Yes to everything. The economic situation of the club, marked in the last two years by the sale of assets - popularly known as 'levers' - to obtain green numbers obtained the approval of the compromising partner. Also the future with a very ambitious budget for the 23-24 academic year. Now without 'levers', Barcelona aspires to earn 859 million, compared to the 1,259 million it billed last season. Ambilight TV, Barça's new traveling companion, will help in this process by sponsoring the sleeve of the shirt and providing technological synergies for the future Camp Nou. There was practically no reluctance. Everything was approved by a majority and with a maximum of 462 delegate members connected out of the 4,451 convened in the fourth telematic assembly in the club's history.
Firstly, Laporta's board achieved the approval of the commissioners for the 2022-23 financial year, which closed with net profits of 304 million euros, with operating income estimated at 1,259 million and operating expenses of 1,165 millions. Secretary Josep Cubells pointed out that 462 delegate members of the 4,451 called exercised their right to vote. The accounts for the 2022-2023 financial year were approved with 376 votes in favor, 45 against and 25 blank.
These positive figures are explained, as recognized by economic vice president Eduard Romeu, by the extraordinary income of 400 million that Sixth Street Partners paid to the Barça entity for 15% of the La Liga television rights of the first men's soccer team during the next 25 years. This American fund already acquired, in its day, another 10% of the same television rights in exchange for 267.5 million.
The other operation that allows Barcelona to close with positive figures is the imputation, as Romeu explained, "from a non-monetary accounting point of view" of the 51% ownership of the Bridgesburg Invest club, the company created to carry out the sale of Barça Studios, 49% of which is held by Libero Football Finance A, the private investment advisors NIPA Capital BV, Socios.com and Orpheus Media. It should be remembered that Libero has not yet paid the expected 40 million euros and that Barcelona does not rule out seeking another partner in this operation, titled by Romeu himself, "financial engineering." “But for the moment it is the company with which we have the agreement and we hope to be able to have the payment,” Romeu warned.
Without these operations, the club would have recorded losses of approximately 200 million euros in the last financial year. “Thanks to extraordinary operations we have been able to solve these numbers. We don't hide. But we have a historical record of stadium commercial income. The Barça brand remains powerful. The work of our sponsorship and marketing team is very intense. Income always has a longer maturation period, but we are already seeing results. We are close to having positive equity. 500 million negative funds have been rinsed. This had to be recovered for the peace of mind of the partners and for credibility and solvency in the eyes of investors," explained the economic vice president.
Although one of the issues that most worries Romeu and the current board of directors is the debt, which amounts to up to 1.2 billion euros, according to the entity. "There was 1,350 million in debt when we arrived and we have reduced it to less than 1,200. The debt is important and it has to occupy us. There are two important components, the structure and the cost. We have to return to the virtuous circle and recover the illusion of Barcelona fans "There were matches with mid-table teams with 90,000 people. The six leagues that have been won are very important. Not qualifying for the Champions League meant not earning 23 million," Romeu added. All of this without taking into account the operation to finance the construction of the Espai Barça. "The Espai Barça is necessary. Firstly because of the obsolescence of the stadium, which did not meet the requirements of being the venue for a final, and on the other hand because we need more income. Expenditure has a limit and when you touch bone it no longer “You can shoot more,” said Romeu.
Regarding the item of expenses that amounts to 1,165 million, 100 more than budgeted, the economic vice president pointed out that “there is an increase in sports expenses of 20 million compared to the approved budget because we allocated some amounts to this year. The management expenses of 255 million represent what the club needs to function, discounting salaries. They have grown by 11 million compared to what was expected (BLM expenses, match expenses, Masia and medical services, legal services, banking services, part of television rights for the League, travel, etc...).
The 171 million in the item referred to 'other expenses', which have grown by 67 million, correspond to losses in transfers (97), deterioration of players (26), non-sporting amortizations (35), the Foundation (8) and late payment and others (7)", he broke down. “There is also 13 million in sponsorship intermediation and we owe 208 million euros to other clubs in terms of transfers,” Romeu responded to one of the commissioners who sent his question electronically.
The reduction of 184 million euros in the sports salary bill is another of the most notable items in the reduction of expenses with a view to the next year. "We have a wage bill of 676 million euros. With the club's ordinary income (860 million) we would be at 79% of the ordinary income, but if we look at the total income we would be at 54%," Romeu explained. He did not want to reveal the names of the first team players who have helped. "I do want to say that the captains helped, they finished their time early and that one player made an additional effort," he said, referring to the departures of Sergio Busquets, Gerard Piqué and Jordi Alba.
With the stabilized contracts of the first team, the club hopes to stabilize the sports wage bill next year at 492 million – the lowest figure in the last eight years – compared to the 676 million cost this year. 402 million will correspond to the first team's salary bill. “The 492 million are the salary mass of the entire club, with all sections. It is a very important containment effort. It is the lowest wage bill budget in the last eight years. We have tried to do it without lowering the quality of the squad,” Romeu said.
In addition, Barcelona plans to reduce other expenses related, mainly, to losses due to player amortizations, by 98 million euros. Added to this is the application of the viability plan to reduce the club's day-to-day expenses, to which is added the lower operating cost of the Montjuïc Olympic Stadium, which implies a reduction of another 50 million euros.
With 372 votes in favor, 37 against and 12 blank (421 votes cast out of the 437 connected at the time of the vote), the board also obtained approval for the budgets for the 2023-24 season, when it plans to achieve a balance between income and expenses without having to resort to the sale of assets.
Without 'levers', Barcelona aspires to earn 859 million, compared to the 1,259 million it billed last season (32% less), while expenses will be 832 million, 333 million less than the last year. “When we were commissioned to make the viability plan, the objective was to cover the hole, with the ordinary losses of 200 million. We have had to make hard and painful decisions,” said Romeu, referring to the closure of Barça TV which, according to the club, meant an expense of 12-13 million euros. "We had to reduce spending to 205 million euros and it is not an easy task," Romeu added.
In terms of income, FC Barcelona hopes to compensate the 78 million that it will no longer receive from Spotify Camp Nou due to its move to the Lluís Companys Olympic Stadium by earning 28 million more for its participation in the Champions League - it hopes to reach at least the quarterfinals after two seasons being eliminated in the group stage. “Exile has a cost of about 78 million. There are two games going up that we are very proud of. The FCB Botiga that we have in the stadium works, but the attendance is lower. The attendance at the Museum is also lower. We don't have a percentage of match days either. The team anticipated and we have been able to open eight new stores, including the one in Madrid that works very well,” said Romeu.
Another 27 million are also planned, derived from the expected growth in the sponsorship section. Precisely, the commitment partners must ratify whether they approve the Ambilight TV sponsorship agreement which, beyond sporting the Philips technology brand on the sleeve of the men's first team shirt, is also one of the most important partners for the team. club in the future Spotify Camp Nou. "We cannot reveal the financial agreements because we have a confidentiality clause," said Juli Guiu, vice president of marketing. "But we ask for an act of faith. The shirt is an asset that we take care of with extreme priority. According to Global Data, the Barça shirt is the most valued in the world of football. The agreement represents a strategic collaboration. We hope you give us confidence "Laporta stressed.
With its main design and engineering offices in Amsterdam and Ghent, Ambilight TV is an exclusive system from TP Vision, the brand that provides the screens from China, which Philips televisions implement. "This agreement has been signed with TP Vision, a company with more than 2,000 workers and a presence in the United States, Europe and the Middle East. This agreement signed on May 25 has a duration of four years and we have the possibility of extending it for two years more, until the 2028-29 season. We will have the logo on the sleeve in the first team matches in all competitions. With this agreement we will have a new official provider of screens and digital signage solutions for the Spotify Camp Nou. The brand Ambilight TV will also have a presence on the advertising panels, the u-television and the advertising banners of the goals," Guiu added. The partner gave his approval to the new Barcelona traveling companion with 326 votes in favor, 39 against and 24 blank.
Within a series of synergies that will be launched soon, one of them will be very visible. Thus, starting in November, in the different establishments and stores where Philips televisions with Ambilight TV are sold, customers who are interested in one of the brand's devices will see images of Barcelona with a video shot during the last tournament. Joan Gamper, played in Montjuïc, and in which Xavi Hernández's team beat Tottenham 4-2. Images of the city of Barcelona are interspersed in the aforementioned video.
The assembly will close with the report of the members' trustee, the partners' proposals and an open session of interventions with questions asked by videoconference or in writing.
