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Barcelona is now entering financial crisis territory and is at risk of bankruptcy in January next year, according to reports in Spain.
The Spanish giants have a dazzling salary bill that is paralyzing the club and they are said to be in urgent need of a cut of around £ 170 million.
Today began talks with the legal representatives of the players of the first team about the current situation and their current salaries, according to the RAC1 of Spain.
A deadline has been set for next week, Thursday, November 5, for the club to come to a resolution and determine exactly how finances will be put in order in the future.
Barça have to agree to pay cuts before November 5 to be able to announce the budget for this season.
Current revenue is projected at £ 746 million (€ 828 million), a drop of £ 231 million, which means players are now being asked to make long-term sacrifices.
Player salaries in Catalonia stood at 61 per cent of club income of £ 940 million (€ 1,047 million) before the coronavirus pandemic took hold.
Since then, income has been reduced to 746 million pounds, which means that wages would become more than 80 percent of total income, which is not sustainable.
Sportsmail understands that an initial round of talks on Friday was positive and that the players understood the situation and were happy to work with Carles Tusquets, the interim president.
The most likely and expected outcome is that the players agree to receive the same salaries but for an extended period.
This is essentially the case for goalkeeper Marc-Andre Ter Stegen, Frenkie De Jong, Clement Lenglet and Gerard Piqué, who have already agreed to their contract extensions.
Barca hopes to do this across the playing team, and it would not mean that players’ salaries are lowered, but rather that their payments will be restructured and paid in smaller installments to help cash flow.
The news comes after the departure of president Josep Bartomeu, who left the club last week and left after months of constant criticism.
Earlier in the year, Barça senior players made a series of pay cuts in line with the club’s battle against the crushing effects of the coronavirus pandemic.
It was announced in early October that the Spanish giants would undertake another round of cuts, after revealing a loss of profits of £ 88 million.
Players received a 70 percent pay cut in March to ensure non-gaming staff received their full pay in the pandemic that shut down the sport.
It’s not yet clear whether new talks about pay cuts would give the team the power to terminate contracts and walk away for free.
A key issue the club has had to grapple with before going ahead with the planned cuts is how another reduction would affect the Spanish Workers’ Statute.
A report by the Spanish publication Marca affirms that judicial sources in Spain have indicated that players and employees may have the legal right to terminate their contract if the agreements are modified for financial reasons.
The ongoing pandemic means that Barça have lost in all areas, and its massive Camp Nou stadium no longer benefits from the massive arrivals of paying fans, while the absence of tourism in Barcelona has left shops and resources of the club suffer as a result.
Barça’s limited transactions in the transfer market were due in large part to the financial armageddon the club is fighting for.
Coach Ronald Koeman made Lyon striker Memphis Depay a prime target, but Barcelona were unable to finance a deal for the Dutchman on the deadline.
Barça were also linked to Manchester City’s Eric Garcia and Liverpool’s Georgino Wijnaldum, although deals for neither player could be completed in time for the summer window.
It is understood that Barca and Koeman still have great interest and will return for the two stars as their current contracts near expiration.
Source: m.allfootballapp.com
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