Barcelona face uncertain times as club navigates Camp Nou rebuild and financial crisis


Andy Mitten
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Sunderland, in England’s second tier, boasted a bigger crowd for their league game against Rotherham United this weekend than Barcelona attracted for their opening home match.

There were 10,000 empty seats for the Spanish champions’ game against Cadiz, Barcelona’s first league match to be played at their temporary home, the Olympic Stadium, which seats almost 50,000. Only 39,603 attended the game.

Xavi Hernandez’s side will play there for at least 18 months as Camp Nou is rebuilt and expanded to a 105,000 capacity, making it the biggest football-specific stadium on the planet. Work is well under way and when The National visited on Friday, the entire top tier had been dismantled.

Barca had little choice but to leave. Real Madrid benefitted from the Covid-19 lockdown and being able to redevelop the Bernabeu into what will probably be the best football stadium in the world. The work still isn’t complete four years on, even though they were able to move back in after two years and play in front of a reduced capacity.

Barcelona plan to do similar, but the heavy lifting at the start of the project meant they had to depart. Expanding Barca’s 6,000-seater reserve team stadium with temporary stands was considered, but the best option was the Olympic Stadium since sharing the 41,000-seater home of neighbours Espanyol would not have gone down well with either fan base.

Espanyol played at the Olympic Stadium themselves between 1997 and 2009 when their old stadium was sold to pay off debts and was demolished. It was in one game at the Olympic Stadium that Lionel Messi made his league debut for Barcelona in a Catalan derby, but the venue was never popular with Espanyol fans, though their spell at the ground coincided with half of their entire trophy haul – two Spanish Cups in 2000 and 2006 to go with victories in 1929 and 1940.

A running track – natural since it staged the 1992 Olympic Games – increased the distance between the stands and the pitch, a problem that persists. Barca’s most vocal fans were five metres behind the goal at Camp Nou. On Sunday against Cadiz they were at least 50 metres from the goal.

A section of 2,000 vocal fans tried their best in the August heat that saw fans sheltering in the shade of the monuments built for the ’92 Olympics or even the 1929 International Exposition for which the stadium was originally built, but it’s not an easy venue to create a noise in. For large parts of the game against Cadiz, it was easy to hear the instructions of both coaches being shouted to their players.

August is always an anomalous month for Spanish games. Many residents take the month off and leave the city they call home, affecting attendances.

Barcelona have long courted the tourist crowd in a city that is one of Europe’s most popular destinations and the high prices they charge for those one-off tickets (€150 in the main stand on Sunday, €75 behind the goals) are a key part of their revenue, but season ticket holders rebelled when they, too, were hit with a huge price increase for the move to the Olympic Stadium. Just 8,000 were sold before Barca halved their prices.

Now, the most expensive regular season ticket is €870 while fans in the most vocal section behind the goal pay only €175. Yet, even so, Barcelona have currently sold only 17,500. Second division Espanyol have 22,000 season ticket holders, third tier Deportivo La Coruna 25,556.

The Olympic Stadium, known locally as "Montjuic" after the name of the hill where it is gloriously located above the city, is more open to the elements, isn’t as easy to reach as Camp Nou and requires a trek up the hill with the help of escalators, though it is a splendid walk affording fine views, past the Magic water fountains (which aren’t open since there is a drought in Spain), museums and a Mies van der Rohe masterpiece building.

Construction work is under way at Barcelona's Camp Nou, pictured on August 9, 2023. AFP
Construction work is under way at Barcelona's Camp Nou, pictured on August 9, 2023. AFP

Since most season ticket holders decided to wait until Camp Nou is ready, Barca will have to work hard to fill their new home. Against Cadiz, the first 15 rows of seats behind each goal were empty, creating a poor image on television, though not as poor as any fans who would have to sit in those low seats far from the pitch.

Barcelona have tried to make their new home feel like that, but had to wait until the summer concert season finished and A-listers including Coldplay, Harry Styles, The Weeknd and Bruce Springsteen had staged concerts in the Olympic Stadium. The floodlights have been upgraded, a new pitch laid, press facilities and new VIP areas provided. The work has cost Barca €20 million and the club will lose around €50 million for each season they’re away from Camp Nou.

“We want the members with us and for the stadium to be full for every game,” said Barcelona director Elena Fort. They missed that target for the first game by 10,000.

The stars are now on the football field, established ones including Robert Lewandowski, Gavi, Pedri and Frenkie de Jong. All those names – plus those of Messi – could be seen on the backs of shirts as fans walked to the stadium on Sunday, plus the word "Lamine", 16-year-old forward Lamine Yamal from close to Barcelona and the son of a Moroccan father and mother from Equatorial Guinea.

The rebuild at Camp Nou means Barcelona will be playing at the Olympic Stadium for at least 18 months. AFP
The rebuild at Camp Nou means Barcelona will be playing at the Olympic Stadium for at least 18 months. AFP

The forward came through Barca’s Masia youth system and in April became the youngest ever player, at 15 years and 9 months, to play first team football for the Catalans when he came on for fellow youngster Gavi. Comparisons with Lionel Messi followed given his size and skills. Barcelona have still not scored a goal from a free-kick since Messi left two years ago.

On Sunday, Yamal became Barca’s youngest ever league starter – 16 years and 38 days – in a game that failed to ignite the crowd until Pedri scored eight minutes from time.

“I think he’s so mature and can already make the difference for us,” Xavi Hernandez said after the match. “We have to take care of him, but I think he’s ready and I’m not afraid to trust youth.”

Ferran Torres got the second goal for his side’s first win of the season and the fans who’d booed the referee off at half time left satisfied on a day when nine female Barca players started in the World Cup final, seven of them for victors Spain.

It was a happy day for Barca, but these remain uncertain times for the club as they attempt to rebuild their famous stadium and overcome a financial crisis at the same time.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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EMERGENCY PHONE NUMBERS

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Updated: August 22, 2023, 4:41 AM