Barcelona who has reported a $113 million loss due to corona has begun the process of pay cut to the players, coaches, and non-sporting staff to manage the huge losses suffered due to the COVID-19 pandemic, the club said on October 7.
On October 5 the club released its annual financial report which showcased a loss of 97 million euros ($113.98 million). The members are been notified by the club about the need to reduce the cost to compensate the loss. The notification informs the employees, including players to nominate a representative over the next two weeks for the negotiation over changes in their salaries. The club has been forced to hold all home matches without audience since March, destroying revenue from ticket sales. Income from merchandising and stadium and museum tours is also affected by a huge drop in tourism to the city. The club imposed a 70% temporary pay cut at the end of March due to pandemic, which lasted throughout the duration of Spain's national state of alarm, which ended in June.
The club’s account on Wednesday shows a 14% drop in revenue from the previous year and the doubling of its net debt to 488 million euros. The club's financial troubles rose when it spends on the close season lightening the biggest wage bill in European football, offloading Luis Suarez, Ivan Rakitic, and Arturo Vidal for next to nothing, while selling Arthur Melo for 72 million euros and Nelson Semedo for 30 million. The club only brought in three players, Miralem Pjanic, Francisco Trincao, and Sergino Dest for a combined 112 million euros.
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