Barcelona’s Appeal Against UEFA Fine Rejected, Messi Exit Linked To Financial Turmoil:
Barcelona has been fined 500,000 euros ($537,000) by UEFA for misreporting income under financial monitoring rules, as per a recent appeal ruling by the European soccer body. Barcelona had lost an appeal to UEFA against this fine.
The club finance panel at UEFA had originally imposed this fine on Barcelona back in July. It was for declaring profit from disposal of intangible assets, which does not qualify as relevant income as per regulations. UEFA has not provided specifics on the revenue included by Barcelona amidst its financial turmoil.
In June 2022, Barcelona entered a deal worth 207 million euros ($222 million) with investment firm Sixth Street. This was in exchange for 10% of its domestic broadcast rights income over the next 25 years.
FC Barcelona is fined €500,000 by UEFA for violating financial control rules.
UEFA press release: “FC Barcelona has been fined 500,000 € for having wrongly declared, during the 2022 financial year, profits on the sale of intangible assets (other than player transfers)… pic.twitter.com/w0KJou5B3u
— Football Talk (@FootballTalkHQ) November 3, 2023
Barcelona’s financial troubles led it to join the failed European Super League launch in 2021. It also led to club legend Lionel Messi’s reluctant departure later that year. The club was then unable to bring Messi back this season, despite his interest to return. Messi instead went on to join Inter Miami.
But what made one of the top clubs Financially Struggle?
- Overspending on players: Barcelona has spent more money on players than any other club in the world in recent years. This has been driven by a desire to compete for the top trophies, but it has also left the club with a mountain of debt.
- Poor financial management: Barcelona has been criticized for its lack of transparency and accountability in its financial reporting. This has made it difficult to track the club’s finances and to identify areas where spending can be reduced.
- COVID-19 pandemic: The pandemic has had a negative impact on Barcelona’s finances, as it has on the finances of all football clubs. The loss of revenue from matchday tickets, sponsorship, and broadcasting has made it even more difficult for Barcelona to service its debt and meet its wage bill.
- Exit of Messi: Messi was a major source of revenue for Barcelona. He was one of the most popular and marketable players in the world, and his presence at the club helped to attract sponsors and ticket sales. When Messi left, Barcelona lost a significant source of income.
The La Liga club has faced deep economic challenges in recent years. It sold off a substantial portion of its future television rights income in 2022. Barcelona also sold other parts of the club to enable short-term player purchases and registrations.
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