Barcelona’s new found aggression in the transfer market has been making headlines across Europe.
They have already agreed a deal to sign from Newcastle United, are in talks over acquiring Julian Alvárez from Atlético Madrid, and have been linked with several players.
What is the more surprising is that this is a club that is still heavily in debt, and which needed to use several creative financial levers just to meet La Liga’s strict financial rules on spending.
But several things can be true at the same time. Barcelona are heavily indebted, but the way that football accounting works means that the cost of any transfer can be amortised over a contract length.
And the Catalans have also benefitted from greater matchday revenue since the expanded Camp Nou reopened, new sponsorship and commercial deals, whist big wage earners like Robert Lewandoski have left the club.
And that means that Barcelona are close to regaining parity with La Liga’s 1:1 rule, meaning that for every €1 a club saves, they can spend that money as well.
They remain one of the most leveraged clubs in Europe, and need to continue to perform well to generate the money to service that debt.
But that may be a problem for another day.
