Barcelona face risk of bankruptcy as LaLiga giants need to save £171m before Nov 5: Report

Barcelona appear to be a club in crisis both on and off the field. The Blaugrana have managed just eight points in six league games so far, enduring their worst start to a LaLiga campaign in 18 years. Their struggles off the field have been well documented as well, with multiple reports discussing Barcelona's financial status, pointing out the dire state the club finds itself in. Now, according to fresh reports, the club is at risk of bankruptcy if it fails to negotiate the latest round of pay cuts.

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Barcelona bankruptcy: Are Barcelona bankrupt? 

Catalan radio station RAC1 reported that the club could be declared bankrupt if they fail to reduce their wage bill by Thursday, November 5. The Barcelona squad had already agreed to a 70% pay cut in spring in light of the coronavirus pandemic, with latest reports suggesting that negotiations to further reduce player salaries began on Friday. The iconic club faces a race against time, as RAC1 expounded that the club will have to reduce players wages by 30% or £171 million in order to survive.

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If Barcelona fail to do so, the Spanish club runs the risk of applying for bankruptcy in January. Media reports covering the Barcelona bankruptcy story also revealed how Lionel Messi’s contract is proving to be a problem for the club financially. The Argentine’s contract expires next year and if Messi doesn’t renew his contract, the club will be obliged to pay him a bonus for reaching the end of his deal.

Managing Committee President explains Barcelona financial status

Carles Tusquets, who took over the running of the club until next year’s elections, recently opened up about Barcelona’s financial situation. Tusquets admitted that the club’s main concern is their finances as he claimed that the coronavirus pandemic has hit the club hard. Explaining the situation, the Managing Committee President talked about how the club used to depend on tourism and with that not an option anymore, it has lost a lot of income and is in an uncomfortable situation.

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Barcelona wage cut already underway

Barcelona’s financial troubles have continued to make headlines over the past few years. The club recently announced the contract extensions for Gerard Pique, Frenkie de Jong, Clement Lenglet and Marc-Andre ter Stegen. While it was reported that Pique accepted a 50% wage cut, other players have agreed to reduce their wages by 30%.

The club has been one of the most severely impacted by the coronavirus pandemic. Barcelona announced losses of £88 million in early October as debt rose to £443 million, while revenue dropped by £122.5 million.

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Image Credits: AP