NEWS ROUND-UP:BENEATH THE gloss of providing seven of Spain's World Cup-winning team, Barcelona's financial problems are mounting. The depth of their financial obligations raises the question whether they could raise the money to secure Arsenal's Cesc Fabregas.

Analysis prepared by Prof Jose Maria Gay, the head of the University of Barcelona’s economics and business unit and Spain’s foremost authority on football finance, presents Barcelona’s troubled 2009-10 balance sheet, which he describes as “very worrying”.

Wage costs have risen 55 per cent from their 2008 level to €262 million. By contrast the club’s stated revenues have risen 33 per cent over the same period, meaning wages now account for almost 64 per cent of income.

Gay points out the club’s short-term debt of €392 million far exceeds their working capital of €110 million and even hints there could be a risk of default during the current close season.

Barcelona have recently approached the market for another €150 million of borrowings, though it is unknown if contracts have been agreed.

The Camp Nou president, Sandro Rosell, insists his club is “not bankrupt”. Even so, Arsenal are not disposed to sell them Fabregas.

Guardian Service