His previous contract was ridiculous, but it's hardly the only reason the club is in the shape it is in.
160m for Coutinho, 105m for Dembele, 120m for Griezmann - that's half a billion on players who played well below the level of, say, Martial or Rashford. Pretty sure pique, who makes Lindelof look solid, had a bumper contract too.
Gaping hole on the left wing since Neymar left which they never bothered to fill properly, playing CAMs and RWs there. Zero backup for Suarez for years, culminating in that ridiculous Braithwaite move. Awful defence with multiple calamities (Pique, Lenglet, Umtiti). Nobody coming close to filling Alves' shoes, going forward or even defensively. Busquets ageing, and, till last year, alone and overrun in his position. Obviously nothing can replace Xavi and Iniesta, but they didn't have to stoop to Chinese League's Paulinho, past-it Vidal, and never-plays Pjanic. They let Modric and Kroos both go to Madrid, even as both their midfielders had started declining. No moves made for Pogba or Veratti or KdB or Fernandinho or Jorginho. And they let Thiago go too, why not.
Messi, Alba, Ter Stegen, and, in the last season, Pedri were their only consistent performers. 2 of these 4 (and Busquets) are well over 30. Ed Woodward could have sorted that team out given where they started and how much money they had.
At least with the ridiculous money they spent on Messi, they got something back on (and off) the pitch.