Barcelona Faces 100 Million Euros In Loss Due To COVID-19 Outbreak

Arturo Vidal (Twitter @fcbarcelona)

JAKARTA - La Liga giants Barcelona are reportedly facing a financial loss of 100 million euros due to the COVID-19 or the corona virus outbreak.

Football across Europe, including domestic and continental competitions, is currently being suspended as part of a country lockdown aimed at breaking the chain of spread of the coronavirus.

The Catalan club confirmed, on the grounds that they would impose an ERTE (Provisional Employment Regulations File), to facilitate temporary wage cuts for first-team players.

According to a report from Marca on Sunday 29 March, the club has chosen to take an unprecedented step. This is done because they are expected to incur a loss of 100 million euros from the discontinuation of football for the next few months.

📷 @oppo | We miss you, 𝘤𝘶𝘭𝘦𝘳𝘴. pic.twitter.com/CW0VVXbMB4

- FC Barcelona (from 🏠) (@FCBarcelona) March 29, 2020

Without a decision on when, or if, the match will be played again, Quique Setien's team could lose ticket revenue, broadcast fees, Champions League qualification bonuses and merchandise sales.

The report also said the potential losses could increase significantly, towards 22-25 million euros if the Champions League was not continued. Yes, La Blaugrana will lose substantial prize money from UEFA.

Because of this, the club wants to cut their wages by 70 percent by 30 June. By doing so, they would save 106 million euros - almost the exact amount they lost.

About ERTE

Temporary Employment Regulations (ERTE) files are procedures that companies must perform when, as a consequence of economic, technical, organizational or production causes, they must - temporarily - suspend all or part of their activities, with the consequence of suspension of employment contracts or reduction. while working hours.

The scope and duration of action for contract suspension or reduction of working hours will be adjusted according to the situation intended to be resolved, in this case the situation originating from COVID-19.

As this is a temporary measure, companies do not need to pay compensation to affected workers, without prejudice to their entitlement to receive appropriate unemployment benefits.

The procedures for processing ERTE have been streamlined, so workers can receive unemployment benefits as soon as possible.

The company will submit an application to the competent labor authority, which will be accompanied by a report confirming the loss of activity as a consequence of COVID-19, as well as, if necessary, appropriate supporting documentation.

Likewise, companies should communicate ERTE requests to workers and, if any, to union representatives.