Referring to the club's "tragic" position, the president of Barcelona presented a grim picture of the club's financial situation, saying that its debt had risen to €1.35 billion ($1.6 billion), and Juan LaPorta blamed the previous administration of Josep Bartomeu, which eventually led to the departure of his former star, Lionel Messi.

Laporta accused his predecessor Bartomeo of echoing countless "lies," and said that he and his board of directors should be held accountable.

Referring to the difficulty of negotiating with players, Laporta said that the club had suffered losses of €481 million ($567 million) and net negative wealth of €451 million ($532 million).

"Our salaries represent 103 per cent of the club's total income," he added at a press conference. That's 20 to 25 percent more than our competitors... We found ourselves in a difficult position to renegotiate player contracts. "

The club lost its star Messi to Paris Saint - Germain this month because it could not give him a new contract commensurate with the strict financial clean play regulations of the Spanish league.

Laporta explained that the club's debts included some 390 million euros ($460 million) related to player salaries. More than €670 million ($790 million) is owed by banks, while some €40 million ($47 million) has been associated with membership losses.

It was further reported that the impact of the Corona virus pandemic was 91 million euros ($107 million).

She also pointed out that the club planned to reduce salaries by about 200 million euros ($235 million), and it was planned that the focus would now be on the promotion of young players.

It is reported that some of the players who signed for the club during the transfers prior to the new season came through free transfer deals, including Memphis Depay, Eric Garcia and Serjeo Aguero.