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Today, FC Barcelona has publicly presented its accounts for the end of the 2020/21 financial year, which will have to be submitted to the approval of the delegate members at the Ordinary General Assembly convened for 17 October. CEO Ferran Reverter has detailed the figures for a season marked by the call for elections and the change of Board of Directors, as well as the ongoing Covid-19 pandemic. Barça is revealed to have closed the 2020/21 financial year with revenue of 631 million euros, well below the 828 million set in the budget, which forecast a profit of 1 million euros. The result was 481 million euros in after-tax losses, caused by both falling revenues and the inability to contain spending.
Revenue of 631 million, 26% less than budgeted
The operating revenue figure of 631 million euros in 2020/21 represents -26% less than the 855 million euros of the previous year (decrease of -224 million euros) and is -24% below the budgeted 828 million euros. The revenue figure this season is significantly marked, as remarked above, by the global Covid-19 pandemic. This impact, calculated according to the criteria set out in Circular No. 3 of the LaLiga of 7/07/2021 is 92 million euros. Therefore, the result of the 2020/21 season without the impact of Covid-19 would have been -390 million euros.
The most affected area in terms of loss of revenue has been the Stadium, which has made 25 million in revenue (-84% compared to the previous year). The estimated impact of Covid-19 is 181 million, mainly due to the inability to open both the stadium and the other club facilities.
The Commercial section achieved 268 million euros of revenue (-10% compared to the 2019/20 season) but the estimated loss of revenue is 56 million and comes mainly from the closure of stores (42 million), as well as the impossibility of going on any tours last summer.
282 million have been raised in media and TV rights revenue, but this was -14% down on the previous year, with a drop of 7 million due to Covid-19, which has been offset by an additional 25 million due to the postponement of the 2019/20 La Liga and UEFA Champions League, which meant income from television broadcasts of the matches played in July and August was transferred to the accounts for the 2020/21 season. In this case, without the impact of the pandemic the club would have made even less, mainly due to the team being eliminated from the UEFA Champions League in the round of 16.
Finally, in the Others and Transfers section, with income of 56 million euros, there was a decrease of 92 million euros with respect to the previous year caused mainly by poorer outcomes from player transfer operations.
Expenses up by 19%
Operating expenses have increased by 19% compared to the previous season, from 955 million to 1,136 million euros, an all-time record figure at the club. As with income, the Covid-19 pandemic meant the club made savings on costs of 125 million euros, either due to agreements between the previous board and the players, whereby the latter deferred payment of their salaries until later seasons (about 60 million euros) and savings in administrative expenses as a result of not opening the Stadium or its stores (about 64 million euros).
As for non-sports salaries, these are in line with the previous season, with a slight reduction of 1 million euros (-2%).
Finally, the Other Expenses chapter witnessed an increase by 281%. On the one hand, there has been an increase in tax, legal, labour and arrears provisions, as a result of the recognition of certain liabilities that had not been recognised, and pursuant to the recommendations established in the Due Diligence. On the other hand, the book value of certain overvalued players has been revised, following the LFP valuation criteria.
Balance of accounts
The net debt on 30 June 2021 and according to the criteria set out by the LFP is 680 million euros. Considering that the total investments made in the Espai Barça project and other extraordinary investments amount to 122 million euros, adjusted debt is 558 million euros, a Debt/EBITDA ratio of -9.26, which is above the maximum limit of 2 set out in Article 67 of the club’s Statutes.
Regarding treasury and equivalents, the club has closed the year with available cash of 63 million euros. The bank debt is 533 million euros, an amount corresponding mainly to the various long-term debt issues that the club had on June 30, as well as to the loan for the financing of the Espai Barça and other extraordinary investments.
As for net worth, the losses of 481 million in the 2020/21 financial year have led to a negative balance of 451 million euros at the end of June.
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