After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

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After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

“After more than 20 years, I want to watch and admire to the Argentines..!” You helped me get your hope in the club from day one.. on the pitch.”

After that he apologized that he could not extend the speech, as he was crying and sad, and asked to go to the questions. It is the historic football player Lionel Messi, who FC Barcelona announced his departure from the club on August 5, 2021. On August 8, FC Barcelona held a farewell party for its legendary hero Messi, who went up on stage and could not contain himself and cried from excessive sadness and emotion.

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He will go for the club that witnessed all his great sporting achievements. Messi’s story with Barcelona is not normal, and he is not a passing player, in addition to the fact that his departure is not a loss for the club at the sporting level, but the economy of the most famous Spanish club may be destabilized, and worse, this may affect the economy of Spain itself. Our story today is interesting, dealing with dimensions whose impact may extend to far places.

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

The beginning of the story

On June 24, 1987, an Argentine child was born into a family of Italian descent, whose father gave him the name “Lionel”. Lionel’s father was a factory worker, and his mother was a cleaner. The simple family lived a happy life, and the parents noticed their son’s prowess in football, and helped him develop his talent by joining sports clubs until 1999, when the family learned that Lionel had a rare disease “lack of growth hormones”, whose treatment would cost an average of $1,000 per month.

how will Messi's leaving affect the economy of Barcelona and Spain

The family may have come to terms with the fact that their child will suffer from short stature for the rest of his life, but fate seems to have had something wonderful in store for him. He heard about him, “Carlos Rexach”, the director of Barcelona at the time, who gave an opportunity to the child Lionel, noticed his talent, and then asked the family to move from Argentina to Spain, and it was, and over time, Lionel proved his efficiency and became one of the greatest football players in history, bearing the title Messi. .

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

While Messi was growing up and receiving his treatment and training, he achieved tremendous achievements with FC Barcelona, where he won 35 titles, and scored more than 750 goals, which is a record. On the other hand, he made a huge fortune. His successes followed with the team, and he was paid $150 million annually. Here is an important question.

how will Messi's leaving affect the economy of Barcelona and Spain

How do football clubs manage to pay the huge salaries ?

It is well known that footballers get paid a lot, which means that the donor (clubs) get a lot of money. There are a variety of ways clubs make money, including:

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Match tickets.. Supporting football clubs is very expensive

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

During the regular seasons, the English Premier League EPL teams play around 38 matches. Half of these matches are in the club’s stadium. This strategy helps to encourage the fans when entering the club they support, and also motivates the players because they are playing at their home. In addition to the most important element, which is obtaining the cost of entry tickets for the match, which helps in providing material income for the club.

It is noteworthy that the average ticket price was 32 pounds in the 2019-20 season. This is not a large number for other clubs, for example, Hull City FC, its ticket price was about 36 pounds, as for Arsenal, the price of its tickets reached 97 pounds. And in the 2018-2019 season, Arsenal club earned 100 million pounds in a match, knowing that this number includes food and drinks during the match, as the Arsenal stadium accommodates about 60,704 fans.

Renting playgrounds.. Have you ever seen a wedding on a football field?

Most people think that stadiums are used only on match day, in fact, stadiums offer rental opportunities, whether to hold matches between other clubs or for special social events, including weddings. If you are a passionate football fan and would like your wedding to have a footballing theme, you can rent a club’s stadium as a wedding hall!

In addition, some clubs offer opportunities to rent their stadiums for private matches, such as you play with your friends on a friendly basis, but the cost of this fun is relatively large, it can cost you around 1500 pounds. Clubs also welcome concerts of foot traffic, which improves the quality of the surfaces.

Inside sales..from snowballs to T-shirts

Inside the clubs there are indoor shops, selling different products, the most famous of which is the players’ shirts. These sales constitute additional income for the clubs, although they may not be much compared to other sources of income, but they are important and beneficial.

Sponsors.. crazy amounts

how will Messi's leaving affect the economy of Barcelona and Spain

Why did Messi leave Barcelona?
It is known that the football match is sponsored by very big companies, and the amounts mentioned are really crazy. But hey, I’m going to tell you a story that actually happened in the 2019-20 season with Manchester United. It was sponsoring three of the world’s largest brands: Adidas, Chevrolet and Kohler. (If you don’t know how big these companies are, Google ?).

The club reaped a lot of money from each company:

  • £75 million from Adidas.
  • 64 million pounds from Chevrolet.
  • 10 million pounds sterling from Kohler.

Here is an important question, how do companies benefit when paying these amounts? Well, you might have noticed in a match that players’ jerseys have logos of famous brands or that the pitch is surrounded by large flyers that include brand products and logos. Yeah, exactly, that’s what companies benefit from.

In the case of Manchester United, a statistic was conducted in 2019, to find out the number of fans of the club, it turns out that their number is approximately 1.1 billion followers. This means that when matches are broadcast, brands will be watched by 1.1 billion people, and this is one of the most powerful marketing strategies.

Selling T-shirts.. Contracts with international companies

T-shirt sales are one of the club’s main sources of income, but it’s not as influential as some people think. These deals are conducted as follows:

Sponsors such as Adidas pay to put club logos on their shirts, which generates great sales, as we know, the number of football fans around the world is very large, and many young enthusiasts, want to buy shirts for their favorite players. But in this deal, the largest share of the profits is for the sponsoring company, and the clubs receive amounts ranging from 7.5-10% of the profits. But..

These sales are influenced by factors including players. What is the point of wearing a shirt for a player who no longer plays for the club you support? Here is another story. In 2018, Juventus bought the most famous football player “Cristiano Leonardo” for 99.2 million pounds.

Adidas (the club’s sponsor) took advantage of this situation and produced over 500,000 Leonardo shirts within 24 hours after the announcement of Cristiano’s transfer. Sales were amazing, the company made £48 million! But Juventus’ share was relatively small, it ranged between (3.6 – 4.8) million pounds, but it is a good amount anyway. Generally, these deals help to ensure a good source of income, and save them the trouble of transporting goods to the masses.

Players’ transfer…the journey in search of a new challenge

Huge sums are offered when a player transfers from one club to another. Consider the following transfer cases:

  • In 2004, French footballer Zinedine Zidane moved from Juventus to Real Madrid for 47 million pounds.
  • In 2009, Cristiano Leonardo moved from Manchester United to Real Madrid for £80 million.
  • In 2017, Neymar moved from Barcelona to Paris Saint-Germain for 198 million pounds.

Here, a question arises, which is what players benefit from these transfers? In fact, players benefit a lot, moving means facing new challenges, and he may get a percentage of the transfer amount. But the clubs get the biggest share. In 2019, FIFA reported club spending of £5.6 billion. Part of it goes to legal matters and the rest goes to the clubs.

However, some clubs try to keep players for as long as possible by setting a release clause, which other clubs pay if they want the player to move to them, the most famous example of this, Messi, when he was at Barcelona, ​​the club put the 638 million pounds as a release clause. But some clubs put a clause stating that the player is released if the other club offers a specific amount, and the player is free to move or not.

TV broadcast

Television broadcasting is one of the most reliable sources of income for clubs, for example in the case of clubs affiliated with the English Premier League. The league owns the distribution rights, distributes them to the clubs according to the order of views of each club, and usually sells the broadcasting rights to the channels that pay the most, and attracting viewers depends – in general – on the popularity of the team and the level of performance of its players on the field.

Cash prize.. winning matches

The cash prizes that clubs get for winning a competition is one of the most important sources of income. The better the team’s performance, the higher its chance of winning, and thus getting more money. In league competitions, you get paid depending on the position you end up in.

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

So, why did Messi break up with Barcelona?

how will Messi's leaving affect the economy of Barcelona and Spain

On June 30, 2021, Messi’s contract with FC Barcelona expired, and it was scheduled to be renewed, but due to the Corona crisis that swept the world, stadiums and clubs were affected by the lack of matches, so Barcelona’s budget did not allow Messi to be paid his salary. As we know, Messi spent about 21 years in Barcelona, ​​this made him more committed to the team, and he agreed to reduce his salary to 50%, to receive 71 million euros annually.

However, the regulations of the Spanish League did not allow this, in 2013, the Spanish League established a law that the salaries of players should not exceed 70% of the club’s revenues, and due to the Corona pandemic that affected Barcelona’s plans, he could no longer give Messi his salary, although he agreed to Reduce it by 50%. But the club needs to spend upwards of $200 million just to sign Messi. On August 5, the club announced in its statement what had happened, adding:

“As a result of this situation, Messi will not continue in Barcelona, ​​and both parties are deeply sorry, because the wishes of the player and the club will not be fulfilled.”

The club tried to pressure the Spanish League in order to make an exception for Messi’s case and sign a new contract with him, and indeed the Spanish League tried to support Barcelona the day before the announcement by pumping 300 million dollars in favor of Barcelona, ​​​​of which 15% for player contracts, but the club’s financial situation did not allow that, and something happened. else.

Do you remember the story of the European Premier League? Well, to quickly recall it, a group of clubs led by Barcelona and Real Madrid tried to secede from UEFA in April 2021, but failed to do so. The purpose of establishing this league was to obtain more money, facilitate club cases and retain players for as long as possible, especially after two of the global club giants – Barcelona and Real Madrid – fell into the debt trap, as Barcelona’s debt amounted to about 1.4 billion dollars!

Despite their debts, they strongly rejected the deal offered by the investment fund CVC Capital Partners, which was offered to the Spanish League, which amounted to $ 3.2 billion, and it is worth noting that this investment fund manages about $ 115 billion in assets, and is one of One of the largest investment funds in the world.

His deal with the Spanish League was to acquire 10% of the business of the Spanish League, which is represented in audio-visual rights, in exchange for supporting the clubs and paying their debts, thus strengthening the economy of the clubs that wanted to join the European Premier League, led by Real Madrid and Barcelona. For this agreement to take place, one third of the member clubs of the Spanish League must agree. But both giants refused, arguing that this deal would affect audiovisual rights for several decades (almost 50 years).

And here is a question, do Barcelona and Real Madrid oppose this deal because of the loss of audio and visual rights, really? Or are they still burning desire to establish the European Premier League? Real Madrid president Florentino Perez, the mastermind of the Premier League, has confirmed the start of the Premier League at the earliest appropriate time, and he has not given up on the idea. Although Barcelona’s agreement to make this deal would have helped them keep Messi, he refused vehemently, perhaps the club’s determination to establish the Premier League is more important than Messi.

Why did Barcelona make a fuss about Messi’s leave ?

how will Messi's leaving affect the economy of Barcelona and Spain

The club’s management realized that it would not be able to keep its historical player “Messi”, and they wanted to blame the Spanish League, so that the announcement of Messi’s departure was only one week before the new season! The club wanted to absorb the anger of the fans of the club and “Messi” in particular, by directing that anger towards the Spanish League itself, arguing that its rules are very stressful, even causing them to lose their favorite player.

On the other hand, in the summer of 2020, Messi announced his desire to leave the club, as there was a clause in his contract that helped him leave the club, and stated that he had made a verbal agreement with the club’s manager at the time, “Josep Maria Bartomeu” that he had the right to leave, and when he expressed Josep said he didn’t want to let him go, Messi refused to sue the club, and not to bring personal matters into the future of Barcelona he had grown up in, decided to stay there for an extra year.

Some observers have speculated that this complicated La Liga rule was his excuse to leave the club while keeping his fan base the same, but hey, Messi agreed to cut his salary by 50 percent, reinforcing the idea that he really wanted to stay with the club he grew up in. Here is an important question, which is why Messi’s desire to stay in Barcelona changed, and he also agreed to cut his salary in half?

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

A serious desire to stay with the return of the former Barcelona president

how will Messi's leaving affect the economy of Barcelona and Spain

Between 2003 and 2010, Joan Laporta Estroche took over the presidency of FC Barcelona. Excellent European.

Laporta was in agreement with Messi, they both witnessed the emergence of the Barcelona star during the period in which Laporta took over the presidency of the club at the beginning of the twenty-first century, and people believed that Laporta would be able to keep Messi in the club, and of course he tried to do so, but the club is in a financial predicament.

He also stated on August 6, 2021, that he did not want to create a false hope about Messi’s survival, and that due to the lack of wisdom of the previous managers of the club, huge financial losses occurred, during the 2020-2021 season, the club lost 572 million dollars. He confirmed that he tried to keep the legendary player, and Messi was already cooperative, he agreed to cut his salary in half. However, he did not give any hope to the media regarding Messi’s return. The only solution is to agree to the CVC Capital Partners deal, but this offer will take away the TV rights of Barcelona for 50 years, which is not good for the club.

Regarding the refusal to reduce his salary another 30%

During the press conference held to bid farewell to Messi on August 8, he was asked about his refusal to reduce his salary 30% again, and he replied that what was reported by news agencies and news about this information was a lie, and confirmed that the club did not ask him for this request in the first place. He stressed his sadness to leave the club.

Messi’s leave destabilizes the economy of Barcelona and Spain

how will Messi's leaving affect the economy of Barcelona and Spain

Messi is an important symbol of Barcelona, ​​not only the club, but the city itself. Tourism has flourished in the Spanish city thanks to the club’s presence there, and it is believed that the losses will be heavy when Messi goes.

According to Archyde, Barcelona will lose about 30% of its revenue, which is estimated at one billion dollars annually. Messi’s presence helps the club achieve more than $200 million through television rights, match tickets and sponsorship contracts. Messi has a large fan base, there are those who follow Barcelona only to follow Messi. Even T-shirts bearing Messi’s name sell for $24 million, with 8 out of every 9 shirts selling Messi’s name. Experts also expect the club’s share of the league’s broadcasting rights for the 2020-2021 season to decrease by $200 million.

As for Spain as a country, it used to charge Messi annually in taxes estimated at 110 million dollars, which affects its economy. On the other hand, La Liga has made an agreement with ESPN, an American broadcaster, for $175 million annually for 8 years, meaning that La Liga will receive $1.4 billion over the term of the contract. And the absence of Messi may affect the viewership.

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

A new journey with Paris Saint-Germain

how will Messi's leaving affect the economy of Barcelona and Spain

After announcing his departure from Barcelona, ​​​​a few days later, Messi moved to Paris Saint-Germain, for an amount of 34.6 million dollars annually, and obtained the number 30 shirt, as Neymar keeps in the same team the number 10 shirt. Perhaps Messi encourages this club specifically for the presence of his friend Neymar, who participated with him Many tournaments in Barcelona. Messi also stated that Neymar and Pochettino, the team’s coach, had convinced him to join the Paris Saint-Germain team, and confirmed that he seeks to win again and achieve more successes in his sports career.

It is expected that the economy of the French capital, Paris, will rise, due to Messi’s move there. Several days before his joining the Paris Club, the shares of the Vivendi Media Group rose by 0.2%, due to the high expectations of Messi’s transfer to France, and the broadcast of the matches in which he will play through the channels of this media body . Its shares are expected to increase further after the actual transfer of the historic football player.

Finally, Messi’s transfer will really affect the economy, whether at the club or state level, and this is something that happens in the world of football. The sources of income for these clubs are multiple, and Messi is one of the best players in history, until Barcelona set a penalty clause for his departure during his contract with them 638 £1m, an impossible sum for any club wishing to acquire Messi, it was an invaluable treasure, and his exit from the team would cost him heavy losses, but the gains that Messi made for the club for 21 years cannot be overlooked, thanks to him the club obtained huge funding And, in any case, he has the right to get a new opportunity in a new place, and who knows, he might return to Barcelona again and end his career as a football player there, as he stated that he wanted to return to Barcelona again.

After moving to Paris Saint-Germain,how will Messi’s leaving affect the economy of Barcelona and Spain

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