Barcelona executive approached UEFA to use Champions League revenue as security for a loan – The Athletic

A Barcelona executive approached UEFA to use future broadcast revenues from the Champions League as security to apply for a loan.

In an investigation into Barcelona’s finances, The Athletic has learned that Barcelona required loans to alleviate from years of poor decision-making in the transfer market and overpaying in player wages, which was exacerbated by the COVID-19 pandemic that decreased commercial and matchday income. It is understood that this preceded the presidency of Joan Laporta, who was officially elected in March 2021.

Barcelona’s idea was to apply for credit from a bank and use future broadcast revenues from the Champions League to secure the loan. UEFA categorically responded with a straightforward “no.”

UEFA explained to the Barcelona executive that they could not use several years’ worth of future Champions League television money as there was no guarantee that they would qualify for the tournament in every season. This is due to the fact that Champions League qualification is secured through sporting merit, rather than reputation and legacy.

The Barcelona official was understood to be genuinely surprised by the rejection. When approached this week, UEFA told The Athletic they were unable to comment publicly due to “the confidentiality of the process”.

Barcelona have been in financial trouble for some time, with debts of £1billion and strict controls on recruitment and expenditure.

President Laporta recently admitted that the club would activate a third “economic lever” by selling a percentage of their Barca Studios production house for €100million (£83.7m, $101.6m).

At the start of the summer, they sold 10 per cent of their television rights for the next 25 years to Sixth Street, for a total capital gain of €267million (£228m, $272m).

Last month, they activated their second lever by selling an additional 15 per cent to the same company, resulting in Sixth Street acquiring a total of 25 per cent of the club’s TV rights deals until 2047.

So far this summer, Barcelona have made five signings with the arrivals of Franck Kessie, Andreas Christensen, Robert Lewandowski, Raphinha and Jules Kounde.

The La Liga side begin their 2022-23 season at home to Rayo Vallecano on August 13.

Barcelona have declined to comment on the matter.

(Photo: Getty Images)

GO DEEPER

In an age of gross inequality football needs more superclubs to be as incompetent as Barca

from UEFA – My Blog https://ift.tt/sIStK5u
via IFTTT