Barca admit cash woes

President Sandro Rosell was voted in by club members to replace the outgoing Joan Laporta last month, and six days into his mandate explained that the club's finances needed some urgent work doing on them.

Chygrynskiy, a 23-year-old centre back has signed a five-year deal with the 2009 Uefa Cup winners, who will pay 15 million euros ($18.87 million) for the player.

Chygrynskiy was the first Ukrainian to play for Barcelona after the Catalans paid 25 million euros for him in Aug. 2009.

"We have taken over a club in debt and with liquidity problems, but we are resolving them. Club members shouldn't worry. The club isn't bankrupt," Barca quoted him as telling radio station RAC1.

"This week we will have all the tools in place for a more austere policy, to be able to save on the unnecessary items and to pay the important commitments such as the salaries of the players, coaching staff and employees."

He said a loan for 150 million euros was being negotiated and that the sale of Chygrynskiy back to Shakhtar Donetsk for 15 million euros, a year after buying him for 25 million, was a financial necessity.

Rosell also said a verbal agreement had been reached with coach Pep Guardiola on a two-year contract extension with an option for a third year, that was close to being signed.

The future of Swedish striker Zlatan Ibrahimovic has been another hot topic in the local media, but Rosell said they had received no offers for him and that Guardiola wanted him to stay.

The president is due to fly to South Africa to watch the World Cup and he said that while there he would try to speak to long-standing transfer target, Arsenal and Spain midfielder Cesc Fabregas.

"The signing of Cesc has become difficult, because the expectation levels have been driven up the seller, and this isn't good news for Barca," he said.

"Everyone knows he wants to come, and that Barca want him. You can imagine what Arsenal want to get out of it."

Last week, Barca published their accounts for the 2009-10 season saying revenue had risen 10 percent to 445.5 million euros, compared to 2008-09, boosted by rising income from marketing, player transfers and loans and the sale of a plot of land.

There was however an 18 percent jump in spending to 429 million euros largely due to cash paid out to players in wages and bonuses which amounted to 305 million euros.

The net profit for the period was nine million euros and debt rose to 326 million euros.