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Financial impact of Catalonia's independence for FC Barcelona

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Certainly, one of the most talked about subjects in the world these last days is the fight for the independence of Catalonia. The dream of becoming independent is very old and FC Barcelona is undoubtedly one of its greatest symbols.


On the other hand, a possible independence would bring impacts to all involved, including Barça. Catalonia's exit from Spain brings enormous financial effects to Barcelona.


And those impacts would be high. An independent Catalonia would have Barça out of the Spanish league. The club would play a still undervalued Catalan league, with its biggest rivals being Espanyol and Girona, just arrived at the Spanish elite.


That would mean a substantial loss of resources, at least in the short term. This is because the TV rights gains by the Spanish League and the matchday revenues of their 19 home games plus the Copa del Rey matches are high.


Barça ended 2016 with revenues of 631 million euros and considering the transfers 679 million euros. This year with Neymar transfer the club´s budget will reach close to 1 billion euros!


According to FC Barcelona financial statement 2015-16, gate receipts for the matches of the Spanish League were 37 million. Another 7.5 million euros are generated with the Copa del Rey and Spanish Supercup. The club makes 44.1 million tickets in national competitions and generates another 45.5 million euros with Camp Nou season tickets holders.


An important part of the stadium earnings comes from La Liga matches and Copa do Rey. The UEFA Champions League generates, depending on the performance, about 11 million euros in ticket sales.


Another relevant aspect of this account is the amount received with broadcast. La Liga TV money has already surpassed 1.1 billion euros a year for its 20 teams. Barça received 168 million euros, value almost identical to Real Madrid.


Another important impact is sponsors ‘revenues, that correspond to another 230 million euros. Leaving the league may affect value with sponsorships and licensing.


So, the independence of Catalonia would have a significant impact on the Barça accounts, at least in the short term. Gate receipts and TV earnings would be reduced, causing financial losses.


On the other hand, this will enable the club to strengthen Catalan football, which in addition to Barça, Espanyol and Girona, has other important teams such as Sabadell, Gimnàstic de Tarragona and Reus Deportiu.


No doubt impacts will be felt in the club financials.

 

 

 

Catalonia would be a new European country

Many people speculated about Barça's participation at the UEFA Champions League.


Many European countries are not members of the European Union and play the main club competition in the world. Thus, a new Barça X Madrid, only at Champions League.

Catalonia would have its selection, its league and places at Champions and Europa League.


It would be like Turkey, Ukraine or Switzerland.

 

This article was written by Amir Somoggi, collaborator of the Sports Business Institute Barcelona based in Brazil. 

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