Why Messi Left Barcelona

In August 2021, Lionel Messi left Barcelona and joined Paris Saint-Germain on a free transfer, despite both sides wanting him to stay and Messi agreeing to a 50% pay cut.

Messi's contract expired on 30 June 2021, so any new contract counted as a new signing and had to be registered with La Liga. La Liga only registers new signings if a club is within its squad cost limit, which is based on the club's income. Barcelona's debts had reached around €1.35 billion, it had lost almost €500 million the previous season and La Liga had cut its limit sharply. La Liga president Javier Tebas warned that the rules would not change for Messi. Club president Joan Laporta said keeping Messi would have taken the wage bill to 110% of income, and Spanish employment law prevented a pay cut of more than 50%.

La Liga offered a way out through its deal with private equity firm CVC, worth €2.7 billion in return for 10% of the league's commercial business, including TV rights, for 50 years. Laporta refused, saying he could not tie up the club's future for 50 years, and Real Madrid and Athletic Bilbao also rejected it. Barcelona announced Messi's departure on 5 August and he signed for PSG five days later.

An agreed contract is only as good as the approval behind it. Like a regulatory condition in an M&A deal, La Liga's registration requirement meant the agreement between Messi and Barcelona could never be completed.