In the summer of 2022, FC Barcelona's president, Joan Laporta, made a series of financial decisions that temporarily alleviated the club's economic woes. The club's debt had exceeded €1 billion, and it was close to bankruptcy. However, Laporta's strategy of pulling financial "levers," or selling parts of the club for immediate cash, brought temporary relief. The American private equity firm Sixth Street bought 10% of Barcelona's domestic TV revenue for 25 years, providing an immediate cash injection of €267m (£229m/$277m). Later, when the club needed funds for new signings, Sixth Street bought an additional 15% for €315 million (£268m/$320m). Barcelona raised almost €700m in a single summer, allowing them to assemble a competitive team.
However, these financial "levers" were not a long-term solution. New signings came with hefty wage bills, putting Barcelona right back in financial trouble. Despite the financial constraints, Barcelona managed to make a few notable signings. The headline-grabbing acquisition was Robert Lewandowski, the prolific goal-scorer from Bayern Munich. Other vital signings included Jules Kounde, Raphinha, Franck Kessie, and Andreas Christensen. These players, coupled with the retention of the talented Frenkie de Jong, bolstered Barcelona's squad and enabled them to compete in La Liga. These new signings brought their own set of challenges. The wage bill increased significantly, and some signings, such as Raphinha, failed to meet expectations. The club's financial woes were far from over.
Despite the financial issues, Barcelona's on-field performance improved under the stewardship of Xavi Hernandez. In his first managerial stint, the former Barcelona midfielder led the club to a La Liga title in the 2022-23 season. The team could have been more entertaining, but Xavi's tactical innovations and defensive solidity ensured they did the job.
Barcelona's financial troubles show no signs of abating, and the club may have to take drastic measures to ensure their survival. The likes of Lewandowski and Ter Stegen are not getting any younger, and their high salaries could become a burden for the club. Barcelona may have to sell some of their star players to balance the books, a prospect that could further damage their on-field performances.
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