The Board of Directors of FC Barcelona has approved the closure of the economic year 2023-24 and the budget forecast for the 2024/25 season, which must be submitted for approval by the club members at the Ordinary General Assembly, and anticipates positive ordinary profits of 12 million euros.
“During the Board meeting, President Joan Laporta highlighted that the economic drift of recent years has been halted and that the forecasts of positive ordinary profits of 12 million euros confirmed during the Blaugrana Senate meeting on June 12 and in the media appearance on September 3 have been reaffirmed,” the club stated in a communiqué.
Furthermore, the entity emphasized the “historic record” of income from sponsorships of “over 210 million euros,” as well as the record in revenue from the merchandising subsidiary, BLM, with “almost 110 million euros,” a 72% increase compared to 2018.
It also noted that profits from transfers due to the departures of Dembélé, Kessie, Nico, Abde, Chadi, or Marc Guiu amounted to over 80 million, and that the wage bill has been reduced by 170 million, “from 670 million to just over 500.”
Additionally, Barça recalled that playing at the Estadi Olímpic Lluís Companys results in “a reduction in ordinary income of more than 100 million euros per year,” and that it has faced this drop in ordinary income to “advance as much as possible in the renovation of the Spotify Camp Nou.”
“A restructuring of the sections’ deficits has been completed to adapt them to the club’s financial situation while maintaining sports competitiveness. Basketball has managed to reduce its deficit to historical lows (-10 million euros), and the women’s team has managed to combine generating profits (0.6 million) with winning the ‘Champions’,” it highlighted. Thus, all these factors result in a positive ordinary outcome of 12 million euros.
Regarding extraordinary results, the club has moved to impair a series of accounts receivable related to the actions of the company Bridgeburg Invest, S.L. due to non-payment by some involved investor members. “In compliance with the General Accounting Plan, the club must record this potential non-payment out of prudence, without renouncing the possibility of collecting it in the future and/or taking necessary actions,” it informed.
“The amount recognized as extraordinary expense amounts to 141 million euros before taxes. The club believes there are sufficient reasons justifying the current value of the company and continues to trust in its viability and future capabilities, with an established business plan that will generate recurring income in the near future. For this reason, and although the ordinary result is positive, the club closes the consolidated result 2023/-24 with a net result of -91 million euros,” it continued.
The club also reminded that the first men’s football team will continue playing in Montjuïc “during the first half of the season,” with the goal of “returning to a Spotify Camp Nou with reduced capacity in the second half.” “The club prefers to be cautious with the new format of the ‘Champions’ and has budgeted similar amounts to those reached in previous seasons, but a potential improvement in income from television rights is expected,” it warned.
Regarding the 2024-25 budget, over 250 million in sponsorship revenue and 125 million in revenue from in-person sales and e-commerce are anticipated, and the projected wage bill for the 2024-25 season remains close to 500 million. Finally, Barça expects to repeat a closeout of the year with a positive ordinary result of 5 million euros.
Future Financial Trends for FC Barcelona: Navigating Challenges and Opportunities
FC Barcelona’s recent financial reports demonstrate a cautious optimism amid ongoing challenges. The forecast for the 2024-25 season anticipates significant revenues from sponsorships, projected to exceed €250 million. This reflects a growing trend in sports branding and sponsorship as clubs leverage their global marketability to attract lucrative partnership deals. As the sports landscape evolves, we can expect an increasing emphasis on digital marketing strategies and social media engagement to enhance brand visibility.
The club’s strategy of diversifying revenue streams through merchandising is also notable, with BLM reporting a remarkable €110 million in sales. This trend suggests that clubs are increasingly recognizing the importance of expanding their retail operations, particularly through e-commerce channels. In the digital age, leveraging online platforms for merchandise can substantially augment traditional revenue models.
Another significant aspect of FC Barcelona’s financial future lies in its player transfer activities. The club benefited from a surplus of over €80 million due to player exits, highlighting a transition where teams not only focus on acquiring talent but also on strategic roster management. This approach indicates a growing acceptance of player sales as a viable revenue source, allowing clubs to balance their financial books while maintaining competitive squads.
Despite a projected ordinary profit of €12 million, the club’s consolidated result reflects a net loss of €91 million due to extraordinary expenses related to uncollectible receivables. This underscores the necessity for clubs to maintain financial prudence and prepare for unexpected financial setbacks. With an increasing focus on sustainable club finances, we can anticipate a trend where financial transparency and strategic fiscal management become paramount in the operational ethos of major football clubs.
Lastly, FC Barcelona’s adaptation to playing in a temporary venue while renovating the Spotify Camp Nou exemplifies resilience amid adversity. The ongoing shift from physical stadium attendance to a mixed model involving online fan engagement signals an evolving approach to revenue generation. Clubs may increasingly explore hybrid models that prioritize digital experiences, ensuring fan engagement and driving additional revenue streams even when physical attendance is uncertain.