Why is Lionel Messi joining PSG from Barcelona?

Lionel Messi broke down even before he spoke. There was a round of applause as he stood on the stage, bawling his eyes out. And then the bombshell dropped: “After 21 years I’m leaving with my three Catalan-Argentine kids. We’ve lived in this city, this is our home. I’m just really grateful for everything, all my teammates, everyone who has been by my side.”

“I gave everything for this club from the first day I arrived to the last. I never imagined having to say goodbye as I didn’t think about it.”

Up until then, many Barcelona faithfuls wished there was a possibility that Messi could stay. That it was all just a strategy by club president Joan Laporta into getting LaLiga to back down on the financial rules. Many felt players could be offloaded in the next couple of weeks to make space for Messi. And if there’s someone who deserves that gesture, it is him. Alas, it wasn’t to be.

A standing ovation followed soon after as Messi tried to compose himself. The ovation lasted for nearly two minutes. Sitting in the room were former and present players, members of the coaching staff, board members and in the front row was his wife and kids.

💔 pic.twitter.com/gN1C9R66x2

— FC Barcelona (@FCBarcelona_es) August 8, 2021

After 21 years, 17 seasons with the first time, 778 appearances, 672 goals, 10 league titles, six Ballons d’Or, four Champions League trophies, it’s all over for Messi and Barcelona. Last year it was Messi who expressed desire to leave but the club didn’t allow it. Now, with his contract having expired, the club can’t even register him. “We were convinced we were continuing here, at home,” said the 34-year-old.

Messi’s version of events

Messi arrived from his post-Copa-America-triumphant holiday in Ibiza to sign and continue with the club, not to leave. “I thought it was all sorted, but at the last minute because of the league [financial controls] thing it couldn’t happen,” Messi said. “It was all agreed but it wasn’t to be. After the elections, I went to eat with the new president and we talked. And after that I was quite convinced that I would continue, that there would be no problem. My contract was never a problem. After that what happened, happened. I never had any doubts: we were decided, we would [stay].”

“Laporta said we couldn’t do it because of the league [rules]. I can tell you that I did all that I could to stay, because I wanted to stay.”

He added: “We were all convinced that it was going to happen. We had it all sorted out, there was no problem, and we were always honest with people. It wasn’t to be because of the reasons we said but from my point of view, I never misled anyone. I don’t know the full mechanics of [the league’s salary limit criteria], all I know is that it wasn’t to be because of the league, the club’s debt and the club didn’t want to get more into debt.”

The only way Messi could stay was if there was some fantasy scenario. An incredibly late twist of fate, a last minute salvation — something Messi had done numerous times at Barcelona. But this was not in his hands alone. And it was not a situation that arose amidst the COVID-19 pandemic, as clubs struggled financially. Of course, things have become tougher in the absence of fans but the roots of this saga go back to previous president Josep Maria Bartomeu and his board.

Barcelona’s shambolic finances

Thank you, Leo. pic.twitter.com/cdS9xWe8Me

— FC Barcelona (@FCBarcelona) August 5, 2021

“The numbers are a lot worse than the numbers that were exposed initially. The salary total is 110% of the income of the club,” said Laporta on Friday.

“What we cannot do is keep prolonging the agony, making things longer. Two days ago, I reached the conclusion that we had to say enough and we could not do it.”

Barcelona’s losses last term amounted to $578 million with their debt astronomically high at $1.39 billion. Laporta said he expected the losses to be in the region of 200 million euros ($236 million) when they took over from Bartomeu’s board.

The biggest challenge? The Blaugrana were paying 110% of their earnings towards salaries. Without Messi, it would only drop to 95%. So even if Messi agreed to play for free, it wouldn’t have worked. The Argentine admitted that he had agreed to take a 50% paycut to ensure he stayed “home” but the crippling finances wouldn’t allow the club to register Leo as a player in the squad.

It is worth pointing out here that Messi is one of the reasons for Barcelona’s dire situation. His previous contract was worth a jaw-dropping 555 million euros ($652m) over four years, the highest of any sports person, and included 115 million euros ($135m) just for signing the deal and 78 million ($91m) as a “loyalty bonus”.

By extension, other players were paid handsomely as well to ensure some sort of parity in the dressing room. Marc-Andre ter Stegen, Gerard Pique, Jordi Alba, Samuel Umtiti, Sergio Busquets, Miralem Pjanic, Philippe Coutinho, Sergi Roberto, Frenkie de Jong, Antoine Griezmann, Ousmane Dembele, Francisco Trincao are all on over €100,000 a week contracts. At its peak, Barcelona’s wage bill for 2019-20 was at €671 million ($786 million).

To accomodate Messi in the negotiations, and to tiptoe past the financial regulations, Barcelona and the player agreed to a two-year contract with payments made over five years.

Even then, Barcelona were required to make savings of around €200 million ($234 million) this summer by selling players and cutting salaries. The club made no real headway in this regard, bar selling young players, while the big wage earners continue to remain in the books. Alarmingly, the club have gone ahead and signed Sergio Aguero, Memphis Depay, Eric Garcia, Emerson Royal. LaLiga have been firm throughout and stuck to the rule that Barcelona’s wage-to-turnover has to be 70% or better, even if it means Messi has to leave and the four new signings remain unregistered.

Is there more behind the scenes?

✨ History made together.

Thank you, Leo Messi. ❤️ pic.twitter.com/c02krCE6iL

— LaLiga English (@LaLigaEN) August 8, 2021

Barcelona’s statement pointed fingers firmly and squarely at LaLiga. Effectively saying, it’s not us, it’s not Messi, it’s those guys. “Despite FC Barcelona and Lionel Messi having reached an agreement and the clear intention of both parties to sign a new contract today, this cannot happen because of financial and structural obstacles (Spanish Liga regulations).”

There are multiple factors at play away from the 1899 Auditorium in Barcelona. It encompasses Real Madrid, Spanish league’s offices and that of every top division club in Spain. Every club has been so significantly affected by COVID-19 that a 12-club committee, which didn’t include Real Madrid and Barcelona, have agreed to sell 10% of their business to private equity fund CVC in a 50-year deal. It means, the clubs have agreed to take quick cash in return for foregoing 10% of their broadcast revenue and commercial deals for the next half a century. The final vote, by all 42 clubs in Primera and Segunda Division, is this week.

Laporta is reported to have agreed to the CVC deal before going back on it. It would have brought in some much needed revenue but it would still not have been enough to keep Messi. “We must accept LaLiga’s operation, we will receive money but it affects the TV operations of future years and we cannot accept it. If we made this operation with LaLiga, we will have some cash income. We would have 50% more of salary limit. But that would not fix the situation,” said Laporta.

If that wasn’t enough football politics, there’s also the ambition held by Real Madrid and Barcelona to unveil the Super League project in the future.

The post-Messi future

So sad watching a clearly very emotional Lionel Messi having to say goodbye to @FCBarcelona. No player in the history of the sport has given so much joy, so many unforgettable moments, so much success to one club.

— Gary Lineker 💙 (@GaryLineker) August 8, 2021

Losing Messi could hurt Barcelona on the pitch but it will definitely affect them financially in the short term. The club would cut down on their wage bill but, per Brand Finance, Barcelona’s brand value is expected to drop by 11% which in absolute terms is a €137 million ($160 million) decline.

For LaLiga and other stakeholders, it is going to be a tough situation. ESPN US, Canada had just signed a massive deal with the Spanish league. With the absence of Cristiano Ronaldo, and now Messi, the league’s viewership is expected to fall which would mean bad news for newest partners in CVC.

On the pitch, Barcelona started with a 3-0 win over Juventus in the Gamper Trophy. But it wasn’t all rosy. Frustrated with the big earners not taking a big enough pay cut or just leaving, the fans took it out on the players. Umtiti, a player the club wants to get rid of on the free, was booed and whistled every time he touched the ball. Frustrated, the Frenchman skipped the trophy celebrations.

As for Messi, the next destination is all but confirmed. Last season, Manchester City were a top destination if Messi did leave. But with the Premier League champions splashing the cash on Jack Grealish, it leaves little room for Messi reuniting with Pep Guardiola. Instead, he will likely be playing with former teammate Neymar at Paris Saint-Germain before long. Admittedly, it’s not quite the romantic sporting story many would have yearned for, but with Messi leaving Barcelona, and in such undesirable circumstances at that, there’s probably no romance left in football.