

It's the only way to explain why Barcelona, which is reportedly more than $1 billion in debt, would refuse that kind of investment, which would have been on par with the projected cash advance of the proposed Super League.

Observers say that accepting the money would have amounted to the two giants financially attaching themselves to La Liga over the decades to come and thus permanently forgoing their Super League ambitions. The four dissenting clubs will not be part of the "LaLiga Impulso". Projections based on La Liga’s revenue-sharing formulas had Barcelona benefiting from a cash infusion of over $300 million of the private equity money, of which 15 percent would be used for player signings.īut interestingly, both FC Barcelona and Real Madrid, two of the most heavily indebted La Liga clubs and both founding members of the failed breakaway European Super League, expressed their opposition to the private equity deal with CVC Capital Partners, which is set to receive 10 percent of La Liga's media revenues in exchange. The plan was nonetheless approved by La Liga’s 42 clubs in a 38-4 vote (Oviedo and Athletic Club joined Real Madrid and Barcelona in voting against). The announcement of a massive private equity investment into La Liga and its clubs only the day before was interpreted by many as helping Barcelona make the financial headway it needed to virtually guarantee the Messi deal. So technically, it's not La Liga's fault, but FC Barcelona's failure to comply with La Liga regulations. 5, the club and player came to the realization that the signing could not happen under the circumstances. But the limited transfer activity across Europe meant that the Blaugrana were nowhere close to that figure, and on Aug. In order to meet that requirement after a drastic reduction in revenues due to the impact of the COVID-19 pandemic, FC Barcelona entered this summer offseason needing to shed well over $200 million in salaries just to sign Messi. Under La Liga rules that were introduced in 2013, there is a floating salary cap for all teams which limits player wages and acquisition costs to 70 percent of club revenues.

LATEST NEWS | Leo #Messi will not continue with FC Barcelona
