FC Barcelona entered into a contract with Limak which included a €1 milion penalty for each day of delay in the completion of Camp Nou. Despite missing the deadline, the board of directors declined to enforce the clause. What is the reasoning behind this decision and what implications does it have for the future of the project?

One million euro clause per day of delay

Barcelona signed a contract with Limak in 2022, including a penalty clause whereby the construction company would pay €1 million for each day of delay in the first phase of work on Nou Camp Nou. The deadline for the completion of this part of the construction was set for 29 November 2024 - exactly the 125th anniversary of the club's founding. Failure to complete this phase means that from that date onwards, Limak should theoretically pay Barcelona the aforementioned million-euro penalties.

From a legal and financial perspective, the penalty was intended to safeguard the club's interests and guarantee the timely completion of the project. In practice, however, FC Barcelona's board decided not to enforce it. Why?

© Espai Héctor

Reasons for waiving penalties

The club's decision to do so could bring Barcelona a sizeable cash injection, but the waiver is based on several key factors. The first is satisfaction with Limak's work. FC Barcelona's board has expressed full confidence in the construction company. It has been stressed that Limak demonstrates professionalism and the relationship between the two parties to date has been exemplary. According to Joan Laporta, the club's president, the introduction of tensions between the club and the company could damage the long-term interests of the project.

The club also admits that some of the delays have been due to administrative difficulties that have arisen at various stages of construction. Obtaining the necessary approvals and licences dragged on, making it difficult for Limak to carry out the work according to the original schedule. Barcelona's management was concerned that, in the event of litigation, the company could invoke these circumstances, which would make it difficult to effectively claim penalties.

The Blaugrana board felt that enforcing penalties at this stage could damage the long-term interests of the project. The priority is to complete the construction in a calm atmosphere and any conflict could lead to even more delays. Barça has no plans to enforce the penalties, arguing that the reason is due to UEFA regulations, not the delay in enforcing them.

© Espai Héctor

Controversy surrounding Laporta's decision

The abandonment of penalty enforcement against Limak contrasts with other actions by the board. The club failed to show similar forbearance towards a group of fans who failed to pay a €21,000 debt. As a result, the fans were excluded from the stands during matches at Montjuïc. Such decisions by the board of directors are already triggering another wave of criticism against Laporta's leadership.

There has also been considerable speculation about the very choice of Limak as contractor. The company won the tender, despite the controversy surrounding the selection process and its lack of experience in this type of project. The current attitude of the club's board raises questions about the transparency of operations and the effectiveness of the management of this strategic venture.

© Espai Héctor

Practical complications of returning to Camp Nou

The team's planned return to Camp Nou is also generating challenges.The team's return to the Camp Nou is scheduled for February 2025. Getting fans into the stadium in February would involve a number of logistical complications, including the need to secure the appropriate security permits. Additionally, Limak would only be able to work for three days during match weeks, which would further delay the project.