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Despite months of negotiations leading to a new, lucrative sponsorship deal with Nike, Barcelona still have a long road ahead in their quest to comply with La Liga’s 1:1 Financial Fair Play rule, as per a recent report from La Vanguardia.
The club recently confirmed the multi-year agreement with Nike, effective from this season.
This new contract solidifies Nike’s position as Barcelona’s main partner and will help boost retail merchandising and the global distribution of official kits and accessories. Yet the financial benefits may fall short of expectations.
Barcelona yet to be out of the woods
As per the report, the Nike deal is expected to bring in significant revenue—potentially €1.7 billion until 2038.
However, the distribution model complicates matters. The funds are spread over 14 years, rather than being paid as a lump sum.
Barcelona are not out of the woods yet (Photo by Eric Alonso/Getty Images)Specifically, Barcelona are set to receive a bonus of €100 million, which rather than being paid upfront, will be staggered until 2038.
La Liga yet to review the deal
League insiders have not yet reviewed the details of the contract but believe that these staggered payments won’t be sufficient for Barcelona to restore the 1:1 rule.
Barcelona also acknowledge this challenge, conceding that the deal, although substantial, won’t solve their financial difficulties overnight.
To achieve full compliance with La Liga’s strict financial regulations, Barcelona may need to secure additional agreements under the Barça Vision project, which focuses on long-term revenue streams.
While the Nike deal certainly aids the club’s financial recovery, it appears more measures will be required to stabilize the club’s finances in the short term.