The huge challenge facing Joan Laporta

Laporta was keen to talk, to explain himself. As he said in yesterday's press conference, he wanted to "put into context" Barça's numbers and explain the reasons for their precarious financial situation. But he also wanted to take the opportunity to send a message of optimism and trust, giving the fans faith that his board would be able to "reverse" the "enormous hole [in the club's finances]" inherited from the previous board. He appeared in Camp Nou's Auditori 1899 alongside the other members of the board of directors to do so. In this two-hour press conference, he dedicated more than thirty minutes to addressing each point contained in the public letter released by ex-president Josep Maria Bartomeu.

A nightmare scenario

In one of his first responses to the letter, he labelled his predecessor a "liar" and described Bartomeu's presidency "an exercise in despair [in which] he took advantage of a moment of certain upheaval, which doesn't sit well with me". Laporta warned that "nobody will run away from their responsibilities", and said he is yet to decide whether these will be addressed through an action for liability or a lawsuit.

He then went on to talk about the club's accounts. He spoke of a total debt of 1.35 billion euros, with total losses reaching 471 million euros in the 2020-21 season alone. He commented that the club lost 91 million euros as a direct consequence of the Covid-19 pandemic, because 126 euros of associated expenses must be subtracted from the projected losses of 217 million. He stated that the club's working capital is minus 551 million euros and that the club's total net worth is minus 451 million euros, describing the club as in "a very delicate situation". In short, he painted a nightmare scenario of the club's financial situation.

A hopeful message

Despite all of this, there may be light at the end of the tunnel. Laporta revealed that the club have obtained a loan from Goldman Sachs for 595 million euros which they have used to refinance their debt, with a low interest rate of 1.9%. He said that they have managed this thanks to their six-point Strategic Plan, which was drawn up to explain to those who must help the club recover from this situation that the club is financially viable, that is is not bankrupt and that it will have a successful future. In fact, Laporta went as far as to say that "within a couple of years, the club will be in a healthy financial state".

The president is clear in his convictions: "I am strong, I am keen to address this challenge", he said, before claiming that this decision to "start again" will be justified when they start to win trophies again.

Wage cuts

The board are trying to reduce the first team squad's wage bill by 200 million euros, because they are currently paying "far more than their closest rivals". 103% of their income is currently being spent on player wages, despite the fact that "it is recommended to spend no more than 65 and 70%" on salaries. On this topic, he heaped praise on 'second captain' Gerard Piqué: "He's made a sacrifice that not everyone would be willing to make", before adding that "we hope the other captains will follow Piqué's lead" and that "negotiations are going very well". Once negotiations have been finalised with the four club captains, Laporta will turn his attention to getting "other first team players" to agree to a wage cut.

Touching once more on the topic of Leo Messi's departure, Laporta reiterated that he had taken the decision in the best interests of the club. He stated that, thanks to his departure, the club have managed to make substantial savings on their wage bill. On Messi, he said "I wish him every success at PSG, he looked very happy in Paris". He tried to give a diplomatic answer, but it was clear that he still has a sour taste in his mouth by the rapid manner in which he signed for PSG and his change of mood in a matter of hours.

A new era

A few minutes before the end of the press conference, Laporta was handed a slip of paper by the club's Director of Communications. He then spoke of the "dawning of a new era in which we, the fans, need to be united. While the club may face short term issues, our middle and long term future look promising".