The exact details of what they are selling off makes this way crazier then I imagined.
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La Liga 2022-23 (3 Viewers)
- Thread starter Mark
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This has the possibility of exploding horrendously in Barca's face and really collapsing the club from a financial standpoint.
They are gambling their future on the bet that they will be able to fully recover from their current mess and right the club quickly and thus pay off debt quickly and then rebuy their sold assets back again (there supposedly are clauses within these contracts to do so) and only suffer small economic losses on the interest of the short-term sale.
The problem is if the club doesn't right themselves quickly on this, they will be pressed with no "levers" left to pull to fix things and truly fall apart.
They are gambling their future on the bet that they will be able to fully recover from their current mess and right the club quickly and thus pay off debt quickly and then rebuy their sold assets back again (there supposedly are clauses within these contracts to do so) and only suffer small economic losses on the interest of the short-term sale.
The problem is if the club doesn't right themselves quickly on this, they will be pressed with no "levers" left to pull to fix things and truly fall apart.
They just sold 25% of the a huge chunk of receivables for the next 25 years. They do have other relevant sources of income, but all in all, it's like taking a loan and compromising at least 15% of all your income for the next 1/4 of a century. Without mentioning the rest of the debt.
Man, they are really destroying the club. Crazy. There's a reason why other clubs don't do this. Every giant could do it. I think it won't be long until it backfires. They are setting themselves to become smaller.
Man, they are really destroying the club. Crazy. There's a reason why other clubs don't do this. Every giant could do it. I think it won't be long until it backfires. They are setting themselves to become smaller.
I think they're banking on commercial revenue more if they can get backing to being a top 4-5 club. Without on-field success especially in CL they could fall off the radar like Milan, especially with the emergence of EPL clubs like Spurs and Newcastle as potential european elites.
They're probably also expecting tv money to be out of their control with a more EPL-like split of LaLiga tv money which would cut their numbers.
They're probably also expecting tv money to be out of their control with a more EPL-like split of LaLiga tv money which would cut their numbers.
To be fair, they do have the option to purchase back those rights in the future but at a fee. I think they BELIEVE and tell themselves this is a short-term loan but in reality it is hard to guess what the future will hold. And if things go from bad to worse, they have mortgaged off their future already. They have pulled all the levers already so there is no where to go but bankrupt at that point.
So lets say if you get a job that take you to 1m USD per year, would you get 20x250k=5m now but they will take 250k for the next 25 year 25% whatever you get from your active job. I will and buy a mansion with that money, rent the mansion for passive income then I retire so I will pay them 0 for the next 25 years lol
@lgorTudor the real question I have is who is rugging who? is barça rugging Socios or is it the other way around
