LALIGA SANTANDER
Barcelona “to make mass layoffs” in addition to extending credit facilities
LaLiga leaders Barça continue to be linked with former star Lionel Messi despite their ongoing financial issues and cost-cutting.
Things are looking rosy for Barcelona on the field, with a 12-point lead over Real Madrid at the top of LaLiga meaning a first domestic title since 2019 is all but in the bag. Off the field, however, is a very different matter. The club are the subject of a number of investigations due to the Negreira refereeing scandal, they are unable to sign any new players – or even register current ones on improved contracts – until they drastically reduce their wage ball. On Thursday, they announced they had extended credit facilities with two Spanish banks and it has now been reported that a significant number of club employees will lose their jobs as part of cost-cutting measures.
Barcelona statement on credit facilities
A statement issued by the club on Thursday announced the extension of credit facilities - amounting to €49.5 million - with CaixaBank and Banco Santander over the next three years. It read:
When it comes to [the] policy [credit facility] with CaixaBank, which was set to expire on 30 April 2023, it has been extended until 30 April 2026, for a maximum amount of 17 million euro[s].
When it comes to the policy [credit facility] with Banco Santander, which was set to expire on 15 May 2023, it was also extended for three years until 15 May 2026, for the amount of 32.5 million euro[s]
The approval of both operations strengthens the club’s position regarding its ordinary operating activities and is testament to the confidence in the entity [the club] among banking institutions.
A term which caught the eye of many was ‘ordinary operating activities’, which usually refers to general expenses such electricity, water and gas bills, as well as employees’ salaries.
How many Barcelona employees will reportedly lose their jobs?
Which leads us on to Friday’s revelations, with Catalan public broadcaster TV3 reporting that the club is planning to lay off 120 of its employees in an attempt to reduce costs.
The news further raises eyebrows when it comes to Barça’s supposed plans to bring Lionel Messi back to the club next season, or recruit any number of players that they have been linked with for 2023-24.
The Catalan giants are also about to undertake the Espai Barça project, which includes the redevelopment of Camp Nou, Estadi Johan Cruyff, where Barcelona Atlètic and Barcelona Femení usually play their home games, and Ciutat Deportiva Joan Gamper, their training ground and academy base.
We can only assume that president Joan Laporta has a plan…