The club need to cut their wage bill by over £170 million
La Liga giants Barcelona could go bankrupt 'by January' unless they slash their gigantic wage bill, according to reports in Spain.
The Catalan club have endured a difficult start to the season under Ronald Koeman's tutelage, but the off-field problems are much greater.
The club are in extreme financial difficulty, and the nature of the damage threatens the future of the club.
Just three days ago, Barcelona president Josep Bartomeu resigned.
Not only do Barcelona have an enormous wage bill, but the club has been warned that they also need to generate income from player sales.
Reports in the Spanish media claim Barcelona need to slash salaries at the Camp Nou by at least £170 million - if the long-term future of the club is to be protected.
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According to radio station RAC1, Barca have begun talks with senior players, agents and legal teams with a view to informing them of the financial problems - and the need to cut the wage bill.
Reports suggest an agreement must be in place by next Thursday. If an agreement cannot be reached, Barcelona risk bankruptcy as soon as January 2021.
The wage bill at the Camp Nou has long been an issue, but these problems have been exacerbated by the ongoing coronavorus pandemic.
Before COVID-19 struck Europe, Barca's income sat at around £940m (€1,047m). Wages were around 60% of this.
Since Spain went into lockdown around March, Barca's income has dropped by over £231 million to £746m (€828m). Player wages now take up over 80% of the club's income.
The club have realised this is not sustainable, and have therefore begun to open talks with players with a view to reducing wages.
In order to recoup the £170 million the club believe they need, Barca may also have to call on player sales.
Talisman Lionel Messi looked like he was going to leave the Camp Nou during the summer, but eventually decided to stay. Long-term, the club may need to cash in to avoid financial turmoil.
