The former president of Barcelona Josep Maria Bartomeu and its board of directors estimate the impact of COVID-19 on the accounts of the Barça club at 225 million euros during the 2020-2021 season.
This is stated in a statement sent to the EFE Agency in which they question some of the economic criteria used by the ‘due diligence’ presented last week by the current club’s general manager, Ferran Reverter, who described as “disastrous and improvised” the management of the previous meeting.
According to Bartomeu and his team, to determine the true incidence of the pandemic in the club’s coffers, it is necessary to follow the guidelines of Royal Decree 1162/2020, of December 22, which establishes special conditions for the application ofl guarantee compensation regime on sports corporations, to face the impact of COVID-19.
And that establishes that “for the purposes of calculating the amount of the guarantees, negative economic results will not be considered, in the years affected by COVID-19, the negative changes in the accounting net worth of professional clubs directly linked to the economic impact of COVID-19 “.
Following these guidelines, the outgoing board understands, therefore, that “the most objective formula” to calculate this decrease in revenue in the 2020-21 season is compare them with those obtained in the last season closest to the time when there was no COVID, that is, 2018-19.
From one season to the next, Camp Nou revenues fell by 187 million; commercials, 57 million; those of the media, 16 million; and those obtained by the transfer of players, 70 million. That is to say, that Barça stopped entering 330 million for those concepts.
What’s more, The note puts the reduction in expenses due to the pandemic at 105 million, and not at 125 as the current board reflected in its audit, since Bartomeu and his directors consider that there was also an increase of 20 million in financial costs derived from the pandemic. Therefore, the COVID impact of the season would be 225 million euros.
The statement also qualifies some interpretations regarding the 263 million provisioned by the Laporta board: 79 of them correspond to pending litigation and another 24 million, in principle, “to a non-payment of contract by Nike, sponsor and supplier With which it is already negotiated so that, within the probable agreement, this money, or part of it, can be returned as a benefit, “says Bartomeu.
The previous meeting stops more extensively in the 160 million game due to the deterioration of some players in the squad: “This reclassification and valuation accepted by the auditor, although atypical, is legal, but responsibilities and derivatives are assigned to the manager who executes them. For both losses and gains, if they occur, when the transfer is made. “
“In this sense, it is striking that in budget 21-22, in the transfer profit items figure an increase of 25 million (44% more) where the Griezmann and Trincao operations closed between July and August 2021 already stand out, “the note adds.
“Balance very different if not for the Covid”
For this reason, Josep Maria Bartomeu and his board consider that the result of the accounts for the 202-21 season it would have been “very different” if COVID had not existed and only the usual provisions would have been applied, without atypicals, maintaining the same tax credits indicated in the audited accounts.
Specifically, they estimate that the 555 million losses last year (481 million after taxes) would have been only 50 million before taxes if the pandemic had not existed.
And is that from those 555 million, it would be necessary to subtract the 225 from the COVID impact, the 263 million from the atypical provisions and the 17 million tax credits, according to the criteria of the previous management team.
He also recalls the statement that The current board of directors has advanced the accounts to the compromising members informing them that the club’s net debt as of June 30, 2021 is 680 million euros. And that, taking into account that the total investments made in the development of the Espai Barça is 122 million euros, the adjusted debt is 558 million euros.
“Use the data to deny the interpretations and information that have erroneously used the figure of 1,350 million of net debt, and that, as clarified in the audit notes, the club continues under the accounting principle of ‘Company in Operation’, and in no case of risk of liquidation and dissolution“, Bartomeu and his team specify in their presentation.
“And to finish, we agree with the current board of directors, that despite the terrible impact of COVID in the last 18 months, the club is alive and has assets, brand, land, content, story and support from our sponsors, financial institutions, suppliers, employees, partners and culés of the world to get ahead successfully and reinforced from this difficult stage. Visit Barça! “, Conclude the former president and his board.