Barcelona gets hit by major financial turmoil as club's debt nears $1.5 billion

Barcelona's annual financial report has revealed that the Spanish giant have a mammoth debt due to the coronavirus pandemic and some big-money transfers in recent seasons.

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According to the Barcelona's financial reports released on Wednesday, the club revealed debt reaching $1.5 billion, along with the short-term debt of roughly $886 million. As per the release, Barcelona's biggest area of spending is its wage bill, an area of spending that represents 74 per cent of the club's income.

The release also revealed that club owes around $153 million to other clubs for the transfer deals that took place in recent years. The Catalan giants owe $35 million to Liverpool for the signing of Philippe Coutinho, $19million to Ajax for Frenkie de Jong and nearly $12 million to Bordeaux for Malcolm, with each requiring payments by June 30. The club also owes money to Gremio and Bayern Munich for the purchases of Arthur and Arturo Vidal, who are no more a part of the club.

Club's revenue from match tickets has been null since fans have not been allowed in the stadium due to coronavirus pandemic for almost a year now. The club was set to earn $68 million in the ongoing season with the return of the fans but the surge in cases has put the plan on hold, keeping the stadium empty. 

The only way the club can survive the current crisis is by letting their star forward Lionel Messi go. Messi's wages have been taking the club's financial situation from bad to worse, and if the Argentine decides to stay in the club, he will have to undergo a cut in salary.