La Liga president Javier Tebas explains how Barcelona’s wage limit increased sharply: ‘Club can repay its debts’
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Barcelona have received a major boost in their financial position after La Liga revealed the latest spending limits for Spain’s professional clubs.
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The Blaugrana’s wage bill has risen from €432 million following last season’s winter transfer window to a current figure of €582.769 million.
The increase shows the club’s improving revenues and efforts to bring their structural costs back in line with its financial capacity.
Tebas points to Barcelona’s revenue and debt capacity
Recently, La Liga president Javier Tebas and chief corporate officer Javier Gomez addressed Barcelona’s situation while explaining how the club has managed to increase its spending limit.
Tebas stressed that Barcelona’s debt should not be considered without also looking at the club’s ability to generate revenue and meet its financial obligations.
“I often read that Barcelona has, I don’t know, how many million in debt, but what’s also important is the revenue and your ability to repay that debt.
Javier Tebas has explained Barcelona’s current situation. (Photo by Arnold Jerocki/Getty Images For Sportel)
“You have to look at the situation carefully,” said Tebas.
He added, “Barcelona has a billion in revenue. It has the ability to repay its debts and to improve its financial position.”
Simply put, the club’s financial picture is not defined solely by their outstanding debt, with revenue generation playing a major role in determining its capacity under the league’s financial controls.
Barcelona recovering from years of financial distress
Meanwhile. Gomez offered more detail on why Barcelona’s limit has increased, pointing to both improved revenue and a better alignment between the club’s structural expenses and its means.
The La Liga executive explained that Barcelona “was coming out of a difficult situation; the limit has risen because it has more revenue and its structural costs are now more in line with its means.
“It has been recouping some losses, and that has raised its limit. It has been penalised for years and has been recouping those losses.
Barcelona have made significant progress under Joan Laporta. (Photo by Eric Alonso/Getty Images)
“Above all, it is increasing its revenue and transfer fees for players, and that is what is raising its limit.”
Barcelona’s progress is therefore not just the result of one financial measure. Increased income, recovering losses and transfer-related revenue have all contributed to the improvement.
Barcelona complying with 1:1 rule
Lastly, Gomez also confirmed that Barcelona are complying with La Liga’s 1:1 rule when making signings, an important development given the restrictions that have shaped the club’s transfer activity in recent years.
He does not expect Barcelona’s return to their renovated home next year to have a significant immediate effect on the club’s finances either.
“Ticket sales figures at Montjuïc are very good, and there are other areas where revenue is generated, or costs that have not yet been incurred.
“Obviously, they’d be much better off in the new stadium. They’ll be planning to deal with that situation,” he concluded.
Source: Mundo Deportivo