Barcelona announce €97m in losses, blame COVID-19 for €203m decrease in revenue

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Barcelona have announced losses of €97million ($160M AUD) for the 2019-20 economic year and blamed the coronavirus pandemic for a €203m ($335M AUD) decrease in revenue.

The Catalan club finished the year with revenue of €855m ($1.413B AUD), which they said could have been a record-breaking €1.059billion ($1.750B AUD) were it not for the COVID-19 outbreak.

Barca decreased their expenses by €74m ($122.3M) but still suffered significant losses, though the extension of the season beyond June 30 meant profit and loss items from the end of the season were transferred to the 2020-21 financial year.

There would have been a profit of €2m ($3.31M) rather than a loss of €97m ($160M) had it not been for the pandemic, according to Barca.

A club statement read: "FC Barcelona has not been immune to the outbreak of COVID-19, but its consequences have had a massive effect on the entire sports industry, with widespread losses of revenue among all clubs in all the major leagues due to the restrictions that had to be applied to curb the spread of the disease, including competitions first being suspended and then resuming but with matches being played behind closed doors.

"ECA [the European Club Association] has estimated the overall loss at around four billion euros and Barca, as one of the largest clubs in Europe and with such extensive diversification of its income, is one of the most affected.

"The club suffered financially from the consequences of games being played behind closed doors, as well as the total cancellation of the basketball Euroleague, and hence there was a considerable loss of income.

"The lack of tourists and visitors to the city of Barcelona due to the reductions and limitations applied to international tourism also meant far fewer visitors to Barca's premises, meaning major losses in terms of such areas as visitors to the Camp Nou Experience and the sale of products in official stores."

Barca are provisionally estimating €791m in revenue for the 2020-21 financial year.

Source Omnisport