The Debt Crisis Behind Many of Football's Biggest Clubs

When you watch FC Barcelona play at the Camp Nou or watch Manchester United play at Old Trafford, it is easy to assume that you are witnessing untouchable financial giants of the European game. Yet, behind the allure is a difficult truth: many of football's biggest clubs are drowning in debt.

Why Clubs Borrow So Much

As investment into the football market continues to grow, along with it grow the salaries of players, the cost of transfers, and the overall cost of staying competitive. As a result, even many of the world's biggest clubs do not produce enough revenue on a yearly basis in order to maintain their level both domestically and within the broader European game.

So, what is their solution?

Debt. Lots and lots of it.

Debt is often justified as an investment: spend big to win trophies now, then use the success to boost future revenue. But this is a high stakes gamble. If a major club misses out on European qualification or fails to secure a top league finish, their income can drop drastically, leaving them in a dangerous financial position.

FC Barcelona: A Case Study

Barcelona is the most infamous example of the debt-glory structure. By 2021, the end of Josep Bartomeu's presidency, the club had amassed over $1,100,000,000 in debt. This financial crisis was primarily driven by years of lavish spending on superstar transfers (which often did not work out) and one of the largest wage bill's in football. In 2020, FC Barcelona had the largest wage bill in the sport of approximately $582,000,000 over the length of the 2019/20 season.

Instead of cutting back under the presidency of Joan Laporta, FC Barcelona chose to double-down. They made big-money signings such as the signing Ferran Torres from Manchester City and Robert Lewandowski from Bayern Munich. In order to finance these moves, the club used several "financial levers." This meant selling large portions of future media rights and various commercial assets in exchange for immediate cash. Long story short, they were trading long-term profit for short-term liquidity.

So far, this risky strategy has paid off for FC Barcelona. In 2021/22 and 2022/23, Barça failed to make it out of the UEFA Champions League Group Stage. Nevertheless, their recent investments in talent such as Raphinha and Pedri, along their trust in the youth academy (La Masia), has allowed them to compete at the highest levels of European football once again.

But in many ways, FC Barcelona has been very fortunate. Their massive fanbase, global brand reputation, and ability to monetize future revenue streams for big-money has given them options most other clubs do not have. The use of "economic levers" may have given FC Barcelona a lifeline, however, the use of these tools would lead to the financial collapse of many smaller clubs.

A Widespread Problem

Although FC Barcelona may be the most visible and well-known example of the debt-glory structure, they are certainly not the only club facing this issue. For example, Manchester United has carried extreme levels of debt since the Glazer family took over the club in 2005. Since then, large portions of Manchester United's immense yearly revenue have been spent on interest payments and shareholder dividends rather than investment in the squad or stadium. As of 2025, Manchester United's shaky financial situation, paired with multiple disappointing big-money transfers, has led them to a 15th place finish for the 2024/25 Premier League season: their lowest league finish since 1989/90.

In Italy, European giants Inter Milan and Juventus have also struggled with debt. Inter Milan has largely relied on outside investors and direct financing by their ownership to remain competitive, while Juventus bet on expensive transfers in hopes of winning the UEFA Champions League and consequently boosting revenue: that gamble never paid off.

In reality, many elite clubs are playing a risky game. Debt may allow them to remain competitive today, but it also leaves them financially vulnerable in the future. Whether these European giants can continue to sustain this level of debt remains one of football's most important questions.