Messi and Barcelona: What really went wrong?

Lionel Messi leaving The Spanish giant, Barcelona has become a big blow to the club; widely regarded as the best player of his generation, Lionel Messi couldn’t make FC Barcelona’s balance sheet a winner. Here’s a look at what went wrong with the finances of the giant’s, Barcelona.

According to Bloomberg, the pandemic had an impact of 130 million euros on Barcelona’s business. However, the new management team said the figure was closer to 42 million euros and that the previous board had used the pandemic and its empty stadiums as an excuse for mismanagement.

More so, Barcelona’s biggest problem is the fact that they continue to be in debt. The club’s financial net debt at the end of March, when new management took over, was 673 million euros ($792 million).

The adjusted provisional debt’s now above 1 billion euros, including the payment of players’ salaries deferred during the pandemic. The club is conducting an audit and the final figure could be higher.

Why Messi leave?

You will recall Barcelona announced in a short statement on Thursday that after 17 seasons, Messi’s contract wouldn’t be renewed.

Club president Joan Laporta said Barcelona couldn’t sign the Argentine superstar because of “financial and structural obstacles” within the Spanish league, and despite the the club and Messi wanting to ink a new deal.

According Forbes, Messi estimates 2021 income, including salary and endorsements, is at $130 million, second among all athletes to Ultimate Fighting Championship star Conor McGregor.

Following La Liga rules, clubs have a salary cap to spend on players and coaches based on the difference between income and costs. In the case of Barcelona, with Messi on board even with a proposed salary cut, the wage bill was an unsustainable 110% of its revenues.

“The club is above everything — even above the best player in the world,” Laporta said at a news conference this week.