Barcelona debt problem preventing Messi contract renewal

Forum 2 years ago

Barcelona debt problem preventing Messi contract renewal

Barcelona's debt problem is preventing the renewal of Lionel Messi's contract.

Expansion quotes the financial adviser Ramón Álvarez de Mon, who shared his insight into the hurdles facing Barça as they try and push Messi's new deal through.

"Barça must generate €400 million in capital gains and savings on salaries," the expert explained.

The cited media assured that La Liga could oppose any contract offered by Barça that is for two years as a player but paid over five (as if he was an ambassador), given it would be a way around the league's financial controls and fair play.

Meanwhile, the tax office could also have something to say.

"If Messi is paid for two years as a player and from the third year as an ambassador in Miami, he would be earning for what he generated as a player at Barça, but he wouldn't be a resident, so he wouldn't be paying tax in Spain or he would be paying less than residents, which could lead to a fraud case," added Álvarez de Mon.

He continued: "The club and Messi have previous in this sense (with Messi's last tax case) and in the case of a potential sentence, he could end up in prison and the club in dissolution, which is the punishment for companies in this case."

In addition, Expansion also point out that clubs that exceed their salary limit can only 'sign' for 25 percent of the amount saved. That's to say, if Barça sell a player for 40 million euros, they can only spend 10 million.