Can Barcelona Afford Cesc Fabregas?
Cesc Fabregas
Beneath the gloss of providing seven of Spain’s World Cup-winning team, Barcelona’s financial problems are mounting.
The depth of their financial obligations raises the question whether they could raise the money to secure the Arsenal captain Cesc Fábregas.
Digger has received financial analysis prepared by Professor José María Gay, the head of the University of Barcelona’s economics and business unit and Spain’s foremost authority on football finance. In the document Gay presents Barcelona’s troubled 2009-10 balance sheet, which he describes as “very worrying”.
Wage costs have risen 55% from their 2008 level to €262m (£220m). By contrast the club’s stated revenues have risen 33% over the same period, meaning wages now account for almost 64% of income.
Barcelona have evidently been a victim of their own success, with the treble of Champions League, Primera Liga and Copa Del Rey wins bringing with them onerous bonus commitments.
Gay points out that the club’s short-term debt of €392m (£329m) far exceeds their working capital of €110m (£92m) and even hints there could be a risk of default during the current close season.
Barcelona have recently approached the market for another €150m (£126m) of borrowings, though it is unknown if contracts have been agreed. The Camp Nou president, Sandro Rosell, insists his club is “not bankrupt”.
Even so, Arsenal are not disposed to sell them Fábregas.
Courtesy of The Guardian
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