The financial difficulty of Barcelona has worsened, after La Liga informed the Spanish club of its spending limit for the 2023/24 season.
The Catalan club’s spending limit has been pegged at about €270 million, and this puts them in a very delicate position.
Barcelona have battled financial issues in recent years, due to seasons of mismanagement of funds, and unreasonable transfer deals.
This was largely the case during the regime of former president Josep Bartomeu before he resigned on October 27, 2020.
Signings like Philippe Coutinho, who joined Barcelona from Liverpool for €135 million were made during the tenure of Bartomeu.
Ousmane Dembele also joined the Camp Nou club from Borussia Dortmund for €135 million during Bartomeu’s reign.
Both players have since left the club as they failed to deliver, with Coutinho leaving in the summer of 2022, and Dembele leaving for PSG in the summer of 2023.
The 60-year-old was also criticized for dishing out unreasonable salaries to several players, including Lionel Messi.
Anyway, in a bid to get the club back to financial stability, Barcelona have since reduced their wage bill by implementing a strict salary reduction policy.
That has resulted in a massive influx of players leaving the club for other teams capable of funding their wages.
Legendary names like Sergio Busquets, and Jordi Alba departed the club during the summer transfer window to reunite with Lionel Messi at Inter Miami.
Clement Lenglet and Ansu Fati also left the Catalan giants to join English clubs; Aston Villa and Brighton on a season-long loan respectively.
Ghana international Frank Kessie also exited Barcelona for Saudi Arabian club Al Ahli.
Barcelona spending limit for the 2023/24 season
Despite these outgoings, Barcelona have been informed of their new spending limit, which is an almost 50% slash in their spending from last season.
The 5-time Champions League winners were told in February 2023, that they could spend about £558 million.
Unfortunately, that is no longer a given, given the financial realities staring them in the face.
To compound their misery, their current squad and staff costs are about £347 million, which has left the club in a huge deficit of £115 million.
This potential means that Barcelona are sitting on a keg of gunpowder, as they could enter a deficit of their new spending limit by the end of the 2023/24 season.
The Blaugrana side would have to sell some of their high-profile players to balance the books, to have a better spending limit.
If they fail to do so, their spending limit going into the 2024/25 season could be reduced drastically.
La Liga gives clubs a spending limit for each season depending on their financial status going into the campaign.
Xavi Hernandez’s side didn’t splash the cash during the 2023 summer transfer window, as they only acquired Oriol Romeu for £3 million.
Other signings made in the summer came either on a free transfer or loan, or the amounts would be recognized in subsequent windows.
Ilkay Gundogan and Inigo Martinez joined Barcelona on a free transfer, while Joao Felix and Joao Cancelo joined the club on loan from Atletico Madrid and Manchester City respectively.
Meanwhile, arch-rivals Real Madrid have the highest spending limit in La Liga this season, with a bright €727 million.
