Spanish giants FC Barcelona and Real Madrid are said to be the most indebted clubs in European football. FC Barcelona are said to be owing €1.12billion, while Real Madrid are said to be owing €901million.
FC Barcelona that are currently battling with administrative uncertainty, since the club’s former president Josep Maria Bartomeu resigned from the club last summer, are said to be in a very big financial crisis. The rising rate of the club’s debt has made it very difficult for the club to sign new players in recent transfer windows.
Just like FC Barcelona, Real Madrid are also battling with rising debt but their situation has not gotten as bad as that of Barcelona. Madrid that were known to be big spenders in the transfer market are also finding it difficult to strike a new deal in recent transfer windows.
The €901 Million Real Madrid are owing and the €1.12 Billion Barcelona are owing are expected to continue to rise since the revenue of the clubs have continued to dwindle.
Recall that since June 2020, major clubs in the world including Real Madrid and FC Barcelona have been condemned to play behind closed doors to prevent the spread of coronavirus. This new system has dwindled the revenue the clubs ought to generate from matchdays.
Hence, some of the clubs have to borrow to continue to pay players and maintain other aspects of the club. This practice is expected to continue until fans start returning to match venues.
According to a report by Diario Sport, Real Madrid total debt has risen to €901million. The publication placed the club’s net debt at €355million. Most of Madrid’s debt were incurred due to the ongoing renovation of the club’s stadium, Santiago Bernabéu Stadium.
On the other hand, FC Barcelona’s net debt is €488million, while the club’s total gross debt is placed at €1.173billion. Out of the gross debt of FC Barcelona, the Spanish club is reportedly due to pay €730million of its debt before the end of this year.
The current rate of Barcelona’s debt might force the club into bankruptcy according to viral reports. Barcelona high rising debts are said to be caused by the amount the club is owing in transfer fees.
As of the time of publishing this report, most top clubs across Europe were yet to make public the rate of their debts. However, it is reported that Premier League club Tottenham Hotspur are owing £534million.
Also, Manchester United are said to be owing over £474.1million which is a 133 percent increment from the £270.5million debt the club owed previously.