Barcelona Believes Sponsorship is Keeping Club Afloat
September 15, 2011
FC Barcelona’s vice-president of finance, Javier Faus, believes club’s finances remain in a “delicate situation” and has pin pointed the importance of its sponsorship deal with the Qatar Foundation ahead of a critical vote this month.
Speaking at a press conference addressing Barcelona’s finances for the end of the 2010-11 season and presenting its budget for 2011-12, Faus outlined the club’s position has improved but more work must be done. Barcelona currently has a net debt of Eur364 million ($502mn) and Faus stated that reduction to a level of “just over Eur200 million ($276mn)” is the target.
“We followed an austere line, we’re committed to growth and we’ve reduced the debt, but we’re still in a delicate situation,” he said. “The debt is still too high for us to be able to dictate our future. We can’t afford to owe so much money to the bank, and we need to generate more income.”
The team jersey already bears the Qatar Foundation logo this season, but the club’s general assembly must ratify the €170 million ($225 million), five-year deal on Sept. 24.
Faus said on that without the €30 million ($40 million)a year the club is set to make from the deal this season it “would suffer losses.”
Faus maintained the importance of Barcelona not relying too much on the banks, but revealed that debt levels have been reduced from Eur430 ($593mn) to the current Eur364 million ($502mn) in one season.
“It’s not the debt that we want, and we have to reduce it further, to sustainable levels, with regard to the cash flow generated by the club. We’ll continue to work on it,” he added. Looking to the current season, the club has budgeted for a profit of Eur20.1 million ($27.7), revenues of Eur461.1 million ($636.5mn) and costs of Eur430.2 million ($593.9mn) based on targets of successfully defending its LaLiga title, and reaching the quarter finals of the UEFA Champions League.