New Delhi: Barcelona is facing more financial trouble after losing an appeal against a hefty fine imposed by UEFA. The Union of European Football Associations fined the Spanish club €500,000 ($542,000) for “wilfully and consciously” misreporting their income in 2022. The Court of Arbitration for Sport (CAS) dismissed Barcelona’s latest appeal and criticised the club for its actions, calling the fine “rather mild” considering the severity of the offence.
The issue revolves around how Barcelona reported income from deals involving their broadcast rights. In 2022, the club sold off 25% of its future La Liga broadcast earnings for the next 25 years, securing €667.5 million ($724 million). However, UEFA found that the club had deliberately misrepresented a portion of this deal in its financial accounts, overstating its break-even results by €267 million ($290 million). UEFA’s financial rules are designed to ensure responsible spending by clubs, and Barcelona’s reporting was found to violate these rules.
#FCBarcelona have lost an appeal at CAS against 2022 UEFA FFP sanction of €500,000. The club had tried to submit €267 million from sales of future TV rights (10% over 25 yrs) as FFP compliant revenue. CAS upheld fine, which panel described as ‘actually rather mild’
— Sam Wallace (@SamWallaceTel) October 18, 2024
According to UEFA, Barcelona’s income from the broadcast rights sale should not have been included in its financial statements, as it involved “non-tangible assets” that do not count toward the club’s financial break-even calculations. As a result, the club was fined last year. Barcelona, however, felt the fine was too harsh and appealed the decision to CAS, only for the court to uphold UEFA’s decision.
CAS stated that a smaller fine would not be a strong enough deterrent to prevent a major club like Barcelona from deliberately misreporting income in the future. The court further stressed that this is a serious violation, and Barcelona’s actions needed to be “condemned in the clearest terms.” It also highlighted that Barcelona’s claim of the fine being disproportionate was unfounded.
The ruling adds to Barcelona’s ongoing financial woes, which have been well-documented in recent years. The club was forced to let go of their star player, Lionel Messi, in 2021 due to financial struggles, and this latest ruling only adds to the pressure.
Barcelona has also been ordered to pay UEFA’s legal costs of €11,000 ($11,556) as part of the ruling. As the club tries to navigate these challenges, this court loss signals that financial mismanagement will not be tolerated, no matter how large the club.
CAS dismissed Barcelona’s appeal, stating that the club’s deliberate misreporting of broadcast rights income violated UEFA’s financial fair play rules. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
