FC Barcelona Transfers: Why Barca Must Continue Fiscal Responsibility

FC Barcelona was reported by the magazine Forbes to have gained $602 million during its previous season. The financial magazine went on to say that the Barca losing to Real Madrid in La Liga and Chelsea in the UEFA Champions League made it one of the richest clubs.

While La Blaugrana deserves to be congratulated for its efforts in keeping its financial house in order, it cannot rest on its laurels. It is easy to spend the surplus money received in signing new players, but the results would be a disaster.

Javier Faus, who is the Vice President of FC Barcelona, admitted in a financial report of the club with h/t to Goal of the need to be financially vigilant. The time has come to explain why FC Barcelona must be careful and not indulge in a spending frenzy.

The explanation comes in two reasons.

Debt

According to Goal, the current debt that FC Barcelona has is to the tune of $403 million. In other words, the difference between the surplus and the debt would be $219 million.

If La Blaugrana wants to sign and train new players, it has to maintain financial stability. The same applies if there is a need for renovating Camp Nou or even to buy gear and uniforms for the team.

In order for that to transpire, Barca would have to balance its budget. The debt that Barca has must be manageable.

UEFA Financial Fair Play 

The other reason why FC Barcelona must balance its budget lies with UEFA. UEFA recently adopted a rule called the Financial Fair Play rule.

It applies to clubs that are affiliated with UEFA, and it must be adhered to. According to UEFA, clubs are mandated by the organization to put their fiscal house in order.

The purpose is to help clubs remain viable in the long term. One example of how a club can apply Financial Fair Play in real life was the sale of Zlatan Ibrahimovic and Thiago Silva by AC Milan to Paris Saint-Germain this year.

Tim Fontenault, who is a fellow B/R writer, demonstrated eloquently this example of AC Milan with his article "AC Milan Demonstrate Reality of UEFA Financial Fair Play."

FC Barcelona has to comply with the UEFA Financial Fair Play rules if it wants to compete in events such as the UEFA Champions League. The same applies if it wants to compete in other UEFA related events such as the UEFA Super Cup and the UEFA Europa League.

Conclusion

La Blaugrana deserves praise for its efforts in maintaining a stable financial house. It deserves praise for not falling into the temptation to buy players that can threaten the budget of a club.

Barca also deserves praise for not spending its gains on frivolous products or projects. It appears that the fiscal discipline of Barca and the Financial Fair Play is doing its part to help the club.