Joan Laporta has to deal with Barcelona ‘s debt problem, here are some solutions

The return home is ready. Again, Joan Laporta is the president of Barcelona.

Laporta defeated candidates Victor Font and Toni Freixa in last Sunday’s club elections, more than a decade since his last tenure between 2003 and 2010. In his second term, one goal will be to deal with the club ‘s total worrying debt, which is widely believed to be over € 1 billion ($ 1.2 billion), or just € 1.173 billion ($ 1.4 billion), according to a report in El Mundo (Spanish) in January.

Were 30,134 Laporta ‘s majority voters motivated by the economy, or were they overwhelmed by the Catalans’ progressive relationship with Lionel Messi, the magical man he is so keen to maintain? Maybe it was a real nostalgia. Laporta were ahead of a golden spell in Barcelona when Frank Rijkaard and then Pep Guardiola ruled the side.

In any case, leading Barcelona in the 2020s will not be easy. The new messenger smiles confidently in resolving the financial situation, however. If it does, the following points may play a role.

Squad wear recovery

Barcelona’s strategy for buying and paying their players needs to be reconsidered, and what better way to start than with a new president. The club has often been unrelated to recruitment.

Philippe Coutinho’s expensive purchase was not worth the money and they are responsible for a heavy wage bill. The club also has to transfer top-up fees to various clubs with previous agreements in place. Marca reports the combined cost to be € 126 million ($ 153 million).

As for Messi, releasing him – even for free – would relieve him of the burden of his contract. But Laporta wants him to stay for sporting and commercial reasons. He remains a major motivator for the team and his image differs from that of Barcelona, ​​meaning he relies heavily on their commercial value and revenue potential.

Unfortunately, that leads to other difficult decisions. The current transfer market has shrunk, and for now, Barcelona is unlikely to recover large sums by selling players, especially since many of the release conditions their foot, leaving the pressure to negotiate pay cuts within the squad.

At least they have their academy, La Masia, which is a more enduring source of talent and inspired the development of Oscar Mingueza, Ansu Fati and Ilaix Moriba to name a few. They will bring hope for the future, especially under a considered wage structure, something that will help Laporta move.

Greatly promising expansion

The ambitious Espai Barça club’s infrastructure project plays an important role in Barcelona’s economic position. It is an expensive venture, one that will ultimately cost around € 1.25 million ($ 1.5 billion), including capitalized interest paid to Goldman Sachs’ main funders, a US investment bank that lent them money.

In a time of economic turmoil, it seems difficult and one that will go by the accounts. But renovation work has long begun and the club cannot be skeptical.

Barcelona are expected to make annual repayments from the 2024/25 season, by which time they hope to complete construction. If all goes according to plan, the long-term benefits are clear.

Johann Cruyff’s stadium – home of Barcelona B and the women’s side – has already been built, so one of the new focuses is to upgrade the Camp Nou and increase its 99,354 capacity by around 6,000 seats. As well as generating more revenue when fans return, it would be the only football stadium in Europe with over 100,000 fans.

In addition, the completion of Palau Blaugrana’s new 15,000-seat arena to host other sports teams in Barcelona will help solidify their profile as a sports institution rather than just football. Once the club begins its loan payments, Laporta will be confident that there will be a steady increase in revenue in the coming years.

Following media partnerships

One of Barcelona’s main sponsors, along with Nike and Beko, is Rakuten, the Japanese online retail company engaged in famous red and blue shirts. Barcelona earns € 55 million ($ 65 million) from Rakuten annually and the current deal has been extended to June 30, 2022.

It is a dynamic relationship that multiplies the application of both entities. Previously, television shows starring Barcelona stars including Messi, Antoine Griezmann and Gerard Pique, were available to Rakuten users.

It remains to be seen whether Rakuten’s contract with Barcelona continues, but at least, exploring partnerships with media platforms is one way forward. Barcelona already has a presence in this area, thanks to their Barça TV service and money earned from broadcast rights.

Laporta has already expressed its desire to seek new revenue streams to recoup the club ‘s finances. One opportunity is to review online sales and sponsorship contracts.

To make it a more appealing proposition, however, the club has work to do on the pitch. It is almost six years since Barcelona won the Champions League and they are catching up to do in La Liga this season, with Atletico Madrid leading the charge.