Spanish giants Real Madrid and Barcelona are going through a financial crisis right now and they are on the verge of being bankrupt.
Both clubs were in considerable debt before the pandemic and the Coronavirus has piled further pressure on them in an economic sense.
Several European clubs have missed out millions in matchday revenue and sponsors because of the ongoing health crisis and it will be interesting to see how Real Madrid and Barcelona cope with their increasing debt.
Several players from both clubs have been linked with a summer move and it will be interesting to see if there is a massive exodus at the end of the season.
According to reports, Real Madrid has a gross debt of around €901 million compared to Barcelona’s €1.17 billion.
The Catalan giants will have to pay a significant amount of their debt this year or they could face severe legal consequences.
One of the major reasons behind their crippling debt is the lack of trophies recently, revenue loss due to the pandemic and transfer expenditure.
As far as Real Madrid are concerned, the renovation of Santiago Bernabeu has left him with a burning hole in their pocket.
Both clubs need to invest in top players in order to establish themselves as European elite and it will be interesting to see if they can fund moves for their top targets this summer in the current circumstances.
