FC Barcelona is once again getting into trouble as it has been revealed that UEFA has begun an investigation into the club for allegedly breaching Financial Fair Play (FFP) rules.
Sanctions seem likely, which could impact their Champions League campaign. Although Barcelona was already fined €500,000 for previously misreporting financial information, these sanctions could be even stricter, including bans on player registrations or point deductions from participating in UEFA competitions.
The investigation stems mainly from Barcelona’s sale of 25% of their TV rights in 2022 for €400 million over 25 years.
Barcelona referred to this income as “other operating income,” which UEFA disagrees with, stating that the income should have been listed as “gains on losses on intangible assets.”
UEFA believes this income could not offset FFP shortfalls. This is the same issue that led to the initial fine, which Barcelona then contested at the Court of Arbitration for Sport (CAS), but lost.
In addition, Barcelona’s financial ‘levers’ have sparked controversy, as La Liga accepted this (and other) income as ordinary income, yet UEFA did not, as reported by ESPN.
Barcelona responded by issuing a statement, given that the club has just gone through UEFA’s financial audit.
“The conclusions and possible consequences haven’t yet been notified to the club,” a source told ESPN, putting emphasis on the limited argument around the classification of income.
Barcelona believes it is within the La Liga criteria and must await UEFA’s final decision.
In unprecedented fashion, Barcelona’s financial situation is under intense scrutiny, given that their ability to earn a European placement is on the line.
The decision could impact Barcelona’s ability to participate in the Champions League after attaining a La Liga Championship, as the situation develops.
The football world will keep an eye on how UEFA and Barcelona, one of Europe’s giants, get on together in this unprecedented chapter of financial distress.
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