5 big football clubs which are in financial trouble
The Covid-19 pandemic blocked off a lot of revenue streams for football clubs and they have struggled as a direct consequence of it. There has been a serious revenue drop over the past couple of years and top European clubs have felt the effects.
Clubs are starting to get extra cautious about their spending in the transfer window and for good reason. But the fact of the matter is that some of the top European clubs were being poorly run prior to the pandemic itself.
Hence, it is safe to say that the pandemic did not create their financial troubles, it only aggravated them. The astronomical values that have been slapped on players are slowly starting to come down as teams look to offload high-earners to balance their books.
Without further ado, let's take a look at five of the biggest European clubs which are in financial trouble right now.
#5 Real Madrid
In their 2020 annual meeting, Real Madrid revealed that they had aggregated a debt of €901 million. The redevelopment of Santiago Bernabeu has been a major contributing factor to Real Madrid's financial issues.
But things are not as concerning for Real Madrid presently as their short-term debt is reportedly in the ballpark of €200 million. It has also been reported that Los Blancos had requested their players to take a paycut in the wake of the pandemic.
They were cautious in the 2020 summer transfer window and sold players like James Rodriguez, Achraf Hakimi, Sergio Reguilon and Oscar Rodriguez. They also sent Gareth Bale and Borja Mayoral on loan.
Real Madrid are hoping to sign Kylian Mbappe this summer. They have also bid farewell to Sergio Ramos as they were not in a place to hand him a new lucrative contract. They are also likely to sell Raphael Varane in the summer with Manchester United being heavily linked with the French centre-back.
However, Real Madrid have just revealed that they closed the 2020-21 financial year with a profit €874,000 after taxes. As such, they seem to be rather sorted for the short-term and have managed the effects of the Covid-19 pandemic rather well.
#4 Tottenham Hotspur
Tottenham Hotspur recently rebuilt their stadium, but the Covid-19 pandemic has pushed them down a slope. Games being played behind closed doors has effectively led to a deficiency in matchday revenue. As per various reports, Tottenham Hotspur have incurred a debt of £589 million.
They are one of the clubs that have been hit the hardest by the Covid-19 pandemic in Europe. Spurs have also failed to qualify for the UEFA Champions League. They have also not won silverware for a long time and there is a severe shortage of returns on investments.
But Spurs are reportedly close to striking a deal for the stadium naming rights. This will provide a much-needed financial boost for the club.