By Aiden Daries
Lionel Messi’s sudden departure from Barcelona has caused shock waves throughout the sporting world as the Argentine leaves Catalonia after a 21 year stay. Messi was due to sign a new contract with Barcelona, but due to “economic and structural obstacles” he could not complete this.
It has been reported that the Argentine had agreed to take a 50% wage cut, but even this would not allow Barcelona to register the player as a result of their wage structure. The Catalan club’s wage to revenue ratio is currently at 115% and the departure of Messi was the only realistic option that could have been undertaken.
In 2013, La Liga introduced what was called the “salary cap”, which is the maximum amount of money a single club is able to spend on player’s salaries, as well as the general club staff.
Back then, Barcelona’s salary cap was around €600 million; however, every season since then it has been decreasing by 5%. Last season, as a result of the pandemic, the salary cap was set at €300 million and dropped even further this coming season to around €138 million.
Last season, Barcelona experienced a deficit of around €400 million, and because of the lowered salary cap set in place for the upcoming season, the Catalan club is not able to register new players until they get under this new salary cap.
Joan Laporta, Barcelona’s president, came out and said that the club’s debt is at €1.35 billion. In his statement, he was quoted as saying, “The club's economic situation is very worrying and its financial situation is dramatic. Too much money was being paid to intermediaries. One person was being paid €8 million to scout players in South America”.
This statement made by the president of Barcelona shows the extent of what a troublesome situation the club is in at the moment.
Messi’s contract ended last season, and therefore he would have to be registered as a new player this season. Fears now are that new signings: Memphis Depay, Sergio Aguero and Eric Garcia cannot be registered and won’t be able to play for the club this season. That, however, is still to be confirmed.
The departure of Lionel Messi sees La Liga lose arguably the best football player of all time, which adds even more trouble for the Spanish league.
Shirt sales will only decline from here with the two most influential players, Ronaldo and Messi, not featuring in the league any longer. It has already been reported that Barcelona’s shirt sales have dropped by almost 80%, whereas Paris St Germain had sold out shirts with Messi’s name on the back in a matter of minutes.
The financial power that the greatest player of all time holds should not be underestimated. Most people watch La Liga to witness the spectacle of a show Lionel Messi puts on, and now that the Argentine is gone, revenue from this sector will certainly decline as well.
Once upon a time, La Liga was filled with the world’s best players as seen in the 2012 World XI which included all 11 players to come out of La Liga. But as the years have gone by, these players have either departed or retired and as a result, the league does not look as appealing as it once was.
Many have asked the question of whether this was the beginning of the Spanish league’s downfall.
Two of the league’s powerhouses, Real Madrid and Barcelona, are in major debt and this has been supplemented even further by the Covid-19 pandemic. After paying exorbitant transfer fees for players that have ultimately not had the impact as anticipated, Barcelona see themselves drowning in debt.
It was because of this reason that they wanted to enter the Super League earlier this year. The Super League meant that the clubs involved would receive a huge amount of money and inevitably help clubs involved clear debt caused by their mismanagement.
The measures undertaken at Barcelona is proof of the magnitude of the messes the clubs involved in the Super League are in, including Barcelona and Real Madrid.
For clubs of this stature to be in such dire situations can only be put down to the owners’ mismanagement of their teams. Barcelona's former president, Josep Bartomeu, has been called the culprit of the club's decline ever since he began at the helm in 2014.
Three different sporting directors in the space of 6 years will not benefit any club, regardless of which club it is. Panic buying, overpaying, and disregarding the culture of the club is what ultimately started the current downhill of this great Catalan club, and possibly the demise of La Liga.