The whole communiqué of Bartomeu on the results of the 'Due Diligence'

Of this way Josep Maria Bartomeu and his managerial board puntualizan the words of Ferran Reverter, current CEO of the FC Barcelona, after knowing the results of the 'Due Diligence': "The Managerial Board of the FC Barcelona chaired by Josep Maria Bartomeu, from 23 January 2014 until 27 October 2020, wants to make public a series of puntualizaciones that consider necessary, headed to the partners of our club, in sight of the last events like the presentation of the settlement of the exercise 2020-21 and of the next celebration of the planned Assembly for this Sunday 17 October.

In the first place, put end to a debate, that only can be apparent, on one of the agreements that the Managerial Board of the Club will subject to approval of the Assembly of Compromisarios, in concrete the approval of the Annual Accounts of the exercise 2020/2021 that they are (only can be), an only economic exercise that goes from 1 July 2020 until 30 June 2021, without that it was legally possible to subject to approval "stretches" of CCAA or similar, and having very present that the responsibility concerning the approval of the mentioned accounts (by imperative of the article 34.1 of the Code of Trade) concrete the obligation indicating that to the closing of the exercise, the employer will have to formulate the annual accounts of his company, that will comprise the balance, the account of losses and gains"

Cleared this question, and not having doubts when to the responsibility of the current Managerial Board of the closing and results of the exercise, would want equally make observations around:

To. ACCOUNT OF LOSSES And GAINS

1. How it has been the enormous incidence of the Covid in the settlement of the season for the real understanding of the financial and economic states of the FC Barcelona. In front of the exceptional fact of the world-wide impact, unforeseen and of enormous dimension of the Covid, that has meant also a fact of extraordinary importance in the world of the professional football and in the FC Barcelona, want to express and concretise of irrefutable way and aclaratoria which real consequences has had in the accounts of the exercise 2020-21, as our board suffered the gravity of this sudden and very grave economic situation, social and sportive from 14 March 2020.
2. Analyse and stand out the games of Provisions and extraordinary Depreciations proposals, and that because of his impact in the results announced deserve an analysis aclaratorio deeper.

• B. BALANCE: Explanations on the Level of Net Indebtedness of the Club
• C. CONCLUSIONESA. ACCOUNT OF LOSSES And GAINS1. The IMPACT COVID. ROYAL DECREE 1162/2020

The season 2020-21 has been the most affected regarding income of the modern history of the club as it ascertains it the fact that the Camp Nou did not open an alone time his doors and in the Palau Blaugrana alone could go in 1.000 viewers on 4 June 2021, after 456 enclosed days. It results evident that the prohibition of assistance to the installations in an entono of confinement and of severe restrictions of mobility and of meeting during all the year has had a brutal impact in the economy of the City, (zero fairs for example), with a special incidence in the sector of the tourism and directly in the economic activity of the FC Barcelona regarding the exploitation of the Camp Nou, main source of income, and of his Barça-Stores in the City.

In the first place, to determine which has been the true impact of the Covid in the activity of the Club and the incidence in the management of the same, it is necessary to follow the guidelines of the Royal decree 1162/2020, of 22 December of the Central Government, whereby establish special conditions of application of the diet of compensation of guarantees regulated in the additional disposal third of the Royal decree 1251/1999, of 16 July to face up to the impact of the COVID-19 and that determines the following:

"To effects of the calculation of the quantity of the guarantees will not consider negative economic results, in the exercises affected by the COVID-19, the negative variations of the countable net heritage of the professional clubs directly linked to the economic impact of the COVID-19.The administrators of each club will present a state in which they reflect the variations patrimoniales refusals directly linked to the COVID-19, considering the losses of all type of income linked to the COVID-19, the savings and the increases of costs associated directly to these losses of income and the others savings that have derived of the application of the legislation approved for paliar the effects derived of the COVID-19 and/or destined public helps to such purpose and quantifying the incidence in the countable heritage of the economic impact suffered to consequence of the COVID-19". In base to these indications the impact of the Covid in the account of results audited can resumir of the following form: To. Reduction of Income

Following these guidelines, the games of unambiguous income and directly affected, recognised like cause of Covid by the decree, are those that reflect a "notable decrease of the main games of income". In the case of the FC Barcelona, the most objective formula to evaluate the true variable of the descent of the income is to compare the really obtained income in the season 2020/21 and compare them with the obtained in the last more next season in the time that there was not Coivd, that is to say the 2018/19, with more reason because it did not give any significant extraordinary fact as it was the year of the traspaso of Neymar and of Turns it of the Classical (the season 2017/18).

The impact Covid in the decrease of income quantifies in 330 millions. It is necessary to add that this formula is more conservative that the pointed in the point 5 of the informative note of Ties It To it issued the past Monday 11 October, where evaluate this incidence in a rank of 349 and 384 Millions.

B. Reduction of Costs:

Here we split of the figure of savings obtained by the incidence Covid presented in the Due Diligence financial of 125 millions, corresponding with the savings achieved in the mass salarial fruit of adjust them made in October with the players (60 millions), and the savings for keeping closed the installations (65 millions).

Here, under our criterion and following the guidelines of the RD 1622, it is necessary to consider besides the increase of the financial costs derived of the following concepts and figures: 20 Millions by: Upper half indebtednesses caused by the lack of income less the savings of the COVID: (330 MM – 125 MM) x 5% x 1 year = 10 MM. Note: 5% is the financial half cost estimable of market by additional credits without any additional guarantee

Greater automatic financial cost in the bonos of 200 MM to 5 years by the incumplimiento of the covenants derived of the impact COVID: it represents 1% additional by the incumplimientos of June 20 and December 20: 200 MM x 1% x 12 months = 2 MM / 200 MM x 1% x 6 months = 1 MM.

Additional financial commissions estimated by renewals policies in period COVID: 2MM• Anticipos discounted to face up to tips of tesorería caused by the lack of income derived of the impact COVID. 90 MM x 5.5% x half 12 months = 5 MM.

• The incidence in the savings achieved resume in 105 millions:
• I SAVE PLAYERS 60 Millions
• I SAVE ENCLOSED INSTALLATIONS 65 Millions
• FINANCIAL INCREASE -20 Millions
• C. The total impact of the Covid is of 225 millions: REDUCTION INCOME 330 Millions. REDUCTION COSTS -105 Millions. TOTAL INCIDENCE COVID 225 Millions

3. PROVISIONS And ATYPICAL DEPRECIATIONS

It is necessary to call the attention on the following games stood out in the presentation of the audit to the news media the past day 6 October (Pág. 20) that does reference to the Closing 2020/21, and that sand elevate to 263 Millions:

• To. Deterioration of players 160 Millions
• b. Other Deteriorations 24 Millions
• c. Other Provisions 79 Millions

In the first place, the Auditor indicates, in regard to these passive contingents, that "This evaluation and quantification presents a high degree of trial by part of the Managerial Board of the Club and, therefore, has been a significant subject in our audit".

On the other hand, in his internal report to the clubs that integrate it, LaLiga describes as 'atypical' these games of losses of provisions by minusvaloración of players and deteriorations of the FC Barcelona of the exercise 2020-21.

To. Deterioration of Players: As it gives off of the Memory of the Audit this significant figure of 160 Millions bases in a proposal of the current Managerial Board that, to own initiative, formulates the accounts reclasificando some players –does not detail any name by logical reasons of confidentiality understand– "of active in operation of the Club", to "transferibles in a term estimated inferior to 1 year". When it does this reclasificación, the value that assigns to these active is the "minor of his value in books and the one who assigns an independent expert".

This reclasificación and assessment accepted by the Auditor, although atypical, is lawful, but the responsibilities and derivative are assigned to the agent that executes them. So much by the losses as in the gains, if they produce , when it does the traspaso. In this sense, calls the attention that in the Budget 21/22, in the games of profits by traspasos appear an increase of 25 millions, (44% more), where already stand out the operations of Griezmann and Trincao enclosed between July and August of 2021.

In this sense, is interesting to remember that a sentence of the Provincial Audience of Barcelona (Section 16ª) Sentences 87/2010 of 15 February, elevated to firm by the High court, declared that the initially included provision in the exercise 2002-03, by the same concept of minusvaloración of players, by 63,8 Millions, decided by the Managerial Board entrante on 22 June 2003, corresponded him to the same, as it was that new Together the one who had taken the decision of minusvalorar players and sell them inside his mandate and no in the previous. The sentence sustains in that "the board aprovisionó the loss that knew went to produce in an immediate future to consequence of his decisions".

b. The deterioration of 24 Millions understand that it corresponds fundamentally to a non-payment of the agreement by part of Nike, sponsor and provider with which already negotiates so that, inside the likely agreement, this money, or part of him, can give back like profit. That is to say, here also the decision of the provision bases in a trial of value of the current Board.

c. The 79 remaining Millions correspond to provisions of litigios, mostly referred to records of no compliance with Inland revenue and pending inspections that, being the same of the previous exercise, where already were foreseen of form cautelar 16,2 Millions, the same auditor did not suggest neither demanded any additional provision. This additional provision can be related with the conflicts in litigio with the player Neymar, although as it indicates the note 13.3 of the audit, in July of the 2021 the Club arrived to an agreement with the Player although the Club had won in First Instance one of the litigios in question. How in the previous epigraphs, the decision of this significant provision is subjective and therefore responsibility of the one who proposes it.

SUMMARY PUNTUALIZACIONES ACCOUNT RESULTED EXERCISE 2020/21

The summary of the impact in the accounts Audited if, as we explained, there had not been Covid and only had applied the usual provisions, without atypical, and keeping the same fiscal credits aimed in the accounts audited, the final result had been the following:

4. ADDITIONAL CONSIDERATIONS

• In the section of the incidence of the Reduction of Income by traspasos, it is necessary to add that this formula is more conservative that the pointed in the point 5 of the informative note of LaLiga issued the past Monday 11 October, in which they evaluate this incidence in a rank of 349 and 384 Millions,(vs 330 Millions) put that in the incidence of traspasos give margin to use like indicator the average of the traspasos achieved in the last 3 or 5 years.
• Before our exit of the club, on 27 October 2020, in front of the reality and the perspective that did not open finally the installations in all the course instamos to the celebration of a Table of Negotiation Salarial that finished the Managing Commission and activate the renegociación of agreements (substantial impact in the volume of saving).
• In this analysis has not had in consideration the hypothetical entry of the whole or a part of the designated Barça Corporate, although it had proposed interesting, minimum of 220 Millions by 49%, that had been able to help in everything or part in the exercise 20/21 analysed. Instead, yes we observe that a part of the sale coparticipada of Barça Studios already is foreseen for the exercise 2021-22 with a financial entry of 50 millions.
• In spite of our ignorance, LaLiga announced, proposed and approved the agreement with CVC, by the cession and exploitation of a percentage of the audiovisual business compensated, in the case of the FC Barcelona, with an interesting entry of 270 millions that the directive refused before the closing 2020-21. Now it seems to be that this refusal is not so rotunda and that there is some predisposition to negotiate an agreement for the season 2021-22.

B. NET DEBT ADJUSTED OF 558 MILLIONS

As they detail the annual accounts consolidated in his point 21.4 (ratios of control) in the page 66 of the report of audit, the net debt is of 682,2 millions. The current directive, in his advance of the accounts has sent to the partners compromisarios a comment evaluating with some detail this concept: "The net debt to 30 June 2021 is of 680 Million euros. Taking into account that the total of the investments made in the development of the Espai Barça is of 122 million euros, the debt adjusted is of 558 million euros, situating the ratio statutory marked in the article 67th of the Statutes of the Club, of Debt/EBITDA, in -9,26, clearly by on in this occasion of the maximum limit marked of 2".

It serve the data to deny the interpretations and informations that have used wrongly the figure of 1.350 million net debt, and that, as it remains cleared in the notes of the Audit, the Club follows under the countable principle of "Company in Operation", and in no case of risk of settlement and dissolution. It remains like this cleared to the partners the real volume of the net debt, and remember that hto been also object of the impact Covid in a degree stood out.

Finally, and in reference to some news published relative to the possible cause of dissolution by losses of the Club, is evident that -by the reasons that are- has obviado also the forecast of the Royal decree law 16/2020, of 28 April, of procedural and organisational measures to face up to the COVID-19, that in his article 18 has that the losses that generate in this exercise 2020 (and until January of 2021), will not take in consideration to effects to determine the concurrence of the cause of planned dissolution in the article 363.1 and) of the text refundido of the Law of Societies of Capital. Therefore, simply it is not true that, to date of the resignation of the previous Board, the Club was in cause of dissolution, since, besides, the norm like this had it.

C. CONCLUSIONS

• The Club has left of ingresar a minimum of 330 Millions in the exercise 2020-21 owing to the pandemia• The losses proposed incorporate 262 millions by provisions and unusual deteriorations and that LaLiga describes as atypical• The Managerial Board that closes the exercise is the only manager of the economic results.• The net debt audited, adjusted with the Espai Barça, has been of 558 Millions and no of 1.350 Millions• In no case, neither in any moment, the Club has been in risk of settlement or of dissolution

Finally, it does not do lacking to say that we celebrate that the current Managerial Board subject to the Assembly the approval ofl to finance of the Espai Barça with the same structure negotiated with Goldman Sachs, that is to say with guarantees of the future income, giving like this continuity to the institutional effort and patrimonial, that has closed does few months with the definite refusal of the disputes presented to the MPGM, once consensuada with practically the whole of the political strengths of the City council of Barcelona. Always we have considered it a project of club of main strategic importance that, with adjust them that it touch to do, already can initiate the second phase, in Them Corts, after the construction of Johan Cruyff in the Ciutat Esportiva of Sant Joan Despí, the internal ring of the Camp Nou and the first works of urbanisation of the surroundings of the neighbourhood.

And to finish, coincide with the current Managerial Board, that in spite of the terrible impact of the COVID in the last 18 months, the Club is alive and has active, mark, terrains, contents, relate and support of our sponsors, financial entities, providers, employees, partners and culés of the World to go out forward successfully and reinforced of this difficult stage".