Lionel Messi’s Obscene Contract

Gehrman

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He still tried for force himself out of the club at the end of last season. They could could just have let him go. Would have been the ideal time to let go if they didnt think he justified his wages.
 

Zehner

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But you don't know exactly what you're gonna get when you're negotiating with these players, Coutinho is the best example of that. There is no reason for Barcelona, seen by many as a pinnacle in world club football, to pay such salaries for fdj a twenty one year old kid or something like that. And of course Messi is a problem. Not only his wages but his influences in the twilight of his career over there. There is a build up required and a new team can't be built around Messi. There also needs to be available some money to do this.
No offense but this posts suggests that you don't really understand the economics behind the contract. The numbers which went around these past few weeks make it quite clear that Messi is Barca's financial life insurance. If they had lost him in the summer, they'd probably struggle even more since most of their sponsor's contracts have Messi clauses that see their payments drop by up to 50% percent if he doesn't play or leaves the club. Compared to a transfer like Coutinho, his contract is also much better for Barca's cash flow due to how the payments are scheduled.

So there's the financial perspective (having Messi in the team actually makes the rebuild easier) and there's the sporting perspective (time to move on and rebuild without Messi). Thing is, Barca has no money although they currently employ one of the two best cash cows in the game. They need to bring in new faces and ring in the post Messi era but they also need him to finance that rebuild, especially in their current situation. Saving his wages and losing him on a free most likely won't be enough for that since he's generating more than he costs.
 

Cloud7

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I'm always on the side of players when it comes to contracts. By all means, get the most money you can in your limited time playing because tomorrow could be a career-ending injury. If Barcelona were willing to pay that amount, it's not a senseless decision, it's calculated and guided by a concept of return on investment, which Messi easily generates for the club. The problem is when you have a once-in-a-generation (hopefully) pandemic that completely destroys the economy that the club depends on for the math to make sense.

There's nothing selfish about what Messi did, or any player out there trying to get the max amount of money they can get; it's just business and some fans are naive if they don't think clubs try everything they can to screw the players from maximizing their value/income.
Agree with all of this, especially the bolded parts.
 

Champagne Football

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His contract is based on how much revenue he brings into the club. And no player brings in more vast fortunes of profit than Messi.
The focus is on his obscene contract now, but Cristiano earns a similar salary at Juventus yet nobody seems to complain.

I think Messi feels let down that a world class coach like Pep or Klopp wasn't installed for many years, despite the huge profits of the club before the pandemic hit.
 

kopviolator

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No offense but this posts suggests that you don't really understand the economics behind the contract. The numbers which went around these past few weeks make it quite clear that Messi is Barca's financial life insurance. If they had lost him in the summer, they'd probably struggle even more since most of their sponsor's contracts have Messi clauses that see their payments drop by up to 50% percent if he doesn't play or leaves the club. Compared to a transfer like Coutinho, his contract is also much better for Barca's cash flow due to how the payments are scheduled.

So there's the financial perspective (having Messi in the team actually makes the rebuild easier) and there's the sporting perspective (time to move on and rebuild without Messi). Thing is, Barca has no money although they currently employ one of the two best cash cows in the game. They need to bring in new faces and ring in the post Messi era but they also need him to finance that rebuild, especially in their current situation. Saving his wages and losing him on a free most likely won't be enough for that since he's generating more than he costs.
None taken haha. Yes, I have not seen Barca's sponsorship deals or the relevant stipulations. I guess it makes sense from the sponsor's point of view but I wonder if Barca would need to make such sensitive deals for the club. I also wonder if the reports you refer to are believable. But if so, then it obviously makes the club vulnerable to structure their operations, and financial security to one player, after all it's inevitable this relationship comes to a stop sooner or later. So where will that leave the club then? Will sponsors income drop by 50% in the summer if Messi goes? How is this economical in the long run?

You start off by explaining how the Messi model is invaluable to the club economics (although it's clearly temporary) and then you move into an argument that this model leaves Barca with no money and need for recruitment. How? And how do you convince Messi to spend the twilight of his career in a build-up, which btw would probably be dented when he finally does leaves? Anyway, my view is that Barca operating scheme and deals are precarious, and I the Messi relationship plays a big part in that.
 

Zehner

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None taken haha. Yes, I have not seen Barca's sponsorship deals or the relevant stipulations. I guess it makes sense from the sponsor's point of view but I wonder if Barca would need to make such sensitive deals for the club. I also wonder if the reports you refer to are believable. But if so, then it obviously makes the club vulnerable to structure their operations, and financial security to one player, after all it's inevitable this relationship comes to a stop sooner or later. So where will that leave the club then? Will sponsors income drop by 50% in the summer if Messi goes? How is this economical in the long run?

You start off by explaining how the Messi model is invaluable to the club economics (although it's clearly temporary) and then you move into an argument that this model leaves Barca with no money and need for recruitment. How? And how do you convince Messi to spend the twilight of his career in a build-up, which btw would probably be dented when he finally does leaves? Anyway, my view is that Barca operating scheme and deals are precarious, and I the Messi relationship plays a big part in that.

I gave my opinion on the economic points in an earlier post in this thread:

I believe you're making some very valid arguments. Especially the part with the numbers suggesting Barca's revenue would drop to Tottenham levels got me reconsidering. However, I still think there are some dynamics you're missing.

According to the Deloitte Football Money League, Barca generated 690m € in 2019 (#2 behind Real Madrid (750m) and ahead of United (666m). If Messi accounted for 30% of that revenue, this would mean he generated 207m €. The leak suggests Messi earns max. 555m € over the course of 5 years. Assuming he gets paid the full sum, this would mean roughly 111m € per year.
Now, if you'd subtract those 207m from the overall revenue of 690m, you'd be at 483m €. This would mean Barca would drop to #8, between Arsenal (439) and Chelsea (506).

This seems very harsh. Even without Messi, Barca should comfortably outperform those clubs. However, what you're not considering is the annual budget of 111m € reserved for Messi's wages. Basically, you assume they'd spent those 111m € on something else but get nothing in return. Just by considering a terrible return on investment of 100% (revenues equal costs), it would elevate Barca to 594m €, earning them the 4th spot between Bayern (629) and City (568). Assuming that they can invest those 111m € more profitably, they probably even beat Bayern for 3rd - even without him.

This seems very reasonable to me and is more in line with the shirt sales figures you posted above. After all, Barcelona was comfortably behind Real Madrid and Manchester United in pre-Messi days.

So the key are opportunity costs. If Messi generates 207m and costs 111m, he promises an return on investment of 186%. That's gigantic. Barca would have a hard time finding another investment opportunity in which they can dump 111m € and get 207m out of it. Moreover, the conditions in terms of scheduling of payments and returns are very favorable for them. In many scenarios a company invests such sums at the start of a project and hope to generate a profit on their investments over the course of multiple years. Those 111m € on the other hand are largely due on a monthly basis and the returns are flowing in week after week after week. In cash flow context, they don't really have to go into "prepayment". Especially regarding things like the liquidity, this is an immense advantage. If they'd sign a player for 80m and pay him 30m over 3 years, it would strain their liquidity much more.

This means he's an incredible cash cow for them. One they should milk for as long as possible. Considering those numbers it even makes sense that they kept him against his will.

And what's also to consider: Barca's brand grew incredibly during Messi's career. They got to where they are because they capitalized on having one of the best players in history at their club for 15 years. United's growth IMO is much more sustainable because the philosophy "nobody is greater than the club" is ingrained much more deeply. I believe a huge part of Barcelona's international following actually consists of Messi fans. This **** is also somewhat representative of their club philosophy. They always admired individuals and usually had this one star player who outshone everybody else: Cruyff, Maradona, Laudrup, Ronaldo, Rivaldo, Romario, Ronaldinho, Messi.

So IMO, Barca's risk management is definitely worth debating since they didn't really diversify their revenue streams if one player is responsible for so much revenue. However, having a GOAT candidate in your team for 15 years also poses a great opportunity you don't want to miss out on. I think it's questionable if Barca would've made the first spot in the money league if they didn't capitalize on Messi so much. They definitely profited from it immensely. I also think they tried to diversify this "portfolio" by bringing in other stars with great marketing potential like Coutinho and especially Griezmann but it just didn't really work out.

I believe the numbers proof that Barca's incredible revenue figures are extremely inflated by Messi. The organic club brand itself isn't in the same ball park as United and Madrid. Their shirt sales for example are nowhere near. Messi is the only reason Barca achieved the spheres they achieved. I don't think there were any alternatives to building their income on Messi to the degree we're witnessing.
 

Acrobat7

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fdj salary is a lot but absolutely worth it. He’s an amazing player having a career year so far. Not signing coutinho, umtiti and Griezmann is nearly 400 million right there factoring in transfer fees and wages. The available money was wasted. Not on Messi but on others. Every big club outside of Bayern is going to be paying their players a ton of money. Barca just did it to way more players. Messi’s salary is not the issue, as I’ve said countless times, it’s the bad signings that hurt them far more. Players like de Jong are worth it. He’ll be a top 5 midfielder in the world if he isn’t already.
You might want to check Bayern’s payroll. Hint: it is one of the highest.
 

Adisa

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He must go down in history as the best and most selfish player ever. Just to get the salary he wants, he is willing to run his club into bankruptcy
How is Messi to know what Barcelona can and cannot afford? It is up to Barcelona to put their foot down and say they cannot pay.
 

gibers

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Of course this is just an estimate but:

DDG, Pogba, Maguire, Fernandes, Mata, Bruno, Shaw, Rashford, Cavani, Martial, Lindelof, Fred, AWB and Henderson - combined apparently earn about £2.7 million a week

Multiply that by 52 weeks over 4 years and you get about £560 million

I know Messi is better than our players but he has made as as much as roughly our 14 highest earners combined. Just to put it into perspective. He earns more than the entire Liverpool-side combined. He must go down in history as the best and most selfish player ever. Just to get the salary he wants, he is willing to run his club into bankruptcy - and evey worse, he makes so much that the majority of his teammates probably don't even have 5% of his total salary.

Edit: I just notice that the amount was in Euro - so maybe just as much as 11-12 of our players then :)
Why should he not ask for more money if the club are stupid enough to give it to him? They've already done calculations and Messi generates 1/3rd of Barcas income. The problem for Barca is they spent transfer fees and huge wages on Coutinho and Dembele and keep making dumb decisions. Messi is an employee and will always do what is best for him.

Funny you say that when Ronaldo asked Madrid to give him something similar but Florentino wisely showed him the door.

The club is at fault for letting a single player get that much influence.
 

Gehrman

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If Messi was the most selfish player in history he would have run down his contract in his prime and join Real Madrid.
 

cyberman

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Why should he not ask for more money if the club are stupid enough to give it to him? They've already done calculations and Messi generates 1/3rd of Barcas income. The problem for Barca is they spent transfer fees and huge wages on Coutinho and Dembele and keep making dumb decisions. Messi is an employee and will always do what is best for him.

Funny you say that when Ronaldo asked Madrid to give him something similar but Florentino wisely showed him the door.

The club is at fault for letting a single player get that much influence.
Because its running the club into the abyss? At what point does Messi stop taking advatage of them to the point they arent far off financial armageddon?
 

Zehner

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Because its running the club into the abyss? At what point does Messi stop taking advatage of them to the point they arent far off financial armageddon?
No it isn't..
 

Gehrman

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Because its running the club into the abyss? At what point does Messi stop taking advatage of them to the point they arent far off financial armageddon?
He tried force his way out last summer. They insisted on keeping him. Its their failure in the transfer market thats fecked them. Like with us.
 

Mb194dc

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It's simply the kind of contract you give when you only see financial sunlit uplands stretching on to infinity. If you got hold of Barcelona's budget and accounts forecasts, you would probably see they expected revenue growth of 10%+ a year or more essentially forever.

In that context, the contract offered to Messi could make sense at the time they gave it.

Not they're seeing revenue growth of -30% (or whatever, don't have exact numbers), the contract is totally unaffordable.
 

cyberman

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the club can say no. As with all negotiations.

Barca are the ones at ‘fault’ here.
But Messi had them over a barrell. If he said he was leaving the fans would demand the board be sacked, as last summer.
Then the next president would promise to offer Messi a new contract and he would probably stay.
No board could see that out, literally impossible.
 

gibers

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Because its running the club into the abyss? At what point does Messi stop taking advatage of them to the point they arent far off financial armageddon?
Taking advantage? Your talking as if Barcelona are some poor helpless club. Ronaldo tried it with Madrid and was shown the door.

It's wholly on the club for bowing to the whims of one player.
 

Gehrman

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But Messi had them over a barrell. If he said he was leaving the fans would demand the board be sacked, as last summer.
Then the next president would promise to offer Messi a new contract and he would probably stay.
No board could see that out, literally impossible.
Blame the club structure then. Mes que un club and all that.
 
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But Messi had them over a barrell. If he said he was leaving the fans would demand the board be sacked, as last summer.
Then the next president would promise to offer Messi a new contract and he would probably stay.
No board could see that out, literally impossible.
a player is entitled to ask for whatever they want.
Perhaps if Barca hadn’t set the precident of offering a new contract every 2 years throughout his career, perhaps he wouldn’t be paid so much.

have no sympathy for Barca.

perhaps if they were actually “more than just a club” then they wouldn’t have such an issue.

should have let him go last summer.
 

cyberman

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Blame the club structure then. Mes que un club and all that.
Its not really the structures fault, there is no law saying they have to give Messi his contract.
Maybe an American owner cocooned in the States could sell him but Barca couldnt and Messi knew that.
Its ok to say Messi was greedy and took advantage, he is still the greatest player of all time. Those numbers tell the story
 

Gehrman

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Its not really the structures fault, there is no law saying they have to give Messi his contract.
Maybe an American owner cocooned in the States could sell him but Barca couldnt and Messi knew that.
Its ok to say Messi was greedy and took advantage, he is still the greatest player of all time. Those numbers tell the story
Its clear he's on the decline. He tried to force his way out. Can't get feel sorry for Barca insisting on keeping him.
 

Zehner

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I find it remarkable how people just go on with the "Messi is ruining the club financially" narrative although the opposite has been proven.
 

Pep's Suit

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I find it remarkable how people just go on with the "Messi is ruining the club financially" narrative although the opposite has been proven.
Has to do something with 09 and 11 finals, I think. Most of caf seems anti-messi more than anything. :drool:
 

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I find it remarkable how people just go on with the "Messi is ruining the club financially" narrative although the opposite has been proven.
Has to do something with 09 and 11 finals, I think. Most of caf seems anti-messi more than anything. :drool:
The club are awful financially. wasted 130m on Coutinho and 100m on Dembele. I can see that. But ff you knew your partner has a gambling problem, would you raise the Alimony to 25% of their income?
 

Zehner

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The club are awful financially. wasted 130m on Coutinho and 100m on Dembele. I can see that. But ff you knew your partner has a gambling problem, would you raise the Alimony to 25% of their income?
It's ~16%, not 25%, and if I'm responsible for 30% of their income then hell yes I would. Without a second thought and I'd probably even feel generous that I didn't demanded more. Messi probably has an ROI of almost 200% after a month or two. That's insane.
 

cyberman

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It's ~16%, not 25%, and if I'm responsible for 30% of their income then hell yes I would. Without a second thought and I'd probably even feel generous that I didn't demanded more. Messi probably has an ROI of almost 200% after a month or two. That's insane.
Thats not how the real world works. Hes a player, not a partner.
 

Stacks

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It's ~16%, not 25%, and if I'm responsible for 30% of their income then hell yes I would. Without a second thought and I'd probably even feel generous that I didn't demanded more. Messi probably has an ROI of almost 200% after a month or two. That's insane.
How are you calculating these estimates? If its based off trophies and prize money I would discount it as its a team game. Is it shirt sales etc?
 

JSArsenal

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I can't believe that so many people in here feel sorry for or are leaning towards the side of the football club here. We're talking about FC Barcelona, the multi-billion dollar world famous club not Dagenham & Redbridge or your local semi-professional club.
 

Daysleeper

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How are you calculating these estimates? If its based off trophies and prize money I would discount it as its a team game. Is it shirt sales etc?
the athletic did a breakdown on what revenue he brings in to Barca and he is responsible for a third of their revenue
 

Zehner

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Thats not how the real world works. Hes a player, not a partner.
Of course that's how the real world works. If you are responsible for 30% of your employers revenue and offers of competitors are flying in, you obviously will negotiate a high salary or leave.that's supply and demand.

The attitude of many fans towards player salaries doesn't maky any sense. One could think football clubs are non-profit organizations and not companies making hundreds of millions of annual profit. If they'd pay their players only half the salary, those savings would immediately go into the pockets of a business. Is that ethically more correct than paying a player ~50% of the momey he generates for the club?
 

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Sky1981

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This is barca fault not Messi

This whole 'holding the club to ransom' that some people are saying is nonsense

On a lesser scale it's like United being stupid to offer Rooney and DDG top wages after their prime / best and a long term contract as well which makes them hard to shift.

Messi has every right to be pissed that this was leaked especially if he knows only 5 or so people knew about it and they are all linked with barca
Nah. No way. The whole finance department and accounting would know. The bank would know. His agent would know. The clerk in Barcelona back office would know. Tax person would know. Somebody typing those numbers would know.
 

Zehner

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Do you actually have any clue of what you are talking about? Which club has ever made a 100 mill profit, let alone "hundreds of millions"? :houllier:
Come on, it's kind of obvious that I intended to write revenue, not profit. I'm not the first one this has happened to and I guess I won't be the last one. I know the difference, I promise, and I also know that football clubs don't make hundreds of millions of annual profit. I mean, I wrote essays in here adressing how the numbers quoted from the study actually add up and even mentioned how the Messi contract is actually very favorable for Barcelona from a cash flow/liquidity perspective. I'm not an expert on the financial management of football clubs and never claimed to be, I only know some basics, but I don't think it's fair to cherry pick one sentence and ridicule me for it.
 

DoomSlayer

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Come on, it's kind of obvious that I intended to write revenue, not profit. I'm not the first one this has happened to and I guess I won't be the last one. I know the difference, I promise, and I also know that football clubs don't make hundreds of millions of annual profit. I mean, I wrote essays in here adressing how the numbers quoted from the study actually add up and even mentioned how the Messi contract is actually very favorable for Barcelona from a cash flow/liquidity perspective. I'm not an expert on the financial management of football clubs and never claimed to be, I only know some basics, but I don't think it's fair to cherry pick one sentence and ridicule me for it.
Most clubs barely run their clubs on profit, so your whole point was ridiculous, whether you meant revenue or profit. If clubs go by your suggestions, they'd not be able to even break even at the end of a fiscal year.
 

Zehner

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Most clubs barely run their clubs on profit, so your whole point was ridiculous, whether you meant revenue or profit. If clubs go by your suggestions, they'd not be able to even break even at the end of a fiscal year.
How can my point be ridiculous from an accounting perspective when it was an ethical point to begin with? In the post you quoted, we were debating whether or not it was ethical that an employee earns ~17% of his employer's revenue. I'm getting the feeling you didn't really read the thread before you made your post.