Barcelona ‘FAILED to pay Lionel Messi and the rest of the squad their full wages for the second half of 2020’
Barcelona ‘FAILED to pay Lionel Messi and the rest of the squad their full wages for the second half of 2020’ despite players agreeing on salary cuts worth £ 109 MILLION … as the Catalans struggle to cope with rising debt in the middle of the Covid-19 pandemic
- Barcelona is struggling to cope with the consequences of the coronavirus pandemic
- The Spanish giants didn’t match wage cuts with all of their players until November
- This week it also became clear how much Barça still has to pay for old transfers
- But the news of missed salary payments last month is even more worrying
Barcelona did not pay any of their first-team players in December and fears further missed payments as the effects of the coronavirus continue to bite, according to reports in Spain.
On Monday it appeared that the Spanish giants still owe 19 clubs £ 112 million (€ 126 million) in transfer fee.
But the overlook now seems much more bleak as Spanish media report that Barcelona’s financial situation is ‘extremely delicate’.
Lionel Messi was one of a group of first-team players who agreed on a pay cut in November
Reports in Spain claim the Spanish giants did not pay their players in December
Radio transmitter Cadena COPE also claim that not all Barcelona players got their wages last month, although the deficit is expected to be made up in February.
Reportedly, the squad usually gets their salary in two payouts: one in June and one in December.
Barcelona has struggled financially since the pandemic hit European football last March.
December payment is expected to take place in February, but the outlook is ‘extremely bleak’
While other clubs agreed to deferment of payment with players earlier this year, Barcelona only managed to get their entire first team in the end of November.
It was estimated that such pay cuts would help the club save £ 109 million, although they had hoped that figure would be closer to £ 170 million.
Gerard Pique and Frenkie de Jong were among those who received pay cuts in the spring last year, but star names like Lionel Messi, whose salary is £ 500,000 a week (£ 26 million a year), only agreed to reduced terms in November.
Manager Ronald Koeman also took a hefty cut of his £ 10 million a year salary.
Barcelona boss Ronald Koeman took a hefty salary cut from his £ 10 million a year salary
The news that Barcelona failed to pay players last month follows the release of the club’s annual financial report, which shows a massive outstanding transfer debt.
The highest part relates to the £ 25 million the club owes to Liverpool for Philippe Coutinho.
Despite the deal now being three years old, Barcelona still has not covered the £ 142 million total transfer cost.
Barcelona still owes Liverpool £ 25 million for Philippe Coutinho’s January 2018 transfer
The club’s fragile financial condition also came to the fore last week El Confidencial reported that Barcelona had asked a number of major banks to defer debt repayment to help the club’s immediate cash flow.
It was alleged that Barcelona had asked Goldman Sachs, Allianz, Barings, Amundi and Prudential to give them more time to pay outstanding refunds.
In a subsequent blow it was also reported that the club has a negative working capital of £ 535 million, mainly due to a massive drop in revenues caused by behind closed doors most of the past year, while the high wages were still paid.