Published 12:57 IST, November 6th 2020
Barcelona extend deadline to cut player wages by one week as bankruptcy looms: Report
Spanish heavyweights Barcelona extended their deadline to impose a wage cut on their squad by one week after negotiations failed on Thursday.
LaLiga giants Barcelona have extended the deadline on imposing a second wage deduction on their squad by a week after the club failed to reach an agreement with the players on Thursday, November 5. The Catalan club is facing financial hardships due to the pandemic and has requested the playing squad to take another 30% reduction in wages. Reports claim there is pressing urgency for Barcelona, who must reduce their costs by January or face bankruptcy.
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Barcelona pay cut: Spanish heavyweights extend deadline for wage deduction
According to Catalunya Radio, Barcelona representatives and lawyers of the first-team squad met on Thursday, November 5, to agree on the salary deductions the club needs to carry out amid the financial hardships at the Camp Nou. The Spanish heavyweights initially set their squad a deadline until Thursday to agree another 30% wage deduction after the players already agreed to lower their wages by 30% earlier this year.
However, no agreement between the two parties was met on Thursday and Barcelona finally opted to extend the margin to reach an agreement until Wednesday, November 11.
It is believed that all the Barcelona players have agreed to take a 30% wage cut but want the club to repay them in the future. The 'temporary salary adjustment process' was described as a good predisposition by the board but no decision has been finalized as yet.
Barcelona also recently confirmed contract extensions for Gerard Pique, Marc-Andre Ter Stegen, Clement Lenglet and Frenkie de Jong. However, reports claim that new deals include reduced salaries for the four players in the short term but they will be reimbursed with an improved deal in the future.
Barcelona bankruptcy: LaLiga giants facing financial hardships due to pandemic
Barcelona are one of the many clubs in Europe losing out on a significant amount of income for every game that's played at the Camp Nou without fans. Reports claim that even before the pandemic, Barcelona's wage bill was the highest in Europe. The club's debt has also risen from €217m in 2019 to a whopping €488m this year.
The likes of Luis Suarez, Ivan Rakitic and Arturo Vidal were forced to leave Barcelona in order to reduce their salary liabilities. It is believed that Barcelona managed to save around €80m a year in wages in the summer and will need to cut another €170m before Wednesday to make sure their debts do not increase any further. In October, Barcelona announced a loss of €90m and a €200m loss of income since the pandemic.
Image Credits - Barcelona Twitter
Updated 12:57 IST, November 6th 2020