Audit shows Barca was technically bankrupt

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MADRID, Oct 6, (AP): Barcelona was technically bankrupt when president Joan Laporta took over earlier this year, the club said Wednesday. Barcelona CEO Ferrán Reverter presented a grim picture of the club’s financial situation while releasing the results from a Deloitte audit that started after Laporta arrived in March following the resignation of former president Josep Bartomeu and his board of directors last year. Reverter said the audit concluded that “there have been serious administrative deficiencies” during the administration of Bartomeu, who in the past has denied being responsible for the team’s current financial struggles. Reverter said the new administration found debts and future liabilities of 1.35 billion euros ($1.55 billion).

“There was no operating cash fl ow as the club struggled to pay all the salaries,” he said. “There was an urgent need for refinancing.” He said the new administration had to fully restructure the club’s debts and drastically reduce its payroll to start getting back in shape, which was one of the reasons the club couldn’t give Lionel Messi a new contract. Messi eventually signed for Paris Saint-Germain. Reverter said the club will bet on the youngsters from Barcelona’s famed “La Masia” academy for its future success. Barcelona closed the 2020-21 financial year with 481 million euros ($554 million) in losses “caused by both falling revenues and the inability to contain spending.” Revenues were at 631 million euros ($728 million), “well below the 828 million euros ($955 million) set in the budget,” the club said. The drop in revenues compared to the previous year was 224 million euros ($258 million), while expenses increased to reach a record figure of 1.14 billion euros ($1.32 billion).

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