World Soccer - UK (2021-10)

SPECIALREPORT

witheye-wateringcostsbeing

maintainedtemporarily by significant

revenuestreams.Whenthepandemic

struck,stadiumsshut,tourswerehalted,

clubmuseumsclosedandtheincome

plummeted– leavingsky-highcosts

andspirallingdebts.

Timingiseverything.AsBarcelona

confirmedMessi’s exit– leavingthe

footballworldreelingandattempting

todigestthenews– theirClasico

rivalsRealMadridreleaseda near-

simultaneousstatementof theirown,

whichalsoattackedthe league.

Earlier in theweek,La Liga announced

thattheyhadstrucka landmarkdeal

withprivate equityfirmCVC,which

wouldinject€2.7bnintotheleague

inexchangefor tenpercentofits

audio-visualrevenueanda tenper

centstakeinmostofits businessin

a long-termagreement,with 90 per

centoftheinjectiongoingtoclubs.

transferwindowfornew player

registrations in La Liga,any new

signingsornew dealswouldhavetobe

processedbyLaLiga thissummerand,

ifany clubwereoperatingabovetheir

limit,thosecontracts wouldnotbe

sanctioned.Messimayhaveofferedto

cuthiswageby 50 percentto stay at

theNouCamp,buttheleague would

haverejectedanyproposalifthe club

couldnotstreamlinetheiroutgoings.

Barca – whosoldhighearnersLuis

Suarez,ArturoVidalandIvanRakiticthe

previoussummertoslashoutgoings–

wereoperatingapproximately€200m

overtheirbudgetevenwithoutMessi

ontheirbooks.Had Messistayed,

Barcelona’sannualsalarywouldhave

accountedfor 1 10 percentof their

incomeandwithouthimitstoodat

95 per cent.They hadtoget that

figure down to around 70 per

centtocomplywith therules.

Critics suggest thatLaLiga’s

budgetary restrictionsareunnecessarily

strictandfailedtoadapttoaccountfor

theshort-term financialramifications

causedbyCOVID-19whenclubrevenue

streams– particularlythoseofBarca

andRealMadrid– nosedived.

TheBlaugrana, in particular,

operateda high-riskbusinessmodel

Underpressure...

Barca president

JoanLaporta

Messistay...Barcafans

protestoutsideLeo’s

finalpress conference