Barcelona ask major banks to delay debt repayments to avoid bankruptcy

An uncertain and worrying financial situation has been at the forefront of Barcelona news in recent months and a report published on Friday in El Confidencial may add further alarm.

It is claimed that the Catalan giants have asked companies Goldman Sachs, Allianz, Barings, Amundi and Prudential to delay outstanding debts so that the club can avoid potential insolvency.

The club are said by the report to have requested from the banks and investment funds a dispensation for failing to comply financially, which would mean that there has been a non-payment of €200m.

Barcelona are said to have a negative working capital of €601.8m and have imminent debts of €300m, which they have requested to be delayed.

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 late last year, showed 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.

Interim club president Carlos Tusquets gave a wide-ranging interview to Catalan radio station RAC1, with quotes carried in full by Marca, claiming that the club were unable to pay players for their pre-agreed January salary.

The club’s presidential elections have been delayed due to the Covid-19 pandemic, adding another layer of uncertainty and delay to the situation.

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