LaLiga English

Reported bankruptcy threat for Barcelona over salary cut deadlock

Barely has one major issue been put to rest at Barcelona and yet another impending threat is already looming menacingly ahead. Less than a week after the resignation of president Josep Maria Bartomeu and his board, the Blaugrana giants are reported to be likely facing the potential threat of financial bankruptcy due to the growing issues over a second round of salary cuts at the club.

The Catalan giants have been in a deadlock in protracted talks with their first team squad over a potential second pay cut this year in the last month with no amicable agreement reached as yet, with the squad rumoured to be out of consensus over whether or not to accept the wage reduction.

According to reports from Spanish radio station RAC1, via Marca, the club needs to reduce their current wage bill by 30%, estimated at €190m, before November 5, with the failure to reach an agreement ushering the La Liga club into bankruptcy proceedings as early as January 2021.

Interim president Carlos Tusquets has already warned that the growing economic crisis at the club is a real issue with the Barcelona presidential elections possibly delayed until later in 2021.

“Our main concern is economic,” the same report from Marca wrote.

“The pandemic is especially affecting Barcelona. The club depends on tourism and now there is none. We have to collect the ideas of the previous meeting and remedy the ills that affect us.”

The club are expected to meet with senior players on November 2 to discuss the next stage of negotiations with a temporary deal the most likely outcome.