Barcelona are the richest soccer club in the world, why do they have so much debt if they have money?

FC Barcelona's current financial situation is dire to the extent that they have been limited by La Liga on the extent of the wages they can pay because their debt to income ratio is high and new La Liga rules don't allow the percentage to exceed 100%.

According to a report published by financial website Forbes earlier this year, it ranked Barcelona as the most valuable club in the world with a value of $4.76bn, slightly edging rivals Real Madrid $4.75bn.

Despite being the most valuable, Barcelona's debt has risen to $1.125bn, the highest of any soccer club in the world. This was because of excessive spendings on failed transfers and exorbitant wages paid to players like Lionel Messi, Ousmane Dembele and Phillipe Coutinho amongst others.

Barcelona's revenue dropped by 30% due to the coronavirus pandemic which forced the closure of Camp Nou as well as stores and other income outlets. It could potentially drop further due to the departure of Lionel Messi and the expiration of their shirt deal with Rakuten.