Barca Take Loan to Pay wages

[ozzie owl]

Barcelona president Sandro Rosell has revealed the extent of the financial worries at Barcelona, admitting the players' wages for last month have not been paid.

Rosell formally succeeded Joan Laporta as president last week and and has already sold Dmitro Chygrynskiy to former side Shakhtar Donetsk for 15 million euros ($21.93 million) to alleviate the club's 'liquidity problems'.

That move came as something of a surprise as, even though the defender had struggled for first-team football, coach Pep Guardiola had stated his intention to hold onto him.

But Rosell explained in an interview with Sport his administration was forced to act, both with that sale and by seeking further funds from banks.

"We found a club in debt, with liquidity problems," he said. "At this point we have to take a loan to pay the wages of the players.

"The squad were supposed to be paid at the end of last month and still haven't been.

"We'll fix a loan of 150 million euros ($219.34 million).

"The banks know that we have a business plan that will allow them to recover the money.

"The club is not bankrupt because it generates income."

However, Rosell insisted the situation was not a reason to panic.

"The members shouldn't be afraid because it is under control," he said. "We must resolve this tension.

"It can be done in two ways: to have extra income, like selling Chygrynskiy, and/or taking a loan, which is what we have done.

"The previous board had already begun this process. We followed the same path - the same banks, the same target but with a different business plan.

"They (Laporta's board) also knew they needed this credit.

"We hope to sign it this week."

Asked how a club with a turnover of 400 million euros ($584.92 million) could be in such a predicament, Rosell said: "It has spent more than it has made."

Despite the financial situation - and the purchase of David Villa from Valencia - Rosell insists there is still as much as 89 million euros ($130.16 million) to spend on new blood.

"There will be 50 million euros ($73.11 million) to sign more players," he said. "This is the case every year. This is our plan for the future.

"Technically, as of now we have 50 million plus 15 for Chygrynskiy and 24 ($35.1 million) for (Yaya) Toure. In total, 89 million."

That may not be good news for Arsenal fans, who hope to see their captain, Cesc Fabregas, remain in London.

With former Barca youth player Fabregas seemingly keen to return to the Nou Camp, it has become the northern summer's protracted transfer saga.

However Rosell, who is due to travel to South Africa shortly, where he hopes to meet with Gunners boss Arsene Wenger, wants the issue sorted as soon as possible.

"It's now or never," he said. "We'll do it fast. It won't be protracted.

"I'll try to see Wenger in South Africa, then we'll tell you what happens.

"We would not pay the 50-60 million euros that I have read about.

"If Arsenal do not go crazy, he might play at Barca."

[ruud]

ridiculous

all the big spanish clubs seem to have massive loans

[Outlaw 2.0]

So Barca have enough to pay the players wages and do not need to take the loan out to that extent instead they could settle with the players they have and use the rest to pay them as well as a small loan to ensure security which would be payed back after the seasons end.

Keep in mind this club does not take royalties for major shirt sponsor which can sometimes be triple the amount taken out in this loan. They are only taking the loan out as the tv rights they sold are no longer funding the club as the station went bankrupt, poor form on the tv station not Barca.

[homer]

wonder how much their debt is?

[PhilDunphy]

huh? and they still have 89mil to spend on players

[messidona]

Watch the house of cards start to crumble.

[Steelinho]

They need to stop spending so much money on established players and return to bringing in youth to the seniors. They only did it a little bit last season, and now they've already brought in Villa and are supposedly trying to get back Fabregas. Ridiculous.

Taking the title race against Real Madrid so far that they're stuffing themselves up further.

[ozzie owl]

Extent of Barcelona's debt revealed by fresh audit

Barcelona had to take out a loan to pay player wages last month
A new audit into Barcelona's finances have revealed the club's debt is 442m euros (£369.5m) after a loss of more than 77m euros (£64.36m) last season.

The previous board, led by Joan Laporta, had announced the club was 11m euros in the black at the end of June.

But a new audit carried out by Deloitte for new president Sandro Rosell's team reveals a far less healthy scenario.

The news comes as Barca spokesman Toni Freixa said Arsenal are still refusing to negotiate the sale of Cesc Fabregas.

Fabregas has been the subject of a transfer saga which has run all summer, with departed Barca president Laporta and Rosell both left frustrated by Arsenal's tough stance.

Since having a 35m euro (£29m) bid turned down earlier this summer, Barca have made several attempts to speak to Arsenal, but Freixa says the Londoners are unwilling to budge.

"Arsenal don't want to sit down and negotiate with us. It's not a problem with the wishes of Cesc or of Barca - they simply don't want to negotiate," he said.

Fabregas, who still has five years to run on his Arsenal contract, has stated he would like to play for Barcelona, while Barca players such as Andres Iniesta, Xavi and David Villa have all publicly urged the 23-year-old to leave London for the Catalan giants this summer.

Still, along with Arsenal's unwillingness to enter negotiations, it remains uncertain whether Barcelona could afford what would almost certainly be a weighty fee for the Gunners playmaker.

The audit shows that Barca's costs in the 2009-10 season rose to £400m, with their income at £341.7m.

Barca also had to recently take out a loan of around £125m after falling behind with the payment of player wages at the end of June, while central defender Dymtro Chygrynskiy was hastily sold to Shakhtar Donetsk to raise much-needed funds for the club.

Nevertheless, Barca have already signed striker Villa this summer for £33.4m and are willing to spend as much or even more to bring Arsenal midfielder Fabregas to the Nou Camp, Rossell said earlier this month.

[Loppermann]

foreclose damn you, foreclose

[Red-4-Life]

and once upon a time football wasnt all about the money...

[INTERISTA]

Sell Messi

[Ubietz]

Sell Messi

Who can afford him? Man City?

Not likely.

[Steelinho]

Sell Messi

Who can afford him? Man City?

Not likely.

Real Madrid's C team.