Barcelona face a fresh challenge with their increasing wage bill

Barcelona face a fresh challenge with their increasing wage bill FC Barcelona are once again entering territory they know all too well. The Catalans’ wage bill is increasing and, although the club maintain that the situation is under control and that squad costs remain within the parameters recommended by UEFA, the upward trend is something that they need to keep a close eye on, reports AS . This is not an immediate alarm, but rather a question of direction. The Blaugrana know from experience what can happen when such a trend gets out of control. The 2019-20 season remains a particularly relevant reference point. That year, Barcelona’s wage bill reached €636 million, exactly the figure projected for this season. The issue at the time was not simply the amount being spent, but how large that figure was compared with the club’s revenue, which fell dramatically because of the pandemic. “We’ll have more or less the same wage bill as in 2019-20, but back then it represented 74% of revenue and now it would be 53%,” Ferran Olive, Barcelona’s vice-president for economic affairs said. Ferran Olive admitted Barça’s wage bill was rising. (Photo courtesy: X/FCBarcelona_es) In 2020-21, that proportion climbed to 98%, as revenue fell to €631 million. Renewals are pushing costs higher Olive acknowledged that spending on sporting salaries has increased, but argued that the rise is being matched by stronger revenue. “There is an increase in sporting salaries, but it’s in line with revenue. We have a young team and we need to increase salaries through renewals. We have to keep the players,” he staed. That policy is already being reflected in the squad. Deco announced at the club’s General Assembly that Raphinha, Xavi Espart and Marc Bernal will renew their contracts, with improved financial terms. Barcelona’s situation is different from several years ago. The club have reduced the proportion of their revenue devoted to wages and rebuilt their ability to generate income. However, the cost of the squad is rising again, partly as a consequence of the team’s sporting success. Barcelona’s wage bill year after year. (Courtesy: FC Barcelona). Revenue growth will be crucial Barça remain within their sustainability parameters and, according to the current projections, still have significant room. The key will be ensuring that revenue grows faster than expenditure. Barcelona are particularly confident about the commercial potential of the completed Spotify Camp Nou, which is expected to become a major source of revenue once fully operational. The La Liga champions also expect Barça Licensing and Merchandising (BLM) to increase its turnover over the coming years. A tighter situation next season Deco has taken advantage of Barcelona being back under the 1:1 financial fair play rule to make significant signings this summer and renew several contracts. However, there is another challenge ahead. At the beginning of next season, Barcelona are set to return to the Estadi Olimpic Lluis Companys while work continues at Camp Nou. That would mean lower matchday revenue. As a result, Barcelona are almost certain to find themselves above the salary limit again, making the club’s ability to increase revenue and manage squad costs particularly important over the coming seasons.