Barcelona fear bankruptcy as they extend deadline on talks of salary reductions

Barcelona have extended the deadline on imposing a wage deduction on their squad by one week after negotiations failed to find agreement, report Catalan based media outlet Esport3.

The report claims that there is now a pressing urgency that the Catalan giants must drastically reduce costs by January or face bankruptcy, with a new to reduce their wage bill by a notable 30 percent.

Thursday was supposed to be the deadline for the club to impose a salary reduction but despite talks ongoing with their players and staff, there is not yet an agreement.

The club recently confirmed contract extensions for  defender Gerard Pique through to 2024, while goalkeeper Marc-Andre Ter Stegen has penned a deal through until 2025 while both Clement Lenglet and Frenkie de Jong have extended their stays through until 2026.

These deals included a temporary salary adjustment – which likely indicates that the four have agreed reduced salaries in the short-term but will be reimbursed with an improved deal in the long-term.

The club accounts show that Barcelona’s debt had more than doubled during the 2019-20 campaign amid extremely worrying financial results.

The club’s financial figures, as outlined by Marca, show that the debt at the club has risen from €217m in June 2019 to €488m in June 2020.

Whilst the club’s first-team squad has been slimmed down this year, with a reported €80m off the wage bill, there is still a worrying financial outlook for the club.