Barça meltdown

comment by Rosso out here drippin’ in finesse (U17054)
posted 35 minutes ago
comment by it'sonlyagame (U6426)
posted 29 minutes ago
Yeah, this. The wage cap isn't an absolute number, but revenue-linked. As revenues increase, so does the wage cap - although I'm not sure of what wages-to-revenue ratio is applied.

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I thought it was related to operating profit rather than revenue?
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You may well be right, I haven't looked into it in any great detail.

That said, however, it would surprise me somewhat, because the big 2 in their accounts generally only aim to break even - reason being that the 'socio' ownership model means they don't pay out dividends and that practically all available funds are reinvested into the club.

Barca have gambled it all away. Even if this comes off, will it really be worth it? It would’ve been better to play it safely and sit out for the next few years and get their books in order. Instead, in order to keep up with Madrid, they’ve decided to treat this like a casino.
Xavi has a lot of pressure on him.

On other hand, Madrid need Barca to make a come back to make most of their brand

comment by it'sonlyagame (U6426)
posted 3 hours, 55 minutes ago
comment by Rosso out here drippin’ in finesse (U17054)
posted 35 minutes ago
comment by it'sonlyagame (U6426)
posted 29 minutes ago
Yeah, this. The wage cap isn't an absolute number, but revenue-linked. As revenues increase, so does the wage cap - although I'm not sure of what wages-to-revenue ratio is applied.

----------------------------------------------------------------------
I thought it was related to operating profit rather than revenue?
----------------------------------------------------------------------
You may well be right, I haven't looked into it in any great detail.

That said, however, it would surprise me somewhat, because the big 2 in their accounts generally only aim to break even - reason being that the 'socio' ownership model means they don't pay out dividends and that practically all available funds are reinvested into the club.
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Yeah. I thought the formula was (very basically) akin to operating profit - wages > 0.

In other words, you can’t be spending wages to get yourself into debt.

i really dont get all this. if they cant lower their wage bill they cant register their new players. what happens with these players? do they practice with the first team?
when can we get raphina back?

I’m not going to pretend to have the first idea about accounting, but I’d have imagined wages were a part of the operating expenses. Very roughly revenues - expenses = profit is what I’d presume.

That aside, if they weren’t allowed to incur debt and the wage caps have been in place for at least six or seven years, then in addition to the impact of Covid, the remainder of the debt would pre-date the salary cap. Something doesn’t seem right, but as I said, I don’t really have an understanding of how all these numbers work.

comment by it'sonlyagame (U6426)
posted 20 minutes ago
I’m not going to pretend to have the first idea about accounting, but I’d have imagined wages were a part of the operating expenses. Very roughly revenues - expenses = profit is what I’d presume.

That aside, if they weren’t allowed to incur debt and the wage caps have been in place for at least six or seven years, then in addition to the impact of Covid, the remainder of the debt would pre-date the salary cap. Something doesn’t seem right, but as I said, I don’t really have an understanding of how all these numbers work.
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Dunno if this will help us

https://mobile.twitter.com/swissramble/status/1419540806608867329?lang=en

So been looking it up, and it appears to be worked out using each club's budget for the season, and is the figure that remains after deducting debt servicing and structural costs (facilities, staff outside the first team setup*, etc.) from the revenues. The wage cap covers 1st team players plus manager, assistant manager and fitness coach (I presume this also covers additional first team coaches).

Operating profit would seem to be revenue minus expenses, before tax and interest payments, and would therefore also include the player wages as part of the calculation.

A few of Barça’s reported outstanding obligations:

- All debts to clubs for transfer fees combined (*prior* to this summer’s spending) amount to a figure of more than €126 million, owed to 19 different clubs

- Gerard Pique is due over €80m (including tax) in deferred wages and obligations to the end of his contract (two seasons)

- De Jong is due between €89m and €109m (including tax, depending on clauses being triggered) over the four remaining years of his contract

- Busquets is owed a €20m *lump sum payment* this season in addition to his salary in respect of unpaid wages

- Messi is still owed something in the region of €60m by the club

Nothing much to worry about then

comment by it'sonlyagame (U6426)
posted 1 hour, 37 minutes ago
Nothing much to worry about then
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Laporta will be telling Tebas that petty cash will cover it.