Barcelona is at risk of bankruptcy unless the club can reduce the wage bill

Barcelona are at risk of bankruptcy if they cannot cut their wage bill by €190m by November 5, with pay talks already underway.

The club’s finances have been hit hard by the coronavirus pandemic, with the tourism industry making up a large portion of Barcelona’s income.

The coronavirus pandemic has affected Barcelona’s financial situation / Quality Sport Images / Getty Images

According to Spanish radio station RAC1 [via Marca]On Friday, negotiations between the lawyers representing the club and the players began again to reduce the wage bill.

The players must agree to a 30 per cent pay cut by Thursday November 5 to reduce the wage bill by €190m or the club will risk being declared bankrupt in January.

Lionel Messi’s current situation is another cause of financial trouble. Barcelona’s talisman is out of contract in 2021, and according to reports in Italy, he is making heavy demands before committing to a renewal – including the signature of Inter forward Lautaro Martinez.

Marca added that even if Messi does not extend his stay at Barcelona, ​​it will cause further financial pressure as the club will be forced to pay him a bonus to reach the end of his contract.

Messi wanted out of Barcelona during the summer/Pool/Getty Images

Managing committee president Carles Tusquets is currently in charge following the resignation of club president Josep Maria Bartomeu last week, and he explained why Barcelona are struggling financially.

“Our main concern is the child’s finances,” Tusquets said. “The pandemic has hit Barcelona particularly hard. The club depends on tourism and has now lost all its income.

“The situation is not very comfortable, we have to adopt the ideas of the previous board to find a way to deal with the problems we are facing.”

Barca’s first team squad agreed to a 70% wage cut while football was suspended in March. Since then, however, the club have again asked the players to take a second pay cut as they look to tackle their mounting debt – but the squad have rejected it.

Barcelona’s financial situation was exposed during the transfer window when they completed a Financial Fair Play-inspired swap deal for Juventus’ Miralem Pjanic with Arthur Melo – six years his junior.

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