Tuesday, September 27, 2022
HomeSportsBarcelona and the coronavirus, great culprits of the millionaire losses of LaLiga

Barcelona and the coronavirus, great culprits of the millionaire losses of LaLiga

The league closed last year, corresponding to the 2020/2021 season, with about income of 3,818 million euroscompared to the 5,045 million that were registered in the 2019/20 campaign, almost 25% less.

A sharp drop that, as explained by the clubs’ employers, is due both to the break in the player transfer market as the lack of box office receipts (ticketing) due to the coronavirus pandemic, taking into account that most of the matches were played behind closed doors.

The Economic-Financial Report 20/21which LaLiga released this Tuesday, reflects that net losses stood at 892 million euros, compared to net profits of 52 million registered in the 2019/2020 season.

These are the first negative results since the 2012/2013 season, although in this case there are two main culprits when it comes to losses: the coronavirus and the extremely delicate financial situation of the FC Barcelonawhich has accumulated 58 percent of those losses (about 481 million euros).

LaLiga considers that this drop of 1,200 million in income has not translated into equivalent losses. In fact, the ebitda (the concept of results before interest, taxes, depreciation and amortization) for the 20/21 academic year remains positive (154 million euros), while 12 of the 42 LaLiga clubs (First and Second Division) managed to close the year with a negative net result despite the impact of the coronavirus on their accounts.

The 892 million negative net result only represents 74% of the decrease in income and the figure remains in 717 million if accounting provisions are discounted carried out by the board of Joan Laporta at the end of the 2020/21 financial year.

In any case, LaLiga’s forecasts are optimistic for the medium-term future. Thus, the employers of football clubs estimate that by the end of this 2021/22 campaign, there will be a negative net result again, with losses of 297 million, which represents a reduction in losses of 66.7%.

A reasonable scenario for LaLiga, which in the 2022/23 campaign will manage to stabilize its numbers and will record profits again for 2023/24, thanks, among other things, to the powerful economic injection (about 2,100 million euros) that the investment fund CVC Capital Partners it is going to carry out the different Spanish professional football clubs (all of them, with the exception of Real Madrid, FC Barcelona and Athletic Club de Bilbao, which oppose the plan).

The total income for the season that is about to end will be around 4,012 million euros, 5.1% more than the previous year, and the ebitda of 432 million, which represents an increase of 180%. As a result of all this, net financial debt remains stable and will stand at 1,948 million at the end of this season.

Recent posts