Eduard Romeu: 'We've sealed the hole and are on good track for reducing the debt'

FC Barcelona has closed the 2022/23 financial year with a net profit of 304 million euros after taxes, a result higher than that approved in last season's budget. Last season the club achieved an operating income of 1.259 billion euros with operating expenses of 1.165 billion euros. This enabled the reduction of the net debt for the second consecutive season, dropping from 680 million euros on June 30, 2021 to 552 million euros on June 30, 2023. Eduard Romeu, vice president of the economic area, highlighted this Wednesday that "we have managed to seal the hole, but work must continue to reduce the debt to a sustainable amount".

These results have been achieved in a season where the club has improved in all lines of business, recording figures higher than planned. In the commercial area, profits have increased by 43% to a total of 351 million euros, while the club's facilities have generated 229 million euros, 14% more than the budgeted figure. According to Romeu, this is thanks to "the potential of the Barça brand in a year where record sales figures have been achieved in merchandising and ticketing". In addition, there was the extraordinary sale of 15% of the broadcasting rights to professional men's football competitions, which have injected 400 million euros into the accounts.

In terms of spending, this is mainly on sports salaries amounting to 676 million euros. That figure represents 79% of the 860 million in revenue without accounting for the sale of TV rights. Also, about 255 million in management expenses are included, which correspond to the cost incurred by the club for ordinary operations, excluding salary expenses.

No extraordinary income considered in 2023/24 budget

The club expects to make a profit in the current financial year despite the reduction in income resulting from the transfer of men's football matches to the Estadi Olimpic. The forecast is to generate 859 million euros and a profit of 11 million euros before taxes, thanks to an additional effort in the commercial area, a major cutback in ordinary expenditure and a very significant reduction in salaries paid to the professional sports teams. These profits do not include any extraordinary input, meaning that they are solely made up of the ordinary income from the calendar year. "We are returning to ordinary current income" insists Romeu. "That means without extraordinary operations, without levers, or sales."

As in the previous year, the club has improved in its business lines. The budget for 2023/24 foresees an increase in income in the commercial area (from 351 to 378 million euros) and on the average of 216 to 245 million euros, in part, "thanks to the Barça brand, which continues to push the club towards a high degree of global interest." Income has also been boosted by spending cuts and particularly the significant readjustment of the salaries of the football and other pro sports teams (27% less), the feasibility plan to improve internal efficiency, the reduction of operating costs at the Estadi Olimpic and no further extraordinary amounts like those in the 20022/23 season.

In short, the main aim for this financial year is not to make any more extraordinary operations, to continue working on debt reduction and to ultimately achieve a positive net worth. Romeu emphasised "that achieving the goals will entail quite some effort considering that this is such a difficult year what with the transfer to the Estadi Olimpic. We have the situation straightened out, but we need to continue working".

The vice-president has also offered reassurance that the club is calm and confident with regard to the operation announced last August in which Barça Vision and Media can access financing from new North American capital markets. Romeu said that the club is strengthening and consolidating its business model, which includes this operation, and that everything still falls within the initially planned deadlines for the last quarter of 2023.