The Effect Of Economic Lever Activation And Player Contract Restructuring On The Financial Sustainability Of Fc Barcelona

Abstract

_{This study examines the effect of economic lever activation and player contract restructuring on the financial sustainability of FC Barcelona during 2020/21–2024/25. The study uses a quantitative causal approach with an explanatory time-series design. Secondary data were obtained from FC Barcelona's audited annual financial statements and purposively selected for five fiscal seasons. Economic lever activation is proxied by the Debt to Asset Ratio (DAR), player contract restructuring by the Wage to Revenue Ratio (WRR), and financial sustainability by Return on Assets (ROA). Multiple linear regression was employed to test partial and simultaneous effects. The results indicate that economic lever activation does not significantly affect financial sustainability (t = −1.604; p = 0.250), while player contract restructuring also has no significant partial effect (t = −0.489; p = 0.673). Simultaneously, the two independent variables do not significantly affect financial sustainability (F = 1.768; p = 0.361). The model produces R = 0.799, R² = 0.639, and Adjusted R² = 0.277, indicating that 27.7% of the variation in ROA is explained by the two predictors. Descriptively, however, the data show that economic lever activation was associated with short-term liquidity support, whereas player contract restructuring was accompanied by a decline in the wage-to-revenue ratio. The non-significant statistical findings should be interpreted cautiously because the sample contains only five observations. The study concludes that short-term financial recovery strategies need to be accompanied by sustainable operating revenue and stronger long-term financial discipline.}