FC Barcelona released the details of how the financial year of 2019/20 went for the club. Here is a brief look at the numbers released by the club.
FC Barcelona was not immune to the impact of Coronavirus. Its consequences have had major effect on entire sports industry in general. Almost all clubs are facing financial issues and are trying to cope up with the ongoing pandemic.
According to the report released by the club, FC Barcelona has experienced a drop in revenue. The operating income figure of 855 million euros in the year 2019/20 represents a reduction of -14% compared to the 990 million euros for the previous year (decrease of -135 million euros) and -18% below the budgeted 1.047 billion euros.
The most affected area in terms of loss of revenue is the Commercial Area, which suffered a loss of 297 million in revenue (-9% compared to the previous year) and has suffered an estimated impact due to COVID of -72 million, among other reasons, due to the inability to close certain commercial agreements that were at an advanced state of negotiation before the pandemic (-37 million), as well as the losses associated with the sale of products in the club’s official stores (-35 million). Operations of the stadium and other venues as well as media and TV rights revenue have also experienced a drop of €67m and €35m respectively.
Report shows a drop of 2% in expenses of the club. Dropping from 973 million to 955 million euros thanks to the application by the club of measures to control and reduce losses and offset the loss of revenue due to the pandemic, and these resulted in savings of 74 million with respect to the estimated 1.029 billion costs in a scenario without Covid-19. The main reason for the drop in expenses is the salary cut which was received by both the sporting and non-sporting staff.
Management expenses dropped by -10%. This variation is due to the decrease in some expenses as a direct consequence of Covid-19 of 32 million (games played behind closed doors, decrease in travel, cleaning, etc.), as well as the efforts made by the club to reduce the economic impact of the pandemic.
The net debt on 30 June 2020 was 488 million euros. Taking into account how the total investment made in the development of the Espai Barça project is 109 million euros, the debt adjusted according to the FC Barcelona Statutes is 379 million euros, and the Debt/EBITDA ratio as stipulated by Article 67 of those Statutes is 3.64, above the maximum limit established of 2. However, without the outbreak of the pandemic, the club believes that this debt would have been around 363 million euros, which following deduction of extraordinary investments would be 254 million euros.
Over past 10 years, the club has spent 1.682 billion euros in player signings while received 944 million euros from the sales of players.
Accumulated capital investments since the 2010/11 season amount to 194 million euros, which added to the 109 million euros invested in Espai Barça and extraordinary projects mean the total capital investments for the last 10 years stand at 303 million euros.
In summary, since the summer of 2010, minus the effect of Covid-19, 96 million net worth (193 without Covid-19), a net investment in players of 738 million (74 per season) and 303 million in equity investment have been generated.
The figures of the 2020/21 budget are yet to be closed and approved but Jordi Moix did present an estimated figure of 791 million euros of expected ordinary income.
2020/21 financial year foresees great challenges with a drop in revenue of 199 million euros compared to the last year without Covid-19, which featured revenue of 990 million euros.