Barcelona have pinned the blame on financial restrictions imposed by La Liga as they confirmed the stunning news that Lionel Messi was leaving the club as a free agent.
The Argentine international has technically not been contracted to the club since his deal expired on 30 June with no agreement in place between the two parties over a renewal.
It had been widely speculated that a verbal agreement was in place between the player and the club to renew his contract at Camp Nou, with an official announcement only a matter of time.
That preceded the bombshell news on Thursday that the 34-year-old would not be continuing at the club, with the Blaugrana claiming ‘economic obstacles’ put in place by La Liga are to blame for the situation.
Barca’s club statement read: "Despite having reached an agreement between FC Barcelona and Leo Messi and with the clear intention of both parties to sign a new contract today, it will not be possible to formalise it due to economic obstacles (Spanish La Liga regulations)."
The Catalan giants have been unable to register any new contracts or player registrations - including Messi and four summer signings - with their league season getting underway in 10 days against Real Sociedad.
The reason for this is that Barca are currently operating above their salary limit - a cap imposed by La Liga, as voted for by its member clubs, that means all clubs must operate within their spending capabilities.
These budgetary limits for each club are based on their earnings, revenue streams, profits and losses, overhead costs, investments and debt repayments.
Audits are carried out on the financial health of every club, with the limits designed to ensure their growth and spending are sustainable and for all outgoings to be justified by income.
As outlined by The Athletic , this year the Blaugrana have a capped limit of £138million (€160m).
To put this in context, the club’s wage cap for the upcoming campaign is less than a quarter of their limit for the 2019/20 season - two years ago - when their £579 million (€671m) outgoing on wages was the highest of any sporting club.
The huge reductions are because Barcelona are in huge financial difficulties.
Earlier this year, Catalan media outlet La Vanguardia claimed the club’s debt was “out of control” and the debt was described as “runaway” and they attested that austerity was now the “inescapable destiny” of the club - they had no other option but to significantly reduce all their outgoings, which would inevitably mean losing top earners in their squad.
To comply with the regulations in place by La Liga, Barca would have to lose in the region of €200million from their current wage bill before the new season begins.
Until the club made such notable savings, they would not be able to register Messi’s new contract with the authorities - leaving him as a free agent - nor with their four summers signings: Sergio Aguero, Eric Garcia, Memphis Depay and Emerson Royal.
Who will Lionel Messi be playing for next season? Comment below
It was claimed earlier this week by Diario Sport that Messi was prepared to sign a five-year contract renewal at Barca but with a 50 percent wage cut, although the number of add-ins and potential of staggered wage increases are not outlined.
However, no new deal would be signed off by the league authorities until the club lowered their wages to accommodate new registrations - so players would have needed to leave the club.
Philippe Coutinho and Ousmane Dembele are two of the club’s highest earners who they would look to move on, but both are currently injured so no moves this summer are feasible.
Samuel Umtiti and Miralem Pjanic - two fringe players who are also among the squad’s highest earners - rejected the club’s offer of a payout to leave as free agents.
There was speculation that Antoine Griezmann would leave the club, but no buyer has been found and to date, the only summer exits have been low earners in the ranks.
Three more of the club’s highest earners - Sergio Busquets, Jordi Alba and Gerard Pique - all appear likely to see out their careers at the club and remain an integral part of the first-team squad, with all on long-term deals having previously accepted wage cuts.
Barca’s huge financial difficulties are the result of continued disastrous decisions at boardroom level that led to astronomical levels of unsustainable spending, with the financial ramifications of the pandemic hastening their disastrous position.
La Liga have not allowed the club to make any exemption in their registration of Messi or any new signings, as they perceive this would be unfair to its other 41 member clubs who have to stick by the rules.
The salary caps are imposed by La Liga but this is a democratic decision which has been voted on by its member clubs to ensure sustainable growth and that clubs cannot spend money they do not have.
Barca’s statement on Thursday was a direct attack on the league’s lack of flexibility on the matter and blaming their stance for the stunning departure of Messi.
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