La Liga

Barcelona activate second financial lever which could indicate further transfers

Barcelona activate second financial lever which could indicate further transfers

The answer to the transfers window’s most popular question, how are Barcelona doing it, can be explained by their so-called financial levers. The club recently sold 10% of their television rights for the next 25 years in a deal with Sixth Street, the first financial lever, and now they have activated a second.

According to Sport, Barcelona today signed off on a deal to sell a further 15% of their TV rights for the next 25 years for €400m (£341m) including capital gains. That deal will also be with Sixth Street, taking the total sold to 25%.

Barcelona’s summer spending has been termed a mortgaging of their future.

That deal will help to further lighten the financial load at the club, with their burgeoning €1.3bn (£1.11bn) debt. However the key factor for Barcelona is not their debt, rather being able to register players according to La Liga’s rules. As Barcelona are currently over their salary limit, they can currently only add one third of whatever savings they make to their costs.

However it is predicted that Barcelona will continue to sell assets and are in need of a further €100m (£85m) to reach parity with La Liga’s regulations and register players without restrictions. The board have permission to sell up to 49.9% of Barcelona Licensing and Merchandising, the company that currently commercialises the Barcelona brand.

The material impact of this may be felt by Chelsea. The London club are in negotiations with Sevilla defender Jules Kounde, but Barcelona are also interested in the Frenchman. If Barcelona receive another cash injection, they may will challenge Chelsea for his signature.

 

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