Barcelona have slumped into the reddish after the coronavirus took a €203m (£181m) chunk out of their profits.
The Spanish leaders, which last year lead the league of football’s highest earning night clubs, reported a post-tax loss of €97m (£87m) for the year to the finish of June, compared with a €5m (£4m) profit a year ago.
The figures are the latest in order to illustrate the stark but different ways in which the pandemic is blending the game’s finances from top to bottom.
While clubs lower down the particular pyramid fear monetary ruin , for Barcelona the crisis has thwarted the ambition to become the first to post yearly revenues of more than €1bn.
Barcelona instead reported revenues associated with €855m (£766m), down 14% from the year earlier. The club stated they would have been €203m higher otherwise for the pandemic.
Barcelona suffered the “considerable loss of income” from video games being played behind closed doors as well as the termination of the basketball Euroleague, in which the golf club also competes.
Solution refunds and lower sales made up a €47m drop-off in anticipated earnings while income from mass media and TV rights fell brief by €35m.
The golf club took a €37m hit upon sponsorship deals that were “at a professional state of negotiation before the pandemic” but could not be completed.
Meanwhile a slump within tourist trips to Barcelona got its toll on numbers going to the world-famous club’s Camp Nou Experience as well as the sale of products within official stores.
The club partially mitigated the slump by reducing costs by €74m via decided salary reductions and temporary redundancies.
Without the pandemic, this estimated, Barcelona would have achieved money of €2m for the year.
The club expects to publish another drop in revenues in the present year to €791m – in line with the assumption that its stadium will certainly partially reopen from December along with 25% capacity, increasing to completely by February.
It does not take latest of Europe’s big night clubs to reveal the financial effect of the pandemic, with Italy’s Juventus last month reporting a €71. 4m (£63. 8m) annual reduction for 2019/20.
Manchester United, the Premier League’s biggest revenue earner, has not however disclosed full-year financial results yet reported a £22. 8m loss for the third quarter to the finish of the March, blamed on the outbreak.
The European Membership Association has estimated that top-flight clubs face a €4bn (£3. 6bn) hit to revenue more than two seasons thanks to the pandemic.
Accountants Deloitte have approximated a £1bn influence on the Leading League alone.
Barcelona’s financial setback comes after it suffered a humiliating 8-2 defeat in order to Bayern Munich in the Champions Little league in August and a much-publicised tale over the possible departure of celebrity player Lionel Messi – which in the end reluctantly agreed to stay.