Financial Mismanagement: Final nail in the coffin

Financially, it was all but glory for FC Barcelona, a club that has enjoyed the riches of all kinds. By
handing out new contracts with audacious wages to undeserving players, the club flipped the timer on
its head. Sid Lowe, a famous sports journalist from ESPN that even after transferring Neymar Jr to
Paris-Saints German, Barcelona had $222 Million with which, even if they couldn’t have done
nothing, they still had the best line-up of players, feared across the globe. However, with colossal
mismanagement on the cards, it was all about to go haywire.

Signing of new players was not an issue, but awarding them with audaciously high wages and
contractual bonuses was a rookie move played by the club’s former management that made things
southern than they were,

An audit reveals in the month of August 2021 showcased that the club was under a debt of more than
$590 Million and only 10-15% of this was due to the COVID’19 pandemic, rest was because of the
financial mismanagement undertaken by the club under Former President, Josep Maria Bartomeu.

The Leo Messi Fiasco

As of 1st July 2021, Lionel Messi despite having an agreement with the club was a free agent. This
means that they have to re-sign him on contractual terms to reinstate his tenure with the club. This
means his ‘re-arrival’ was meant to be a fresh transfer in the club.

As per the LaLiga Regulations of 2020/21, the wage limit to be set for the Spanish Clubs was to be
70% of the total revenue that club accrued. However, FC Barcelona was breaching this limit by a
whopping 35%, with their revenue ratio being 115%. Even after the star player offered a 50% cut in
his salary, which according to the Spanish Employment law, was the most legal way Lionel Messi
could have allowed Barcelona continuing with his contract, the revenue ratio stood at 95%, still 25%
more than accepted by the league’s confederation.

Did LaLiga tried to save its ‘GOAT’?

The answer to this is a striking yes and a resounding no. LaLiga reached CVC Capital Ventures to
pump 2.7 billion Euros in exchange for 10% of the league rights. Completion of this deal meant that
the club could sign Messi and register the new signings without any hassle. However, the board went
against this contention due to a possibility of a Super League that they were prospecting to host in the
coming period. Hence, a ‘single player’ of LaLiga couldn’t outweigh the possibility of a league that
still has future implications.
An untimed execution of a half-thought plan with terrible economic variants involved, made an
arguable best of the game helpless. Helpless enough to leave the club that gave him all, the only club
he knew. Barcelona’s number 10 was hence entangled in the series of ethical war where emerging
winner was stringent regulatory framework coupled with monetary and emotional fiasco of probably
the worst sorts.