When Robert Lewandowski put pen to paper on a lucrative three-year contract with FC Barcelona this summer, many in the football world raised their eyebrows.
It wasn’t the fact that the 33-year-old is reaching the end of his career – after all, Lewandowski has been in stunning form this year. It was more down to the money involved. A deal potentially rising to 50 million euros, not to mention the striker being one of the club’s top earners, has got some people scratching their heads over how the club can afford it given their awful financial situation.
However, the club has found a route to justify new signings, at least in the short term.
Here’s a look at their funding options, and the big names they’ve already brought in this summer.
How is Barcelona funding the new signings?
Barca’s critical debt problems have forced club leaders to get creative with their fundraising. Their main method involves a three-step process where they ‘unlock’ future earnings to use now, rather than several years down the line.
The club took the first step at the start of the summer when they sold 10% of their future TV revenue to American investment company Sixth Street.
The second step came sooner than expected and saw a further 15% sold to the firm, meaning they get 25% of Barcelona’s TV income for the next 25 years.
Together, the two deals, or ‘levers’, will bring in 522 million euros, which will not only ease the severe financial pressure the club is under, but will also help make them a force in the transfer market for the next couple of seasons.
Other revenue streams
The club is also active in the cryptocurrency world, where it has become commonplace for online businesses to accept payments in digital cash.
However, Barca differs from these: they award virtual club tokens which are powered by blockchain technology. Like Bitcoin and Ethereum, these tokens fluctuate in value, meaning the fan can earn or lose money, as well as spend it in the club virtual store.
Finally, there are many other small incentives designed to engage with fans. Members get the chance to vote on important club decisions once signed up, and there are rumours that new sign-ups will get better perks. One being a small amount of money in your account just for registering – a tactic similar to no deposit casino bonuses – or a payment in the club’s crypto tokens mentioned earlier.
Club officials hope that these revenue streams are enough to fund the raft of new signings ahead of the new season, but what about these incoming players? Will they help power Barca to their previous heights, or become yet another financial millstone around the club’s neck?
Robert Lewandowski
Barcelona may be paying out top dollar for the prolific Polish forward, but they will be getting football’s most valuable currency in return: goals.
Lewandowski has shown no signs of slowing down in his 30s, with his already incredible goalscoring record improving as he ages. His last three seasons have all seen him notch higher tallies than any of his previous campaigns, with an incredible 41 league goals last season alone, a Bundesliga record.
If the Pole’s goals fire Barca to the title, then it will be money very well spent.
Raphinha
After two excellent seasons in the English Premier League, Raphinha comes to the Camp Nou full of confidence and, crucially for Barca, able to play on either wing or even up front.
While his fee could turn out to be even higher than Lewandowski’s if its add-ons kick in, the club will feel they’ll be getting good value for money with Raphinha set to hit his prime over the course of the contract.
Franck Kessie and Andreas Christensen
Barca has also been smart with Bosman transfers, snapping up two of the hottest free deals out there this summer.
Franck Kessie was the midfield engine that drove Milan to the Serie A title last season, while Andreas Christensen offers top level experience at the back and is young enough to be a part of the team for the next decade.
The two free signings could both be important components of the next great Barcelona team and haven’t cost the club a cent in transfer fees.
The next steps
Half a billion euros would be a huge amount for virtually every football club across the planet, but in FC Barcelona’s case, it may not be enough.
It’s highly likely that the club will trigger the third and final stage of their plan soon, which will see them sell almost half of their merchandising branch (BLM), their audio-visual content producer Barca Studios, plus the rights to the club metaverse including their NFT stock.
While this will likely result in hundreds of millions of euros in return, several financial experts fear the club will be selling itself short given its huge potential in cyberspace.
Also, while the club will be stockpiling money now, it will lose several sources of future income when it needs it the most.
“Football does not wait for anyone” is what President Joan Laporta said in a recent TV interview, yet neither will the club’s creditors if things don’t go to plan.
