The embarrassing saga of Dani Olmo’s failed registration is the latest in a long list of examples of financial mismanagement at Barcelona FC which could heap further financial pain on one of the most storied and historically successful clubs in world football.
A graduate of Barcelona’s famed La Masia academy, Olmo was signed in the summer of 2024 for €57 million from German outfit RB Leipzig. With Barcelona already facing financial difficulties, the transfer was allowed thanks to a temporary registration until the end of the year, with La Liga’s rules allowing such a move to provide cover for a long-term injury. However, Barca now face the very real prospect that the playmaker will be unavailable for the second half of the season after a Spanish court rejected the club’s lawsuit to extend the forward’s registration beyond 31 December 2024.
The ruling could have seismic financial repercussions for the financially beleaguered Catalan giants. It effectively makes Olmo a free agent as he is not registered to any club and while he has stated his intention to remain at Barcelona, it is far from certain that this will be possible. Barcelona would apparently still owe Olmo £41m in wages for the remainder of his contract, which runs until 2030, even if he leaves the club. They are still obligated to pay RB Leipzig £47m as part of the transfer agreement when they signed the forward and would miss out on any potential transfer fee for Olmo, whose market value is currently estimated at £53m, because he is technically not a registered Barcelona player.
The loss of £100m+ on a single player would hurt any club, but Barcelona’s financial position is incredibly precarious, in large part because they keep losing vast sums on player transfers. A decade ago, the club boasted the most potent attack in world football, with club legends Messi, Suarez and Neymar scoring a record breaking 180 goals between them, culminating in a famous Champions League victory against Juventus. The future looked incredibly bright and youngsters coming through La Masia were tipped to take the club to even greater heights.
Fast forward to 2025 and the club is a shadow of its former self, both on and off the pitch. The financial mismanagement is chronic and shockingly self-inflicted. A host of players were signed for vast transfer fees on huge long-term contracts, but failed to live up to expectations – for example, French maestro Antoine Griezmann was signed in 2019 from Athletico Madrid for €120m before being ignominiously loaned back, the promising but temperamental winger Ousman Dembele joined in 2017 for €135m but has since joined Paris SG for around €50m, while Philippe Coutinho joined from Liverpool in early 2018 for an initial €117m; the Brazilian eventually left for Aston Villa for €20m in 2022.
Terrible decisions over transfer policy placed the club into a perilous position.
Joan Laporta returned as President of the club in 2021 promising to get Barcelona back to winning ways and set about attempting to address the club’s crippling debt situation. However, the club’s toxic financial position meant Barcelona were unable to offer Lionel Messi a new contract, culminating in the Argentinian’s departure to PSG the same year where he reunited with Neymar Jr.
Over the past three years, Laporta has focused on short-term fixes, but he hasn’t significantly reduced the club’s debt. He has used so-called “levers” to secure money so Barcelona could pay for and register expensive signings. The aim was to return the club to winning ways on the pitch, which would then generate more income that could be used to fix the club’s financial issues. Yet consistent success on the pitch has failed to materialise, while selling assets has reduced Barcelona’s financial muscle in the long run. Laporta has sold parts of the club for less than their true value to raise immediate cash, including 49% of Barca Studios in two deals worth €200 million, and sold 25% of the club’s La Liga rights for 25 years to Sixth Street.
However, with the cash subsequently splurged on transfer fees and player salaries, the club’s financial problems are ongoing, and Barcelona’s debt remains at around €2.5bn, while their salary-to-revenue ratio is around 70%. The club has won La Liga four times in the past decade and has picked up a smattering of domestic cups, but these successes barely paper over the cracks in the club’s foundations. For most clubs this would be a tremendous achievement, but Barcelona covets continental domination and their last success in Europe came in 2015. To rub salt in their wounds, bitter rivals Real Madrid have won the Champions League five times in the past 10 years.
Laporta’s strategy has largely been a failure and having now pawned the family silver, his and the club’s longer-term room for manoeuvre is seriously curtailed. The problems will only deepen should Olmo’s registration debacle plunge the club into further debt. Fan groups have called for Laporta’s resignation, while clubs across Europe are circling like vultures, hoping to capitalise by signing Olmo on a free transfer.
While many clubs with illustrious histories have suffered difficult periods, what is staggering is the way in which Barcelona have been the architects of their own catastrophic financial demise. Barcelona’s board has seemingly learned absolutely nothing, continuing to sell key assets and flog long term revenue streams to raise cash which is often ploughed into expensive flops who then fail to live up to their epic price tags.
Whether or not Olmo can eventually be registered, the embarrassing affair has further damaged the club’s reputation and weakened Laporta’s position as president. Freddie Mercury’s ‘perfect dream’ is fast becoming a nightmare!
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David Little is a Partner at Bishop & Sewell in our expert Sports Law and Corporate & Commercial teams. If you would like to contact him, please call on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 06 January 2025. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
