Joan Laporta thrives on the thrill of living on the edge. The adrenaline rush keeps him energized and excited, but there are certain situations, especially financial ones, where even the most daring would prefer to avoid the precipice.
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Laporta has gambled by personally guaranteeing millions of euros to bolster the squad and avoid sanctions, putting his own assets on the line in a high-stakes game. Let's delve deeper into this financial tightrope walk and explore the potential consequences.
At the heart of the issue lie two separate guarantees totaling €18 million ($19.3 million) made in 2023. The first, valued at €12 million, ensured player registrations, including key signing Ilkay Gündogan.
The remaining sum covered registrations of other summer signings. Notably, this guarantee was reportedly extended past its August 31st deadline.
Sources close to the club highlight tension within the board regarding these guarantees. Laporta's actions aimed to fulfill sporting objectives and avoid sanctions from La Liga's Financial Fair Play regulations.
However, the board now scrambles to secure the necessary income to avoid triggering the €12 million guarantee, split between a €6 million guarantee and €6 million in promissory notes.
The catalyst for this situation appears to be a failed investment from Libero Football Club in Barça Studios, a significant revenue source Barcelona anticipated.
This €40 million shortfall forced the board to replicate a strategy used previously, including a guarantee for Jules Koundé's signing in 2022.
The next few days are crucial for Barcelona. A €6 million portion of the first guarantee, aimed at compensating for unfulfilled salary cuts in the 2022-23 season, is due on June 30th.
Sources suggest a resolution hinges on the club's fiscal year-end closing. Laporta's board expresses confidence in achieving a first pandemic-era profit, a positive economic step.
Several strategies are in play to achieve this goal. These include securing a new investor for Barça Studios to replace Libero's defaulted payment, potentially renegotiating the Nike sponsorship deal to generate up to €100 million in signing bonuses...
and collecting advanced payments for VIP boxes at the new Camp Nou stadium.
Laporta seeks a multifaceted solution, hoping to close these deals within weeks to provide much-needed financial breathing room.
Laporta seeks a multifaceted solution, hoping to close these deals within weeks to provide much-needed financial breathing room.
This would not only benefit the club's pursuit of reinforcements under new manager Hansi Flick, but also alleviate the risk to Laporta's personal assets.
Emergency Measures: Player sales are another option Laporta considers to avoid triggering the guarantees. While Frenkie de Jong, Ronald Araujo, and Raphinha are all potential departures due to their high market value, these exits would likely be a last resort.
The club now faces a race against time to avoid severe financial consequences. Laporta 's board has shown a lot of confidence in recent days that they are going to close the year with profits for the first time since the pandemic.
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