July 15, (THEWILL) – UEFA has issued a warning to Spanish football giants Barcelona and Real Madrid regarding their financial practices.
The continental football governing body has declared that sales of future revenue streams must now be counted as debt rather than revenue in the clubs’ financial records. This decision comes after Barcelona was fined €500,000 by UEFA for misreporting profits from intangible asset disposals. The Catalan club had entered into deals in 2021 to sell off merchandising and TV rights, as well as their in-house production studio, to generate immediate cash flow.
Similarly, Real Madrid is under scrutiny for reporting €122 million in “other operating expenses” in their recent financial records. Both clubs may face challenges complying with the new Financial Fair Play rules, which limit expenditure to a percentage of revenue and impose a maximum loss of €60 million over three years.
Barcelona and Real Madrid have been working to secure additional revenue through the sale of future revenue streams. However, UEFA’s intervention has shed light on irregularities in the clubs’ financial reporting.
The imposition of fines and the classification of these sales as debt rather than revenue will have significant implications for their financial operations and ability to comply with FFP regulations.
About the Author
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
