficit in the Copa del Rey and the election of a new president in the wake of the arrest of former president Josep Maria Bartomeu. ", Bartomeu will have to return to court to defend himself, although he appeared relaxed when he was freed on Tuesday, stopping to pose for selfies with supporters. Barca's players, meanwhile, through a statement said they were "surprised some people at the club want to put us under so much pressure" when they were always happy to play a role in helping the club cut costs. - Messi and Barcelona: How they fell apart, and what's next (Photo by Fran Santiago/Getty Images) This is a straightforward method to generate money in order to tackle the club’s debt. The club are hoping to be able to delay those payments until at least June 30 of 2021 and, while some creditors have approved an extension, Barcelona continue to negotiate with others over a deferral of payments. "I knew Barcagate would be the beginning of the end from the very first minute," Emili Rousaud, who resigned as vice president last April due to discrepancies with Bartomeu, said on Monday. The motion received over 20,000 signatures from fellow members -- the club have around 141,000 members in total -- meeting the threshold for a referendum on Bartomeu's future. The competition was reformatted to a single-game elimination in a "bubble" setting, but Barcelona couldn't keep up with the Bundesliga giants, falling behind 1-0 after 4 minutes and then 4-1 after 31 minutes. Should he stay or should he go? Former Barcelona player and executive Eric Abidal explained in an interview with the Telegraph how the club’s ex-president Josep Maria Bartomeu rejected the chance to solve their financial crisis back in 2019. "We have maximum respect for the police's actions and also for the presumption of innocence," said Laporta, the former Barca president who hopes to succeed Bartomeu when Barca members vote on Sunday. the arrest of the club's former president, Stream ESPN FC Daily on ESPN+ (U.S. only), ESPN+ viewer's guide: Bundesliga, Serie A, MLS, FA Cup and more, a row between Messi and former sporting director Eric Abidal, Sources: Bartomeu arrested in Barcelona raids, Sources: Barca intensify interest in striker Isak, Should Lionel Messi stay at Barcelona or join Man City or PSG? Letting Lionel Messi join another club in the summer could be the best possible solution to Barcelona's current financial crisis. - Lowe: Messi, bad blood and a "burofax". Ivan Rakitic (Sevilla) and Arturo Vidal (Inter Milan) left for little return. Ronald Koeman, who would later take the job, said "not now." Backup option Quique Setien eventually came in, but within the month Barca had lost to Valencia in the league and been knocked out of the cup by Athletic Bilbao. Club legend Xavi Hernandez said "no." If they manage that, the week could end with a cup final, a new president and a fresh start. Barcelona ended the 2019/20 season with a net debt of 488.4m euros and the club are negotiating a delay of those payments with its creditors due to … And the wealthiest of the clubs have failed to stay aloof from the financial crisis. Transfer dominoes: How could one big move impact the window? They have leaped from one self-inflicted mess to another, the pandemic exposing cracks that had been covered up for years, although they first began to appear when manager Ernesto Valverde was sacked. Management committee set to decide Barcelona's future, Barcelona to argue that Setien didn't follow through on his promises to avoiding paying him what they owe him. Laporta, the club's president between 2003 and 2010, is the favourite, with Font expected to be his closest challenger. This figure is broken down as follows: 265m euros of debt to credit institutions, 2.5m euros in obligations and other negotiable securities, 164m euros in debt to sporting personnel and 298m euros in other debts. Watch Lionel Messi's Copa del Rey action as his time at Barca may be coming to an end. Meanwhile, Barca are slowly improving under Koeman. Although if the last 14 months have taught us anything, it's that you can never be sure when you've hit rock bottom. Messi sent the club a "burofax" -- a service in Spain for sending documents where it is necessary to prove that the document was delivered and also the contents of that document -- informing them of his intention to leave for free, per a clause in his contract. "But we deeply regret what's happened because it hugely damages the club's image and reputation. Directors have quit. In the end, six resigned and one of them -- Rousaud -- alleged "someone's had their hand in the till" as it became clear for the first time the scandal could be more than just a few subtle smear campaigns. The Spaniard opened up on the Barcelona debt, which amounts up to €470 million but Cardoner stated the debt is by all means manageable. The stats say otherwise. Barça Women are 2019/20 league champions after it was decided that all competitions are to come to an end in women's football due to the COVID-19 … The club have debt of around £720m and are suffering from lack of tourism; Barcelona want to reduce their £1billion wage bill – the largest in the world Chelsea fancied vs. Bayern, Super League collapses: How fan revolt ended English clubs' breakaway, Champions League Swiss Model revamp: All you need to know, Would a Super League really be that super? For the sake of this article let’s just use the figure of €1.2 billion for Barca’s current debt. Hindsight suggests Valverde, who guided Barca to back-to-back La Liga titles and left them top of the league, was perhaps the only one holding things together. At first, it seemed a simple case of Bartomeu and his board contracting a third-party company to smear people not aligned with him on social media. The standout point of the document is where the club's liabilities are listed, as they amount to 1.173 billion euros, and a short-term debt of around 730 million euros. In fact, the club still owes Liverpool 93.3 million for the Brazilian, who has struggled so far. It's the latest twist in a saga that began in early 2020 when it was revealed Barca had paid a company, I3 Ventures, to smear current and former players, including Gerard Pique and Lionel Messi, as well as club presidential candidates such as Joan Laporta and Victor Font. The club also threatened to take legal action against Cadena Ser, a threat they haven't yet formally pursued. Barcelona were expecting to make 56m euros this campaign with a capacity of 25 percent in February and 50 percent from May onwards, although that now does not appear likely. With a Copa del Rey semifinal second leg to come against Sevilla on Wednesday and a new president set to be elected on Sunday, Barca will hope the arrests prove the closing chapter to what has been a truly chaotic 14 months both on and off the pitch. The whole first-team squad eventually agreed to a 70% wage cut while football was halted and also pledged to make an additional contribution so that none of the non-sporting staff's earnings would be reduced for as long as Spain remained in a state of emergency. The most recent accounts, dated October 2020, revealed €488 million of net debt and gross debt of almost €1.2 billion. Barcelona's rising debt makes Messi exit 'viable solution' | Photo Credit: AP Arsenal's lacklustre loss shows why anti-Kroenke sentiment runs deep, UEFA Women's Champions League semifinals: PSG to best Barcelona? Setien was sacked after that game -- his fate had already been sealed when Madrid won the league in July, sources told ESPN -- but even that was mishandled. The scramble to replace him was played out through media leaks from the club and quickly became a shambles, as a series of candidates rejected the offer. Barcelona are in a huge financial crisis. Bartomeu asked four directors to resign following disagreements over issues related to Barcagate. I3 Ventures, registered in South America, had a contract with Barcelona for "monitoring services on social networks," according to the club. Valverde's exit also provided the backdrop to a row between Messi and former sporting director Eric Abidal. The biggest concern is that a total of six payments to I3 Ventures all came up just under €200,000, as anything higher than that in a lump sum would have to be approved by the board. In La Liga, they're five points behind leaders Atletico and have played a game more. Why not find a new team? (He's now thriving as the top scorer for Atletico Madrid, who are leading La Liga.). "It's shocking that, with the club's money, the board of directors have targeted their own members, first-team players, Catalan social entities and media," Font said at the time. Transfers of Ousmane Dembelé and Philippe Coutinho also contributed to the inflation. (2:05). Inside story: How Barca fired Valverde, signed Setien. Barca in turmoil: The events leading up to Bartomeu's arrest (2:05), Barcelona crisis: Wantaway Messi; Bartomeu arrested; financial chaos; no trophies. Koeman replaced him, Barca's third coach in eight months, but his appointment was overshadowed by Messi, the club's record scorer and one of the game's all-time greats, trying to force a move out of the club after 20 years of loyal, storied service. Barcelona on the verge of bankruptcy: €1,173m in debt, €730m in short-term By Colin Millar - 25 January 2021, 19:35 The financial figures at the heart of Barcelona news are increasingly alarming and a report in El Mundo has given more context to the numbers, claiming … Executives blame the pandemic, but many of its biggest problems, including its enormous debt to Lionel Messi, are its own fault. Barca, rudderless for the last four months, will finally elect his successor this weekend. They were the only three from nine candidates to obtain the 2,257 signatures needed to make it to polling day. However, the crisis is expected to lower the ticket revenues from next season onwards, which would further affect the Barcelona debt. It wasn't the treatment of Suarez or the financial problems that provoked the end of Bartomeu, though, but Messi's push to leave. The French admitted having introduced a company to the club which could have invested a lot of money to sanitize the club’s complex […] On top of that, the club also has a 500 million euros short-term debt which needs to be paid back by 30th June. Barcelona's short-term debt stands at 730 million euros Koeman: We have all helped Barcelona with the pay cut Barcelona have serious financial problems right now. A documentary charting Barca's destruction since 2020 would be pure box office, starting with the dismissal of Valverde after the Spanish Supercopa defeat to Atletico in Saudi Arabia. The club is reportedly under a debt of 1.2 billion euros at the moment. However, Bartomeu resigned on Oct. 27 before it got that far, claiming it would be irresponsible to hold a referendum during a pandemic. Barcelona’s management should push for a 30% wage cut from these players. Barcelona lost 4-1 to Paris Saint-Germain in the first leg of the round of 16 of the Champions League. A week later, Spanish radio station Cadena Ser first revealed the details of the case that has become known as "Barcagate." Our experts break it down, The club also threatened to take legal action, these wage negotiations were played out in the media, alleged "someone's had their hand in the till", Messi and Barcelona: How they fell apart, and what's next, announced he would stay for the final year of his contract, launched a motion of no confidence against Bartomeu. - ESPN+ viewer's guide: Bundesliga, Serie A, MLS, FA Cup and more, During that time, Barcelona have been through three managers, gone trophy-less for the first time since 2007-08, been humiliated 8-2 by Bayern Munich in the Champions League, battled with Messi over his future and forced striker Luis Suarez out of the club through the back door. The president, Bartomeu, stepped down in October, although his resignation was unrelated to Barcagate. It is no secret that the club has accumulated a lot of debt during Josep Maria Bartomeu’s time as president and a figure of 1.2 billion euros is what the club owes others in debt. "You didn't deserve for them to kick you out like they did," Messi wrote on Instagram when Suarez's move was confirmed. By this stage, the club's executive board were fighting among themselves as well as with the players. It's also true that few were swift to note the figures coming from Real Madrid. Dropped points, division between the players and the coaching staff and Real Madrid's impeccable form saw the league title slip away. After a Clasico defeat to Real Madrid, the coronavirus pandemic shut down football and the board and the players faced off over pay cuts. Barca TV+. The coronavirus pandemic has accelerated the club's financial crisis, and gross debt has risen to nearly €1.2 billion, with net debt standing at €488 million. Here's how the saga unfolded, culminating in the arrests and police raids this week. Once again, these wage negotiations were played out in the media, with the board leaking that the players weren't prepared to adjust their salaries. In June 2020, Barcelona launched its premium streaming service called Barca TV+. - Stream ESPN FC Daily on ESPN+ (U.S. only) That … Beyond the damage to their reputation, Barca won't be charged or face any punishment for the Barcagate scandal; the judge has listed them as an "affected party.". Barcelona's debt doubles The figures highlight a significant economic drop for the club. Premier League after Super League collapse: Big Six facing legal issues? Barça gained 192 million euros less than they had budgeted for. Bartomeu and the club fought against the clause and Messi eventually backed down, saying he was not willing to take the "club of my life" to court. While Madrid and Barcelona unsurprisingly top the list with debt (total liabilities) of €590 million and €578 million, seven other clubs have debt over €100 million, most notably Atletico Madrid €514 million, Valencia €382 million (even after selling stars like David Villa, David Silva and … Todos los derechos reservados. Super League fallout: UEFA, Champions League reform again? Can Premier League 'Big Six' fix the mess? Todos los derechos reservados. FC Barcelona planned to reduce the debt to 200 million, but the opposite occurred. It's alleged that Barca paid them an inflated price -- more than €1m -- for that service, and there are also questions about why they wouldn't have used a local company that would have charged far less. Suarez left for a direct rival, Atletico. Barcelona have already lost €154 million as a result of the coronavirus crisis, according to a report in La Vanguardia. There are also allegations the club had similar contracts and payment structures set up with other companies. Following police raids at five locations across the city to seize evidence and documentation, including at Camp Nou, Bartomeu was one of four men detained, facing allegations of misuse of funds and corruption. Football returned, providing a distraction from the club's off-pitch issues, although that respite was fleeting as Setien's team began to mirror the turmoil in the boardroom. At first glance, Barcagate seemed to be a simple case of Bartomeu wanting to improve his image by attacking his critics, but the real exposé, via investigations carried out by journalists, the police and internally over the last year, is financial irregularity. 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