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How Barcelona can ease its financial situation through different revenue streams

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Photo by CRISTINA QUICLER/AFP via Getty Images

It is no secret that at the moment, FC Barcelona is under monumental debt. The fans are aware of it, the presidential candidates are basing their campaigns around it, and every club in Europe is attentive to it. When the king is bleeding, – everyone is awake.

According to reports, the total debt is a staggering €1.2 billion, with €730 million being due short term, while €266 million has to be paid by June 30. Additionally, the club has spent a bizarre €1 billion in the last five seasons.

Most major clubs that are not backed by owners are under debt, however, a debt as monumental as this is neither normal nor sustainable. The reasons behind this huge void are numerous – a colossal wage bill, loans taken to facilitate transfers, the Espai Barça project, and of course, the pandemic.

This article will discuss different methods that can help Barcelona pay off the debt and progressively work towards becoming financially healthy.

Player sales and altered contracts

Transfers have always been a big part of football. Not just because of the shuffling of top players, but because of the money involved. Transferring players out of the club can help generate revenue from both the transfer fee received from the purchasing club and the elimination of the salary that needs to be paid to the exiting player.

Barcelona has the biggest wage bill for any sports team globally – a staggering €270 million are paid every year to the first team members. There is no doubt that while some players are deserving of the wage they receive, like Lionel Messi, who not only elevates Barcelona on a sporting level but also has generated nearly €600 million in revenue during the last years, There are other players who are extremely overpaid.

It is in the best interest of the club to transfer out Samuel Umtiti, Philippe Coutinho, and Miralem Pjanic while renegotiating the contracts of Sergio Busquets, Gerard Pique, Sergi Roberto, Marc-Andre ter Stegen, and Antoine Griezmann.

Umtiti and Coutinho are both shadows of their former selves, and continuing to place faith in them would be very counterproductive. Both of them are ageing, and with every passing month, their market value is decreasing.

Coutinho has barely been on the same wavelength as his teammates. (Photo via Getty)

While Pjanic was only brought in this summer, he is also not as excellent as he used to be, and with a squad filled with talented, young midfielders, it would seem imprudent to keep the Bosnian in the squad. The three of them could be sold for a total of just under €100 million and would free approximately €30 million in wages per year.

Sergio Busquets and Gerard Pique are club legends, however, it is no secret that they are both on the decline. While they are still quality players and can offer quite a lot to the club, giving them €15 million per year and €13 million per year in wages respectively, is unsustainable.

Similarly, while Sergi Roberto is a versatile player who offers quite a lot to the team in terms of utility, a salary of €10 million per year is a prime example of overpayment. Marc-Andre ter Stegen is set to become the highest-paid goalkeeper in the world, earning €18 million per year. While ter Stegen is an excellent goalkeeper, he does not deserve being the highest-paid goalkeeper in the world. Barcelona’s management should push for a 30% wage cut from these players.

Might be time to revisit Roberto’s contract. (Photo by Fran Santiago/Getty Images)

This is a straightforward method to generate money in order to tackle the club’s debt.

Barca TV+

In June 2020, Barcelona launched its premium streaming service called Barca TV+. The service gave paying members access to exclusive content in the form of videos. There are different programs such as Discover Barcelona and What’s Next?, that are available to members to view. An OTT platform such as this is an excellent way of generating revenue.

BarçaTV+ offers a plethora of original Barcelona shows and movies. (Screenshot via BarçaTV+)

Barcelona has the biggest digital following for a sports team, with 350 million followers across different digital platforms. At the moment, Barca TV+ costs €2.50 per month. If even half of Barcelona’s followers were to subscribe, that’s around €430 million in revenue.

Of course, it is easier said than done, but with the right amount of effort, and enough time, it is possible. The club needs to work towards creating more content, and better market the service. The exposure it has received so far has been excellent, but there is more room to grow. A series similar to Amazon’s All or Nothing, would do wonders for attracting more customers.

Global Membership

Barcelona members, also known as socis are people who own the club. Currently, there are about 144,000 socis. These members have an influence on the functioning of the club and are able to vote on different matters such as elections, votes of no confidence and other referendums.

Becoming a Barcelona member is no easy task, though. While it does cost money, the major issue is that you have to be present in Barcelona to be a member. You do not have to be a Spanish citizen, but you do have to regularly visit Barcelona in order to preserve your membership status. These restrictions limit the soci candidates.

Socis are allowed to cast their vote in different matters. (Photo by JOSEP LAGO/AFP via Getty Images)

As a result, Barcelona should work on uplifting the proximity constraint and should allow fans worldwide to become members. Doing this will not only generate more revenue for the club but will also allow more fans to have an influence on the functioning of the club. Barcelona has a digital following of 350 million, even if 10% of the 350 million – 35 million, become socis, that is €6 billion in revenue per year.

Of course, this system will be hard to implement and comes with a few issues. Becoming a soci becomes accessible to rival fans, who can make decisions that hurt the club. Regardless, with more thought behind it, this is a stream that can help Barcelona generate a lot of revenue.

Camp Nou naming rights

The Camp Nou, painfully, might carry a different name. (Photo by David Ramos/Getty Images)

Camp Nou is the biggest football stadium in Europe, and also arguably the most famous one. Naming stadiums after sponsors has become a widely used source of revenue in the footballing world today. By licensing the naming rights of Camp Nou, Barcelona can open up a stable stream of revenue. While it is unideal, since the Camp Nou name carries a lot of history, prevention of the liquidation of the club takes precedence.

According to ESPN, the price for the naming rights for a 20-year-period is €300 million. While this sum will not be paid upfront, it is still a continuous stream of revenue that can help the Catalan club tackle the debt issues.

Espai Barça

In April 2014, 72% of the socis approved of the Espai Barça project with a budget of €700 million. The original plan consisted of remodelling the Camp Nou, constructing the Palau Blaugrana for 10,000 spectators, and making the Barça Campus. The project was supposed to be completed in 2021, and the objective was to gain an increment of €55 million per year from the project. The project has not been completed, and the budget has soared to a reported €900 million. However, it is also estimated that the increment in annual revenue will be a gigantic €150 million.

The beautiful Camp Nou is yet to be remodelled. (Photo by Michael Regan/Getty Images)

While Espai Barca is an ambitious project that will make Barcelona’s facilities the best in the world, it is not sustainable to continue working on it with the debt looming over the club. A lot more loans will have to be taken, adding to the debt, and a lot of the club’s financial resources will have to be directed towards this project instead of paying the debt. Therefore, one way to tackle the debt situation is not to increase it and to use all available resources towards fulfilling it.

The situation is dire. While the pandemic was heavily responsible for the reduction of income (no fans being present in the stadiums), the debt menacing over Barcelona serves as a wake-up call for not irrationally borrowing and spending money. When Barcelona sold Neymar for €200 million in 2017, it seemed like the club’s financial future was secured, however, that money was spent on all the wrong players, and even more, money was borrowed, in order to compensate for the lacklustre signings made from the original €200 million.

Barcelona still is one of, if not the biggest, club in the world. It has valuable assets such as properties, facilities and players – which, if managed correctly, can help the club navigate past this situation. Doing so will be the main objective of the board that is elected in March. While this debt could not have come at a worse time, with a massive squad overhaul pending, this situation should teach the future management to be responsible with spending money.

My name is Malhar. I've been watching Barcelona ever since I saw Barca's Spanish players dismantle opponents for fun in the 2010 World Cup. Over the years, my love for Barcelona has evolved into a passion to write about Barcelona. I love writing about the club. I usually have very unpopular opinions, but I'm proud of them and I stand by them. Feel free to discuss about anything related to football, with me!

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Analysis

How Zidane’s Real Madrid beat Koeman’s Barcelona

Anurag Agate

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Photo via Imago

The highly anticipated day of El Clasico, the clash of eternal rivals Barcelona and Real Madrid finally arrived. The Blaugrana were just two points ahead of Los Blancos with the same number of games played. Diego Simeone’s Atletico Madrid are at their most vulnerable right now; recent losses to Sevilla and Chelsea had already demoralized the team. Additionally, Luis Suarez – their top scorer -, is injured.

El Clasico has incredible importance on its own. Add to that the fact that it will be pivotal in the title race, and it becomes apparent how much it means to both sides. In this tactical analysis, we take a look at how Real Madrid managed to conquer Barcelona in a 2-1 victory.

The systems

Ronald Koeman’s Barcelona lined up in a 3-5-2 as expected. This formation is one that has contributed to Barcelona’s recent positive results significantly. Though this could be viewed as a 5-3-2 or even a 3-5-2-1 at times, the basic principles remained the same. Barcelona would look to build up from the back. The backline of Ronald Araujo with Clement Lenglet and Oscar Mingueza on either side of him was the platform upon which the team would build-up.

In midfield, Sergio Busquets would be the deepest player, with Frenkie De Jong and Pedri Gonzalez as the two interiors. These two youngsters would operate in the half-spaces as their roles entail, but they would drop back and join the attack as well. Jordi Alba and Sergino Dest, the two wing-backs, would look to stretch the opposition and would be positioned high up the field.

In attack, Lionel Messi was joined by Ousmane Dembele. The Frenchman would operate through the centre as Messi would usually drop back and have the freedom to move across the pitch.

Zinedine Zidane has often been labelled as someone who manages big egos well but doesn’t have tactical expertise. Purely a misconception, this match was an example of how well the retired midfielder sets up his team. What was most admirable was how Zidane finds the perfect role for his players’ profiles.

Real Madrid were deployed in a 4-1-4-1. Casemiro would play between the lines, with Luka Modric and Toni Kroos just ahead oh him. This formation could also be viewed as a 4-5-1, which would be a 4-3-3 when attacking. In defence, Eder Militao and Nacho were the centre-halves with Lucas Vasquez and Ferland Mendy as the full-backs. To support the midfield as well as the attack, Vinicius Junior and Fede Valverde would act as wide midfielders.

Karim Benzema, the number nine, would drift into the channels or drop a bit deeper as required. He was the key to Madrid’s fluid attack. There would be a constant staggering between Benzema, Vinicius, and Valverde. When Benzema dropped deep to fight for the second ball, Vinicius and Fede would move forward and provide passing options. At times, Vasquez would overlap, which was Valverde’s cue to drop back. The players would also switch roles.

Madrid’s defensive organization

After getting a lead, Real Madrid were still proactive but to a lesser extent than earlier. They would even have five players defending at times, transitioning into a 5-4-1. Their timing and organization was impressive nonetheless. As we see in the image above, Ousmane Dembele is about to receive the pass. Immediately, Casemiro presses him, while other players start moving forward to close the distance to possible passing options. This meant Barcelona had little time on the ball deep in Madrid’s half.

The pressing shown by Los Blancos was very fine-tuned. The players were unsurprisingly not hesitant to play a physical game as well. As the earlier image shows us, Ousmane Dembele would receive the ball ahead of the defense and attempt to involve other players. Pedri and de Jong were the most obvious passing options. However, for them, the passing would more often than not be out wide. This was forced due to Madrid’s structure which prevented them from playing through the middle.

Arguably one of Barcelona’s strongest moves is when Messi plays Jordi Alba through between the full-back and centre-halves. Though it was effective at some points in the match, this was clearly something Zidane expected. When either full-back would have crossing options, the full-backs would look to block the cross.

Simultaneously, the centre-halves would track Barcelona’s attackers Messi and Dembele. These two being the only two forwards, Mingueza’s goal was one of the few times the team actually had more players looking to attack. Casemiro would be in the box looking to clear the ball or cover for any defensive holes.

What went wrong for Barcelona?

Ronald Koeman’s team selection was well-thought-out. Shifting de Jong to midfield was a smart choice. However, as the scoreline clearly shows, some issues persisted.

One of the main ones being the lack of attackers in the final third. This was a formation with two attackers on paper, but one of them was Messi. Expecting the argentine to make runs off the ball and act as a target man is highly unrealistic. He does best when he’s on the ball. This would leave Dembele alone upfront. The Frenchman isn’t a classic number 9 who takes shots on the swivel and can establish himself in the box. Against a defence that was sitting very deep, he was unable to run onto the ball between the full-backs and centre-halves the way he likes to.

The image above shows a common scenario observed in the first half. Receiving the ball in the final third, Dembele turns to face the defenders. As they don’t lunge in, rather trying to contain him. he is unable to beat them in a 1v1. There is plenty of space with no Barcelona players highlighted in the image. This lack of attackers was one of the reasons Koeman switched to the 4-3-3. Shown below, the 4-3-3- allowed Pedri and Dembele to be more involved.

Statistical analysis

Below, we have a visualization showing the PPDA stats for both teams. A lower PPDA means a higher pressing intensity. As we can see, Barcelona were clearly pressing much more than Real Madrid throughout the match. Despite this, they failed to create enough chances. To demonstrate this, we can observe the xG graph.

As the xG graph shows, there were some situations when the Catalans had a chance to change the score-line in their favour. Among other reasons, Dembele’s inability to play as a striker and inefficiency in finishing was clearly affecting the team. The visualization below the xG graph shows the shot map. It further reaffirms the observation that Barcelona need to improve in front of the goal and in terms of the quality of chances created.

With a higher number of shots, Barcelona still had a lower xG than their rivals. Another indication of low-quality chances is the size of the circles in the box for both teams. The smaller the circle, the less likely it is to end up in the back of the net. The stark contrast is one of the many indicators that there are major issues to be resolved in attack for Koeman’s side.

Conclusion

This loss will hurt Barcelona, even more so as it strengthens the notion that his team doesn’t show up in big matches. If Koeman’s side wants to be Champions, now is the time to give their all. One cannot ignore the fact that the Blaugrana have a lot of work to do to be deserving of the La Liga title. Whether or not they will be able to do this remains to be seen.

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