How Can Barcelona STILL Sign New Players? (EXPLAINED)

[@giornogiovanna845]

You missed 1 detail being that the club reserves the right to buy back the percentages of the TV rights later if they so wish

[@escape2nirvana]

Yes but doesn’t mean the buyers have to sell them back or would want to sell them back before the 25 years are up

[@Edittname]

@@escape2nirvana Exactly

[@muleyamwiinga3988]

Basically that would be Barca activating a debt which would need interest

[@AskyuhmodaTT]

@@escape2nirvana false. They have the right to buy it back. It’s part of the deal. The investor won’t have a say to deny them buying it back

[@caflorero]

@@escape2nirvana I believe that the buyers don't have a choice.

[@ecuageorge1]

As a financial analyst, Adrian this was perfectly well said.

[@RabonaTV]

Appreciated George!

[@SarthakSabharwalMusic]

Except for the choice of words. Calculated risk and gamble are not the same thing. But I guess, we only have access to hot selling news and not the club's internal decision making financial models and projections.

[@sag2975]

@@SarthakSabharwalMusic dude is making videos for click won't tell the truth, As a CA I can say this video is just for entertainment can't drew parallel to real world.

[@thescoringcompany165]

@@SarthakSabharwalMusic Exactly! The idea is that as long as the club does prudent investing with these cash flows, it should benefit both the investors and the club. It's very similar to securitization of any other financial assets. And that's exactly what they must be counting on- that the future review will go up as club grows with these investments. The returns they must be hoping to get must be high enough to account for the risks associated with the unpredictability of football. Their internal financial and risk models are something we can only speculate on.

[@rjgomez5407]

Hey,George would u mind if u say about your educational qualification

[@makro11]

The selling deal of TV Rights was much better than the La Liga CVC deal. They requested for around 40 years!

[@arroe8386]

And for worse conditions

[@escape2nirvana]

What ever helps you sleep at night the cvc deal would of helped the smaller clubs in la liga be more competitive but Barca can barely compete nowadays so I guess they would say no

[@caflorero]

@@escape2nirvana Lmao, the CVC deal was worse for the club, which is of course who we think of first. Also, Tebas and La Liga hardly do anything to make the league more competetive.

[@Castiel_01x]

Not to mention CVC deal is actually a liability in the books of accounts. And it was actually 50 years at first then they reduced it to 40 years for Barca specifically. Adrian's analogy is wrong cuz levers are recorded as revenue unlike CVC deal.

[@crypto_mbappe3056]

@@escape2nirvana you absolutely have no idea of what you are talking about. Tebas said the cvc deal is to save the league. Meaning, he didn’t want takeovers from American and Middle East billionaires. With the cvc deal, clubs can pay most of their short term debts by selling parts of their Tv rights revenue and move from there. Take a look at la liga and the teams that signed the cvc deal. It made them weaker and la liga has been a selling league this summer. Compare the net spend of la liga to other leagues. You will know.

[@GopalaiahVinay]

Finally, a very good insight into how Barca are managing their finances.

[@joelriert3340]

Giving away up to 25% of the tv revenue will have an impact, but not being able to compete at the highest level would probably have been even more costly in the long run. And as said before there is an option to buy the rights back in all the deals. I think that is why they didn't sell the full 25% to one partner but instead split it up in 10% and 15% deals. I think they will do the same with the 49,9% of the BLM.

[@dimitrimcgregor5876]

La Liga (president and board) wanted the same tv rights to buy for 50 years from both Barca and Real Madrid , at a less price offer.. Barca happened to get a deal for half the time and the ability to buy back before that time.. like , let’s just see how it all turns out 🤷🏽‍♂️

[@itsmazin9765]

Didn’t affect Real Madrid who sold their tv rights completely in 2006

[@ddkay6478]

@@itsmazin9765 Ho you just dropped that bomb like that ! HAH I didn't know that bro ! thank now I can spit that to Madrid fans haahha

[@veedjohnson]

@@ddkay6478 that’s actually not true lol

[@ddkay6478]

@@veedjohnson ?

[@justinschoop8370]

If Barca cant compete in Europe and Spain than thats a bigger issue than any loan.

[@owanmah2933]

This is facts right here

[@Jaayhussle]

Tbh last season has been our worst season and we still cane in 2nd in la liga. Last season we started of with a handicap which was koebum. This year i believe Barcelona will have a real chance at La Liga and a ok chance at the Champions

[@JamailvanWestering]

@@Jaayhussle yeah sure blame it on the guy that had to rebuild the club with no cash his best player leaving …. And not really getting any signings through the door… Meanwhile the new guy was allowed to spend 60 million on what is now what it looks like a flop and 2 other guys where - had disciplinary issues at his former club and other didn’t even turn out to be an asset.. yet his ass was saved by the 2 signings Koeman made that season…

[@Jaayhussle]

@@JamailvanWestering yeah i blame it on the dude with a shit mentality that rubbed off on the players making them miserable. And really flop? Judge him on this new season where he will start a full season. And i forgot Koeman lost the respect of Barca fans when he started bad mouthing Barcelona fyi but basing off your name you must be dutch so don’t matter what i say you’ll back him no matter what lol

[@JamailvanWestering]

@@Jaayhussle yeah no I blame it on Laporta and mismanagement.. Koeman only started bad mouthing Barca after how he was treated.. which I agreed with.. after Laporta was elected he didn’t know what his position was.. even Henrik Larsson said the same thing, they were being kept in the dark about their job… And no I’m not Dutch but Indonesian, so please don’t assume shit

[@santiagogarza8121]

There are a couple things to say about this: 1. The sale of Tv rights is speculative, if it goes up, the buyer is benefited but if it goes down, Barça benefits, so it's not such a 1:1 comparison to the interest rate for a loan. 2. While they look like they're spending big instead of downsizing, i'd say the car analogy is flawed. They're using the money to invest in rebuilding the club, because success in the pitch translates to economic earnings (more ticket and merch sales, CL games, and prize money from tournaments). It's more like a factory owner getting a loan to buy new machinery and hopefully sell more. Let's see if they'll translate this investment into real success

[@crypto_mbappe3056]

You are correct. That’s what most people don’t understand. Barca will lose more in Tv rights if the Tv rights income in la liga increases but a decrease would be losses to the buyer so there’s risk involve with that as well. The board is downsizing in wages but they are bringing in more quality in significant lower wages in other to compete. Remember, the purpose of this economic levers is to be a able to compete while the club tries to recover financially so it will make no sense to downsize completely. Most of the high earners are taking either a paycut or they will leave. By 2024, I predict the wagebill will be very healthy as the board is working non stop to get rid of the deadwoods

[@MrHastygamer]

Why would it decrease if they are bringing in big names like Lewandowski?

[@crypto_mbappe3056]

@@MrHastygamer lewandoski is on a reduced wages; 9 mil net per season; raphinha is on 6 mil net per season. Trincao and Lenglet salary combine is more than lewandoski. 😜

[@jonathanhaynes4130]

@@MrHastygamer what ^ said plus offloading players like pique, busi, Jordi alba in the coming years will make their books healthier

[@MrHastygamer]

@@jonathanhaynes4130 I didn’t phrase it very well, what I mean is why would the TV rights decrease if more big names are coming to Barcelona, surely the more marquee players the more lucrative the tv deals.

[@fornamnefternamn5116]

Missed some key points 1 - barcelona reserves the right to buy back these shares 2 - barcelona did not just sell to the highest bidder, but to those that could expand and increase the profit. By including an investor you dont just get money you also could gain from knowledge or etableshed market already. 3 - Barcelona have already lowered their salaries a ton, and with players like ansu fati, pedri, araujo, eric garcia, raphinha, dembele already accepting low salaries it will help barcelona imensely. 4 - Barcelona is a non profit club owned by the socies (members) so they get loans at a much much more attractive rate than a for profit company, so teams like barcelona and real madrid can take on a lot of debt and handle it better than other clubs. 5 - barcelona is the biggest earner out of all clubs.

[@TheFrede2300]

They was the biggest earner when they had Messi but going forward that definitely won't be the case

[@davidcirovic8620]

"barcelona reserves the right to buy back these shares" with what money?

[@ad1pt212]

Also another thing to add: with how much we are going to be earning from selling the TV rights, we may not be forced to sell BLM anymore. It's possible that we'll get a great offer for the remaining 15% of TV rights

[@Ramkeev]

1 Barcelona has to pay out the reminder of the term in full to buy back. Meaning if the TV rights don't go up or down. And Barcelona decides to buy back in 12 years, Barca have to pay 200 million. If rights goes up during that term even more. 2. Salary cuts are unstainable long term. They are always with the promise of more in the future. 3. Barcelona biggest earner also with highest operating cost. For instance Barcelona merchandising is done inhouse meaning no middle man. Though above sounds great think of it like you selling things through Amazon or Walmart compared to having your own brick and mortar store. Now they sold 50% of that merchandising business too. 4. Investors developing these investments - first if they do it will be tougher for Barca to buy back. TV rights is a set deal with laliga, Barcelona gets it's shares. No way to develop this independently. Merchandising - This is where improvements could be. But that's what every club is doing until now. Totally outsourcing merchandise management for a small fee. While Barcelona will pay 50%.

[@fornamnefternamn5116]

@@TheFrede2300 Yeah most likely, but they Will be among top 3 still

[@natedomin7161]

Great video but a few things that are currently going on. Yes they are doing this but if everything goes the way they are doing it then they won’t have to sell any of the BLM because they need €600million which they are about to get. The other point is that it’s not just Barcelona doing this, La liga did this with CVC and it was much worse because it was 50 years and Barca would have only gotten €200 million instead of the €600 million. The last part is that Barcelona also has a clause that if they get enough funds they can buy the percentage back before the 25 years.

[@beamgroup7464]

The 600m is coming from another 400m for the 15% I heard

[@OmPrakash-ie7sh]

If Xavi succeeds in winning champions league then everything will be sorted out

[@diptarkabiswas3765]

@@OmPrakash-ie7sh If not then does they have an Insurance in place to avoid the Risk Impact :D

[@OmPrakash-ie7sh]

@@diptarkabiswas3765 dada then Xavi will try to win champions league again next season.without investment Barca had to be mediocre like AC Milan returneed to champions league after 8 years and they won serie A.

[@diptarkabiswas3765]

@@OmPrakash-ie7sh ha ha ha.. ATB, But it's really a very Risky Business, you never know when next Pandemic hits again and dismantle the entire Financial system for a while, Star Studded teams doesn't gurantee of winning CL my friend ! Xavi is no doubt a great player but he is far away from the reach of managers like Klopp, Tuchel, Guradiola, Conte, etc.. Too much of spending already in sigining and still Salaries pending.. Bad situation !

[@haydn1708]

Thank you Adrian for putting significant effort into doing the research! So many (mainly English) football channels are lazily covering it despite knowing as much as the average layman

[@chrisryan3172]

But the video was out for only 5 minutes… how can you tell Adrian put significant effort into it? (granted he usually does)

[@haydn1708]

@@chrisryan3172 I mean, he prefaced the vid saying that he’d put effort into research. And you’re right, he always does so

[@nightnomad635]

What? How are English football channels to blame 😂. There's better activity in the PL. Stop blaming English football for all the problems of football. This is a great video from a great content producer. The end.

[@El_Chucho_Bravo]

@@nightnomad635 Then they should not cover it at all, not lazily mention it and act like they have looked into it

[@sauravkumar-wo9oe]

Bro tbh nothing he said was a revelation or inside detail. He just covered everything in simple terms while ignoring several positives (intentionally or not, idk, i am also a big fan of his channel)

[@proffjosue1970]

Isn't the sale of TV for 10 years? And Barca has a buy back option?. Here are a few things people get wrong about Barca'situation They had a debt of 1.3b€ with around 700-800m of that short term debt which was due in a couple of months. Pre pandemic Barca was making 1b€ in revenue but the situation became worse after covid. Last summer Barca raised 100m in sales and saved over 250m in wages. They then took out a loan from Goldman's Sacks of about 500m to be paid back in like 50 years. They used these funds to take care of their short term debt and are left now with long term debt which is around 826m€ which will be due a few decades. At this point Barca don't have money issues, they have cash flow issues because la Liga ffp rules prevented them from using their money the way they wanted and La Liga wanted them to absorb the losses of the last few years, hence the economic levers. Barca are in no danger of going away. Worst case scenario if they default on their loans they will be aquired buy a hedge fund or worst still a Saudi prince acquires the club. People were lining up to by a piece of Barca history.

[@goonerOZZ]

In that worse case scenario... Barca would nothing but a name. These days I already feel that Barca is only in name.

[@youtubeisnotajob4103]

This is exactly what barca thinks and they r very sure that this is the most short term, plaster on a festering wound kinda a treatment. “At this point” is key, they sold away 25% of concrete guaranteed to flow revenue. Selling away any sort of guaranteed income is almost always never good. It’s essentially borrowing future money to solve today’s problem. They’ll be left with nothing in the future. Just to break even in today’s window, they sold future revenue, so everything from this point is only the loses catching up to them

[@russellward4624]

But to buy them back they need to have the cash to do it. They don't have cash onnhand which is why they're selling future earnings for a loan now. It's not like they arent going to spend next year. So unless the magically win the ucl the next 3 years in a row they arent going to have that cash on hand, especially since they're only receiving 75% of thier TV revenue which is thier largest income base. Lewendowski is 34 years old. Realistically how many years does he have left as an elite player?

[@alanhernanadez9053]

@@youtubeisnotajob4103 You view Barca as a small club, solving issues now little spot to fill, gaps that will improve the squad competitively to compete and generate more money. Mind you this is Barcelona we’re talking about. If its handled correctly wages decreased, money reinvested, competing in big stages. They aren’t going anywhere but up, promising players, a board that can make things happen and back Xavi. Keep an eye out for them, keep em rent free. #ViscaBarça 😆

[@alanhernanadez9053]

@@youtubeisnotajob4103 One thing a lot of people are forgetting as well. Theres a buy back clause. Selling 25% was always a better decision than accepting Fraudvier Tebas’ 49% CVC clause.

[@sixy5195]

You missed something, during the council it was said that if the value of the tv rights goes up and reaches a certain amount, the length of the deal will be reduced. for example if something happens and 10% of the tv rights becomes 20M instead of 16M then the deal will be for 20 years instead of 25.

[@DJParulan]

Woah. Thanks for the info. That's quite of an important detail to be missed.

[@youtubeisnotajob4103]

It doesn’t negate the loss tho, only thing it does is reduced the duration of the shackles by oh so many years. 20yrs is still a long way tho. The loses will keep creeping back.

[@sixy5195]

@@youtubeisnotajob4103 i was just giving you an example with those numbers.

[@96wtfomg]

Barcelona is basically making a huge bet. The levers will provide some leverage now, being able to pay new signings and and by reverting the loss in revenue they will get rid of the "1/4 rule" of the Financial Fair Play Rules for La Liga. However, if they can't get rid of their huge salaries, and they don't find ways to make up for the lost revenue in the loss of these TV rights and keep spending, it'll be a tough period. If things go well results wise, it will be a genius move I guess. Time will talk

[@football_fanatic_Ethan]

Barcelona just need to win their trophies 🏆 especially league and CL !! They are the biggest brand in football for the past 11 years.. they’ll be back with just titles

[@BBeowulf]

Barcelona aren’t gonna be able to negotiate with teams to sell the high wage players unless they let them go for almost absolutely nothing. They might get away with it this year with De Jong to United but teams will know how desperate they are to get rid of players and lowball them massively knowing they need to accept. It’s probably one of the reasons they’re so desperate for De Jong to leave now instead of later.

[@football_fanatic_Ethan]

@@BBeowulf yeah all they can do is loan them with salary shared.

[@blackwhite2361]

Why Josep Maria Bartomeu is not in Jail for mismanaging the club's financial resources still remains a mystery to me....

[@samuelschonenberger]

Is putting your company in massive amounts of debt a crime?

[@blackwhite2361]

@@samuelschonenberger Mismanagrment of company funds can be a crime.. Yes Maybe not where you are from. Different countries different rules. And... It's not his company. They can bring litigation against him if they wanted to

[@trivialqed]

@@samuelschonenberger if u own the company, then no. bartomeu didnt own barcelona, fans own barcelona

[@Domindi]

@@samuelschonenberger it can be it you arent the owner. He's answerable to the stakeholders of the club ie shareholders, board, debtors etc.

[@edd0f]

If Lewandoski gets badly injured, if Raphinha ends up being a flop, then Laporta would have to go to jail for spending money FUTURE PRESIDENTS will no longer receive, in fact they have to pay back if they want to recover that percentage of their tv rights. Yes, he is using money he doesn't have. It's money Barcelona and their next presidents were supposed to receive in the next 25 years.

[@alinurgas2769]

As a barca fan, I agree with everything happening. All we have to do to get our club back financially is to win, win and win.

[@boriskaresin]

Barca's economic strategy can be explained simply = "Sell our future for the now ". They really trying to stop the ship from sinking (meaning bought by external investor)

[@sebastiancerna8653]

La liga were going to do the same thing for a higher percentage and for 50 years

[@maximilianstieglitz4912]

I hope they wont succeed, just soulless in my opinion

[@bencegabor648]

@@maximilianstieglitz4912 so trying to do something about the dumpster fire that your predecessor (Bartomeu) made in a 100% legit way is soulless? the assets that Barca sold only make up for about 10% of their total income. plus the way they are playing now means that their revenue will increase even more this season. Laporta is a lawyer, as is much of his board, so they know what they are doing.

[@VinceMancini]

I have been so confused about this for so long now! Thank you for making the video!

[@RabonaTV]

My pleasure Vince!

[@ennis4417]

😂😂😂 the vecna sound effect killed me - keep it up with the puns threats and dad jokes, i love your content

[@starwarsjedi0002]

Thank you for making it so more people can know more about it

[@jonathanm9993]

At the end of the day you can argue that the Barcelona brand is so recognisable, that investors believe that it will always gather returns sometimes in the future. It’s basically a Football club that’s too big to fail

[@FunkyGhostHD]

So we basically bank on current/short term success to stay afloat and cannot afford another fiasco season. While the signings give me hope and the future seems bright with current young stars I'm really worried for the financilal situation. A club of Barça's stature probably won't go under but... If it ever happens, it is going to be another addition to the list of my childhood glory days that'll only stay as a distant memory... Ronaldinho introduced me to the sport and Guardiola era Barça made me fall in love with the beautiful game. Fingers crossed I guess 😥🤞

[@MrPSgangsta96]

Yeah, it's pretty much an all or nothing gamble from the board. Laporta is banking on signing all the players Xavi wants and hopes that is enough to secure titles in the coming season. If Xavi fails to win anything despite getting all of his signings then not only Laporta, but Xavi as well will have to take the blame for Barca's downfall/potential bankruptcy. Just praying De Jong somehow stays and we win a couple trophies next season, otherwise it might be over

[@football_fanatic_Ethan]

As long as Laporta is the president, Almeny and Rafa along with him, Barcelona can stay away from any danger. God willing!! It means super league is a great option to bring back all the revenues

[@AR-rg2en]

@@football_fanatic_Ethan no wonder laliga is such a terrible duopoly, its fans supporting super league.

[@davidokwara1894]

The only person who is under pressure now is Xavi. If he doesn't succeed in the short term, Barca's earning curve stays flat for an extended period. They won't be able to renegotiate upward staple sponsorships with Nike or Spotify in the future as well as other sponsorships. It's a sorry situation.

[@football_fanatic_Ethan]

@@AR-rg2en it’s Perez who wants it more than anyone

[@bathcat3759]

I get the same sense with Barca as I got with the Wall Street fiasco in 2007. You just know a collapse is coming. A lot of money bet on a lot of hopes

[@lethargictunes1289]

Great vid dude!

[@barstar888]

You do know the league wanted Barça to sign the CVC deal they struck which would have had Barça sell their tv rights for 50 years. What they did to avoid that is FAR better than what the majority of the league agreed to (outside of Real and Atletic Club) with regards to a tv rights deal.

[@hottt4Ewon]

And it is misleading to present this video without this key information. Don’t compare Barca’s tb right sale to some hypothetical ideal world, compare it to the actual alternatives: CVC (less money per year on a longer deal) or no sale at all (slower sporting recovery, which could be costly in the long run too). Hopefully Barca will be successful and it’s tv rights will increase in value, and the club can repurchase them and re-relicense them again.

[@anxofernandez3344]

The idea is getting rid of some high earners and bringing other slightly lower earners. Also, they need to be competitive ASAP and staert winning titles and competing in the champions league for longer. This year they're spending a lot of money in signings, although the payment will be done in several installments. Also, they intend to sell some players or renegotiate contracts and some cases will be easier thsn others. For example, Busquets is in his last year and he won´t be renewed, Sergi Roberto accepted a wage cut but he´s also gonna be here just for one year. Also, there are persistent rumors of Piqué retiring next june. That´three people already they´ll get rid of. De Jong might keave this summer or the next one or maybe even in January, but I don´t see him lomg term in Barcelona, especially with those wages. Depay will be sold this summer for sure, wchich means receiving 20M and saving about 9 including taxes. Dest is another guy who might leave now or later, he makes 2.6M and he could be sold for mayb 15-20 M. Barcelona has an agreement with Atletico by which if Griezman plays again this year over 50% of the games he´s available (quite likely since Simeone adores him), they´ll have to pay Barça 40 M and Trincao has been loaned to Sporting Portugl but if he plays a number of games they´ll have to pay 20M. Lenglet has gone to TAaottenham on loan and if he plays often he could be sold next year for a little bit of money. A few other players will be granted their release for free this very summer and thus Barcelona will save quite a bity in wages. The investment is big this year but the plan is spending less in the next two or three and receiving more moneyin transfers. Also, if they are successful they´ll make even more money. So long as nobody goes as crazy as Bartomeu sigining super expensive players (over 400 M in just Dembele, Coutinho and Griezmann) and giving extraordinary large wages.they´ll be fine.

[@Officialchike_]

Well spoken but Dest may not leave this season, I see depay leaving and I see De jong leaving or reducing his salary

[@se2018]

If Only Man United thinked like this, to be competitive inmediately... It has been almost 10 years since they we're competitive, there is simply no sense of urgency un that regard

[@anxofernandez3344]

@@Officialchike_ I think once Azpilicueta, Kounde and Marcos Alonso are in, Dest may be shown the door. He might stay until January but not much longer. Depay is leaving now because there's no room for him, just like there's no room Abde Ezzalzouli or Alex Collado. All forward positions are doubled and they're not gonna play, so they must leave. De Jong will probably accept one of the offers eventually, but it's gonna take until the last minute to convince.

[@aat1kk]

The problem is that there is a lot of “if” involved.

[@Dansidansmeister]

How does buying Lewandowski fit into the equation? How can a club with such a high debt justify to spend 50 millions on one player. This system is sick.

[@kiambo1601]

Selling tv rights makes sense but not in the way you put it. The CVC deal was a worse deal with 40 years,plus Barca have a buy back option which they can activate whenever they want

[@simoncaton1226]

This sounds a lot like the thing that ruined chelsea (ish). Basically Chelsea sold their stadium to property developers in the 1980s after 1970s stdium development. This really hurt the club and we were lucky to get the stadium back. I draw the parallel because it is a hugely risky deal that made the club essentially valueless.

[@santiagogarza8121]

Yeah, but the real-estate of the stadium is much more valuable, since it's a tangible asset

[@miguelaguirre2873]

yeah this is not the best comparison

[@SarthakSabharwalMusic]

Doesn't sound the same at all!

[@IqbalMunahar]

and then one Russian Oligarch later saved them

[@bemo8943]

@@IqbalMunahar No chelsea were saved by qualifying for the 2003/4 UCL

[@d.d.7720]

They are putting all their faith on winning something this season, if not, they will be in even deeper shit than last year.

[@dylan4865]

Rabona TV vids on a study break, sweet

[@nickraoyj]

The video title is literally what I've been wondering! Thanks for doing this!!!

[@nabster9253]

This shortermism is the problem of how this disaster started in the first place

[@latrellwestby]

The 1.3 billion dept was alteast 9 months ago...its more 400+million ...however the wage is still but better than it was a year ago

[@Noah-dh6se]

Brah... where did you get that from??? That would bee 900 mio in 1 year...

[@mathiaspurner3791]

@@Noah-dh6se a lot of it is accounting debt, eg: money set aside for ongoing lawsuits, services paid for but not yet provided...

[@karti670]

They didn't repay a single penny in that debt in fact after laporta it only increased but what barca did is they refinanced all their short term debts but at a higher interest

[@latrellwestby]

@@karti670 where u get this bs?

[@karti670]

@@latrellwestby bs means I knew abt barca coz I verified many sources like swiss ramble Deloitte sid(journalist).

[@ugobabyy]

Amazing and very informative vid! Thank you!!

[@theeuropeanb7637]

this was such a breathe of fair share really thanks however you forgot A few thing in 5-10 years if barca are completely stable financially they will have a buyback option another thing the club feel they will not sell barca merchandise at .. finally you also forgot to include that barca are still one of top 2 highest revenue clubs in football AND finally messi,coutinho, Griezmann and lenglet all being paid huge and insane wages left the club

[@jobinjose6753]

Unfortunately LengLOL will come back next season after humiliating himself at tottenham

[@taskfootball10]

How can barca be financially stable in 5-10 years if they spend their money like this?

[@TheoMos22]

Once again an amazing video, great job Adrian

[@diobre]

Thanks Adrian! This was the explainer I was looking for.

[@nunogoncalves1802]

Would it be any other club in Spain (besides Real M.) and probably they would be fined, not allowed to register new players, or even thrown into Second Division... but anyway. Let's all pretend this is normal and acceptable. Football became a money laundry industry long time ago. Fck modern football.

[@justinschoop8370]

El classico is still one of the most watched matches but sure fuck barca

[@gabrielredrico8762]

Barca is not like any other club. We’re a massive global brand and us being thrown out or dissolving would cuz la liga to lose a massive of their income and popularity so they’ll never let that happen to us

[@chrisryan3172]

And a lot of people think Laliga hates Barcelona…

[@chrisryan3172]

@@gabrielredrico8762 they did that to Juve in Serie A.

[@soraeshan8082]

Bruh we havent registered anyone yet

[@kingk1217]

Great job, you’re really good at this!

[@mijobrnjic89]

I am fan of this channel since 1922 and i must say, it gets better and better.

[@matthewhernandez8342]

Damn you’re pretty old, did you watch the first inaugural World Cup in 1930?

[@mijobrnjic89]

@@matthewhernandez8342 i was playing at it for bosnia and herzegovina

[@Ayan-bp4dq]

When GJustjuve recommended RabonaTV, I knew it was going to be good.

[@abhishekghosh3754]

At this point, every Barcelona fan is just starting his\her day by cussing Bartomeu...

[@Harisankar-ce2vd]

Pretty similar to what Leeds United did in the early 2000s? 🤔

[@davidcullen3578]

Good video, thanks for making it. This is awful and reminds me of Enron in The States (future forecasting) so many years ago. I can only see it ending in the same way as Enron did - some people got rich and a pat on the back while destroying the lives of others (the fans)

[@pedroelsade]

Awesome video!

[@PeterEhik]

It don’t matter anyway, If things start looking real bad, some Saudi prince or US consortium will buy them up, it’s why no one at the club cares about debt and how much they’re spending

[@mg_phopla]

Ahhh, thank you✌🏾

[@sawlagamer5689]

Very very deep dive greatly explained

[@Enslin07]

Couldn’t finish this video as he took forever to get to the point

[@aliirajpoot6022]

Important Thing to note is the Buy Back Clause .... They can buy those rights back if they generate much income .... If they promote more La Masia players to first team and then sell them for more profit they can get the money to have those rights back .... But as it is happening they are letting their ego get the better of them and they want to be that big force in europe and signing players like crazy ....

[@proffjosue1970]

People wanted Laporta to sell shares from the club itself. This is a lesser of two evils kind of situation

[@JamailvanWestering]

Nah people wanted them to incorporate more academy graduates into the team, not just sign players for big heaps of cash they don’t have

[@proffjosue1970]

@@JamailvanWestering Ah so you wanted them to take the Arsenal approach to mediocrity. Using youth players while having to sell their stars, and having youth players leave the team once they develop because they want to be compete, or they are tired of all the pressure put on their shoulders. A teams ability to make money depends on how competitive they are. Let me remind you that Barca were lingering in mid table when Xavi came in and it was their January signings that turned things around. Winning the Europa league earns a club less than than reaching the knockout rounds in the champions league. Idealism doesn't get you anything. Look what happened to Arsenal

[@JamailvanWestering]

@@proffjosue1970 except if you do it well you can certainly compete especially knowing how to scout.. that was the entire approach to La Masia, when a player leaves another one should be standing ready. They were lingering because of bad mismanagement by Laporta already at that point…

[@vismong102]

@@JamailvanWestering you don’t win big with youth mate.. Iniesta and Xavi where already experienced players by the time 2008 came around

[@JamailvanWestering]

@@vismong102 tell that to Ajax of the 90s that won their campaign that won the CL with mostly their own youth…

[@vedantpurohit2567]

The fact that they are betting their future on the likes of Christensen, Raphinha and Lewandowski is insane

[@guneytopal1713]

Basically a bench warmer from Chelsea, a good player for a relegation side and a player who is on his way to the retirement home (obviously it’s joke but it gives an idea on the players they have got this summer which aren’t the best of the best, Lewy is but he isn’t young now is he)

[@eruveyalvarez8416]

Everyone is talking about barcas horrendous business from the last 8 years but no one points the finger to Bartomeu. He’s the one who destroyed the club and Laporta is doing his best to restore the club from the huge deficit it was left it by the previous president.

[@gabrielordonez8011]

Laporta is just Light Bartomeu.

[@bricktop.]

Mate literally everybody pointed the finger at him.

[@stevencooke6451]

Only Adrian can make the Surfshark ads must-watch. One of these days I'm going to collapse like Barca's finances and buy the service (I know, the "buy" part doesn't complete the metaphor).

[@SarthakSabharwalMusic]

You did a good job laying down facts, except for the choice of words. Calculated risk and gamble are not the same thing. But I guess, we only have access to hot selling news and not the club's internal decision making financial models and projections.

[@TheAlijator]

Sorry he didn't sugarcoat it and got your panties in a twist.

[@rahulrao6900]

So, hypothetically speaking, if barca get relegated to the segunda division, then they would earn much lesser from TV rights. So, the payoff they receive now would be way more than what they will be paying the company that loaned them right?

[@andrenc3681]

Good video, thanks for the research on this. Laporta is insane and a Barto 2.0. This will end in tears and it's difficult to understand how so many are waxing lyrical about what is going on (mainly the atrocious catalan press). It won't matter, the club will turn into a plc, be bailed out financially but owned by another oil state. Laporta won't care, he'll be long gone.

[@NikD7]

Spain is different, my friend.

[@sidrnaik1735]

one little missed detail is Barcelona can buy back the assets at any given point while the deal is active(for what I imagine is either the original sale price or a predetermined amount in the contract) if they so wish to do so and have the means for it. The company the sell the rights to will have no say over it, they can just pay the money and get their assets back!

[@timidstein888]

Thank you for making this. As an Interista, it's confusing to see Barca who are in a worse financial situation than even us still sign players left, right and center!

[@soumyadas75]

well explained 👏👏👏👏 but I have to admit it's lot's better than cvc deal & we can't forget that super league project is still active

[@joseluisgonzalez1047]

You also have to keep in mind that La Liga president is an open Madrid fan, and he has his own interests in selling La Liga rights to financial companies (instead of clubs independently doing this, such as Barça have done now). There is also the entire Spanish government trying to crush Barcelona whenever they can to stop the Catalan independence movement. Then you have the enemy in-house as well with Rosell and Bartomeu, a faction that simply hates Laporta. And despite all this, the club will survive and thrive once again.

[@hj-hv6rt]

7:25 Lol literal FM style player registration IRL that’s wild

[@Pantalaimon91]

In my eyes Barca are absolutely banking on the Super League getting off the ground. They still are one of the teams that supports it and these deals make a lot more sense when you look at the projected revenues they were expecting from that.

[@jordancorley828]

Great video

[@justinwatterson3008]

This is reminding me a lot of Leeds. The benefit barca have is that la liga is too heavy so at least they’ll continue to qualify for UCL most likely. The question is will mediocrity in Europe be enough?

[@matthewhernandez8342]

If they can make the round of 16 of UCL consistently then the reward money should start piling up. I really think they should chill out with the signings until next summer.

[@bricktop.]

This is literally Leeds again.

[@isahusman4214]

The financial analyst is good

[@peterwg725]

If they are in $ problem then how can they sign players?

[@itsdungitv]

I love this video bro It makes sense because Barca are kinda a Mixed bag so

[@TheRainsounds1]

something you missed is an option to buy back all rights in 4 years a big miss in your video

[@jonl8816]

Atletíco could never get away with this amount of financial recklessness...

[@LuisAguirre-bx7fu]

You my friend getting a sub !

[@amtrspo]

In other words, they've taken what is needed to pay the debts FC Barcelona haven't paid particularly wages while the next 10-25 years area heavily relying on UEFA Champions League Football every single year. They'd determined players they want and need to get rid of their books (Depay and de Jong, but de Jong is not willing to get a paycut again just yet to align with reports say he's not leaving the club at all).

[@hmontalvo90]

This isn't bartomeu fault is the cules fault for wanting to keep messi and club legends who just couldn't keep up anymore. They Still payed them absurd amounts of money all too keep the fans happy. And here we are now

[@EliasRoy]

I don’t know why are Payern fans so obsessed with Barça. Stick to your club

[@alejandrosalazar7849]

Actually they're not bringing big earners... Lewandowski took a pay cut to come to Barcelona, Raphinha, Christensen, Kessie, etc don't earn that much, they reduced Dembele's salary. All they have to do now is sell the deadwood Depay, Braithwaite, Umtiti, Pjanic, Neto, etc

[@KNG_KingNate]

You missed their new wage structure which makes it so that no player can earn more than 10 million Euros a year. You also missed the fact that the club reserves the right to buy back the TV rights later

[@surpriserakins9067]

Not true Lewandowski, Raphinha and indeed Kessie have alm signed for more. Unfortunately a lot of people focus on the net salary when the gross salary is double

[@gabrielchinzz3332]

@@surpriserakins9067 they said Lawedowski will earn 9 million per year,i don't think that's true but it's quite possible because of age

[@surpriserakins9067]

@@gabrielchinzz3332 that's €9m net not gross so nowhere near as low as is being presented.

[@andrenc3681]

That's 10m net, you also have a handful a players earning more, and deferred salaries to pay back, and an increase salary scale to the same handful of players. The cost structure of the club is already a problem and a massive ticking time bomb

[@scelonkabinde5764]

These deals actually have a potential upside more than a downside because it will allow Barca freedom to act and progress, thus giving more potential to making more money in a shorter space of time than would have been. It's mostly just plain business dealings that are necessary for longevity. Sometimes you gotta lose to win again 🤷

[@abubakrwally805]

I hate what they’re doing to Frankie De jong

[@joshuabuabengdebrah853]

You left some important things out like the salary wage limit. Every player that comes will not earn more than 10 mil a year.

[@zapxdragon10]

you forgot to mention the pressure from laliga to sign the CVC deal in which barca had to sell their tv rights for 50 yrs that's right 50 YEARS and for similar money I think I mean this was the better option and a way to safe land the crashing airplane

[@americansoccerunited]

Can't wait until it all blows up in their face. It shall be glorious.

[@TP_TheOneWhoDreams]

Amen to that!!!

[@emiled_denmark]

you also forgot to mention the Barcelona requirements buyer of marches, should help unknowingly it to Asia and the usa. due to the majority being sold locally in Europe. therefore those who buy 49% have to make it bigger so they make more money at the 49% and Barcelona make more money at 51%

[@bg22757]

It's a bit "Wonga loans". They won't last this way

[@Aaryan1017]

The audit demonstrated the big reason Messi wasnt registered. Barto never showed the true finances of the club to new board. Which made Laporta confident at that time that he could get Messi to renew. The audit showed let alone messi...we could barely register Eric garcia depay last season U missed a point in the giving back of the LEVERS. Laporta said that the Profit earned by the buyers have a Cap. That means they cannot exceed a certain limit.

[@everyone1liesd459]

Just like your previous president lied I'm so this one lied about the cap limit on profit too What Lender would agree to a profit cap, what's to stop Barca from paying them back once that cap is reached, they can instead of paying it back in 25 years, tell them that the amount is fixed and that they'll begin to pay it back in smaller amounts but over 50 years now. I don't believe that profit cap story

[@Edittname]

I saw a few comments about Barca still reserves the right to buy back their shares, but the point is that Barca kinda gambling on their future. Yes, they can buy back their shares, but it will only happen if Barca have successful seasons or somehow they can get another earnings. If they have another bad season(s), they will be drowning even more in their bad financial situation with high wages and reduced amount of incomes. Even though Barca is signing free players, their wages aren't. And while these decisions might help Barca for now, it might not for the long run as this video explain. As a fan of football, I hope certainly the best for Barca.

[@chadkeane8085]

What alot of ppl dont seem to remember (conveniently) is that Barca is one of the top earning clubs in the world.. full stop. So even if as you say we are mortgaging our future the club will make back all that money 10 folds... what ppl also remember is that we are just coming out of a pandemic that affected everyone economically. Teams around Europe are not splashing big money on signings again (unless you're a state owned kinda club like man city and psg) and along with the gross mismanagement of our previous board it left us on our faces, But if the pandemic didnt happen we would be fine.

[@joelriert3340]

This is why the club has put a new wage structure in place where the top earners will make at most €10m per year. And these economic levers was put in place so that Barca can restructure the team and make them competetive on the highest level again. I think it looks promising as for now. This is a long term solution, which to me have the looks of being a very calculated risk.

[@Edittname]

@@chadkeane8085 I know that well if Barca is one of the biggest football club in the world. It’s easy to say for now that Barca will make back all that money 10 folds, but you surely don’t know exactly what future holds and that’s entirely my point. Barca really can’t afford to have another bad season(s) or another extraordinary situation like covid. Barca’s future success isn’t a guaranteed thing. Only time will tell, finger crossed.

[@sluglow6357]

Man for ppl to still be having to explain this says a lot about the ppl still wondering lol simple business folks, they gonna probably end up in the same position in a few months ears but that’s what all these rich folks & but g companies do

[@sagovana]

They also bought Kounde today for €55m +€10m addons. Kessie - Free Christiensen - Free Raphinha €65m Lewandowski €50m Kounde €65m

[@acekiller904]

You need to explain it better there’s so many parts left out

[@Mahmuddaud247]

Yoo about the final point, I feel I need to bring up a point here, the first issue I have with the video I am that you got your info from an ESPN rep we all know, don’t know shit. Yes Barca are selling rights and all, but you have to look at it with the stage the former Barcelona board ran the club into. If barcelona had a choice they won’t be selling the tv rights or BLM(with might not be sold anymore). But rather look at it like this, if Barca keeps falling, or turns out like AC Milan or something the 25% right we didn’t sell to save the club will be wayyy less valuable, but if Barca does well the 25% right we have sold we be way more, also meaning the other 75% Is way more valuable. (Also der is an option to buy back those percentages). I really love the video, being a Barca fan and seeing the club being dragged on the mud is only makes me smile to see people ask how is Barca signing players. Well Great video bro. Hands off those ESPN guys, they don’t know Shit 💯

[@WillBRich]

Don’t forget we can buy back that percentage of our TV rights and the other option was to sell around 50 percent of our TV right to La Liga through the CVC deal which laporta was trying to avoid at all cost

[@warmballer]

Yes it seems like a big deal coz it's losing for 25yrs. Although Barca can re sign the rights back but that will require large sums of money upfront. But on an average even if u factor in the increase in tv rights share over the yrs Barca probably will be losing on an average around 40M max (currently it's 17M) while factoring in the money that they will get now. 40M is the kind of figure a behemoth like Barca can be expected to earn from new revenue streams or new markets or change in marketing strategy. Covering this yearly deficit i.e. losing these tv rights won't be an insurmountable loss for barca even if it's more than this figure for some of the later yrs. But Barca got to start winning again now to stay relevant even then.

[@dimitrimcgregor5876]

La Liga (president and board) wanted the same tv rights to buy for 50 years from both Barca and Real Madrid , at a less price offer.. Barca happened to get a deal for half the time and the ability to buy back before that time.. like , let’s just see how it all turns out 🤷🏽‍♂️

[@TheAlijator]

They will probably be selling NFTs or crypto, if that didn't crash.

[@warmballer]

@@TheAlijator Barca are not just selling it to the highest bidder. They hv been looking for investors with good business plan which is sustainable and offer barca more avenues to grow in the future. Just like they picked Spotify when some Cryptos where offering better money for sponsorship.

[@davidvalencia129]

@@TheAlijator noup, last year a board director left because he wanted to sign a sponsor with a crypto instead of spotify, Laporta didnt listem and he left.

[@astonTH]

Feel like there isn’t enough focus on how they are going to pay the salary cap compared to the efforts into increasing it.

[@cautionninjas]

3:22 nice audio, Vecna coming for barça

[@miguelaguirre2873]

this is far from lethal for the club. barça is, by forbes and other sources, the most valuable football club in the world, they are a money making machine. a lot of big clubs in europe have huge debt (maybe just structured better). 16M a year is money barca could spend on a single bartomeu signing’s wages. the problem with barça are their sporting decisions: they can’t operate at a high level with the team they have, and instead of figuring out this money stuff and losing for a couple years, they’re betting on signings to cement a new team after messi’s departure. a lot of it is just a bunch of politics within the way the club is structured and in which winning has a huge impact, plus la liga’s restrictions are petty and outdated compared to other leagues. the club’s economy is obviously bad for the time being, but this is far from lethal.

[@krispykremedonut524]

Because of Laporta and Alemany masterclasses.

[@Zorto___1]

Ikr

[@RabonaTV]

Err, kinda I guess. We'll see in a few years how things look after the firesale of assets/rights.

[@krispykremedonut524]

@@RabonaTV yeah I guess but Barcelona can still buyback some of the percentage they sold because they have a buyback clause. So what they are hoping to do is just buyback a percentage of what they sold once they get more financially stable.

[@BigPurp9]

@@krispykremedonut524 so just gambling on things getting better in the future. That’s like pawning your tv in the hopes of buying it back next payday. No one can predict tomorrow

[@alexjames5103]

@@BigPurp9luck favours the brave.

[@mrinalmendon6581]

ok this is kind crazy, i was thinking about this same thing and the only person who came to my mind who would explain was you and then boom youtube recommends me this video

[@uriustosh]

Levers levers levers. Laporta is the biggest bull**** artist on the planet.

[@sammybosak10]

Ok bro

[@myusernameisalan]

Barcelona is in good hands. There are a lot of major club in high debt. Not as big as Barcas but high still. But no one wants to talk about that

[@hise2]

recently it seems very popular to hate barcelona

[@Mrmudbone_gaming]

This is a horrible deal for Barca. They’re assuming they’ll do very well the next few years when in reality they’re only digging themselves a bigger pit. They should have just bit the bullet and started from the bottom again.

[@eltonmwaura4540]

You failed to mention that right now the wages are lower in the negotiations....and that in the long run we could be earning more playing at a higher level.

[@josephkamanu7329]

you forgot one important aspect. actually all those levers are worth only 5% of the total income barca earn each year. so technically its not a death sentence as it is being said, and more so they will have all their uefa tv rights which is more than la liga tv rights, and something else is that nobody knows how much money they made as profit this year. which is why i think they are buying players and register them because they probably made a profit of 200 million euros hence the reason why laporta keep saying they have 200 million as transfer budget, something else you failed to show is breaking down barca debt, in reality madrid and spurs have bigger debts than barca cause of their stadium loans, and thats something people are not looking at, to break down the barca 1,3 billion euro debt will be very important in understanding their finances, first of all barca under valued all their assets including players for example umtiti was places as a loss so in future if they sell him for a 2 million euros it will register as a profit. same with coutinho, dembele and all the other big money moves. secondly they reported all the amortization fees owned to other clubs since the last president took office which is a big amount and lastly they included all the salary they owe to stuff and players during the covid period, everything including the money the players forfeited to be paid later including taxes owed to the spanish authority. i hope you understand upto to that point. now ask yourself how much debt barca had before all these revelation and add it, it was approximately 500 million euros, which is long term debt. and laporta said he restructed it when he came in as president to lengthen the period, all this mean that if barca earn about 500-600 million euros and pay their immediate liablities as well as report a profit and reduce salary mass, they will be back operating normally as before. and thats why laporta was so sure it will only take two years to turn the situation around. their goal is to reduce salary mass to 400 million euros and repay their immediate debts and be left paying sustainable debt which in other words is long term debts which might be less than 600 million euros and almost all clubs have this kind of debt, hence the name sustainable debt. i hope you understand now. if you still are confused, in short barca calculated all the debt they have ever owed to anyone and undervalued their squad especially the players who were big money moves and flopped, so that in future they would sell the players at lower fees and report profits from that income. clubs choose to do that all the time especially when players flop.

[@pendragooon]

I can't wait to see "Puta Barça" drop into proper bancrupcy 😈😈😈