tl;dr: Barca, in order to show losses in the FY 20-21, devalued five players, and showed them as losses in the current Financial year. In short term, that meant lower salary cap, a struggle to register players, but after a year, they would be back to normal levels.
I am doing this as a text post because I will refer 2 different links. One is Swiss Ramble's thread on Barca's finances and another is an article by Sport which shows the implications of Player Impairment
On 25th Aug, when Barca published it's accounts, they announced that they made a loss of 481M Euros. If we were to look at simple definition of loss as Revenue - Expenditure, the number was 63M.
The rest of losses came from impairments. Impairment simply means a permanent reduction in the value of a company asset. In football world, that asset is players.
If you look at this accounting statement closely, you see the non cash flow expenses has two entries - player impairment and other impairment at 161M Euros and 110M Euros - which make up buik of the losses.
Other impairment is the money set aside due to estimated expenses for lawsuits and special audits fees (Eg: Neymar lawsuit which was eventually settled, Barca set aside 45M for it, counting as a loss in 20/21 accounts). Others are lawsuits on Bartomeu, and the other ones they are involved in. This is fairly arbitrary number, and if the lawsuits are settled, it would count as automatic profit next season. (especially the Neymar one)
from Sport:
> Of these 122 million, around 84 were for 'fiscal contingencies' and legal fees. Before 30 June, FC Barcelona had set aside 45 million euros for the law suit with Neymar Jr. On 26 July, however, the club announced that it had reached an agreement with the player to withdraw all claims. Accounting law allows for losses in 2020-21 to be classed as profits in 2021-22.
40M are due to a tax case, which has no resolution and classify as a loss in the current period as it is set aside.
Then the player impairment:
> Laporta admitted in last week's press conference that some of these huge losses were due to the devaluation of certain Barça first team players. **the names of five players - Matheus Fern
... keep reading on reddit ➡
Laporta, instead of taking the 3 million owed to Barca from Santos, chose to secure purchase rights of these two players in exchange he’s going to waive the fee owed to us by Santos. Well played Don Laporta and Don Alemany
https://www.google.com/amp/s/www.forbes.com/sites/tomsanderson/2022/01/18/barcelona-secure-purchase-option-on-brazilian-teenagers/amp/
Personally mine is when we beat psg at home 6-1 it one of those moment you rember exactly what you were doing
###Welcome to the 2022 Transfer Reliability Guide update thread! This season has been... very eventful. Many transfers have happened throughout the past 6 months since the last update. Just last summer, we were all constantly refreshing news sites to see what the fate of one certain short, Argentinian player would be. Since then, players have joined and left on various deals. It is especially important now, considering the financial situation of the club, to keep the reliability guide updated to get the most accurate information possible.
##The goal To Re-evaluate the reliability guide based on what has happened since the last update. Journalists and Media are judged based on their accuracy/reliability in reporting transfer rumours. You are welcome to suggest new additions as long as they are relevant to the club.
This is the current reliability guide, and it can be used as a starting point. In this thread, there will be top level comments for each tier (1, 2, 3, 4, 5) and under that comment is where you discuss tier switches, additions, removals, etc. You can make multiple suggestions.
The main focus is to reach a unanimous, community driven consensus on who is reliable or not. Therefore, you are encouraged to have discussions with other user's proposals, agree/disagreeing, clarifying, etc.
That's basically it. Here is the link to the previous year's discussion, as an example.
##An outlook on what each tier means:
-
Tier 1: As close as it gets to receiving the news from an official source. You can guarantee that the information presented is verified and coming from a reputable source, not just speculation.
-
Tier 2: By no means a bad source, just a level below Tier 1. Information shared by the source can be seen as trustworthy, just not as much as Tier 1. Occasionally it can also be interpreted as Tier 1.5 with some asterisks attached.
-
Tier 3: We're entering the hit and miss, 50/50 territory here. Source might have some insider information, but might as well have a rich history of wrong reports. You wouldn't trust them by all means, information could very well be false. Critical reader discretion and common sense here is strongly advised.
-
Tier 4: Untrustworthy journalists or media sources who could occasionally be right once in a while, but usually not the case. c
How do barca not have the money to pay their stars but can afford 55 mil for ferran. It's a good deal for barca. Ferran is only 21 but seeing as he was born on February 29th he is actually only 5 years old meaning if footballers peak at 30, he is a century away from his peak. That's longevity.
11 Games
- 5W
- 4D
- 2L
In La Liga, went from 9th place to 5th - from 18 pts to 31 pts. That's 13 pts added.
With all the injuries we've had, he has yet to settle on a preferred starting XI. What do you guys think of his management so far? What are some positives and negatives you've seen? Assuming all players are fit and Ferran is registered, how do you think he would line up and play?
