Lionel Messi and Barcelona have struck an agreement for the striker to sign a new five-year contract with the Catalan club. According to sources, Messi has agreed to a hefty wage cut in order to extend his stay.
Messi was a free agent when his Barca contract expired, and he has sparked interest from PSG and Manchester City since announcing his wish to end his 20-year affiliation with the club last summer. The 34-year-previous old’s contract, valued over €500 million ($594 million) over four years, expired on June 30 at 12 a.m.
Messi became more inclined to staying at Camp Nou after Joan Laporta was re-elected president in March. In the next days, an official announcement is planned.
Laporta had intended to reach an agreement with Messi before his last contract expired. With a gross debt of almost €1 billion, Barca’s financial woes rendered that impossible. Transferring players out, decreasing the pay cost, and convincing Messi to accept a reduced compensation have all necessitated budget cuts.
La Liga president Javier Tebas has warned Barcelona that if they do not lower spending to comply with the league’s Financial Fair Play rules, they would not be permitted to register Messi’s new contract. Since the coronavirus epidemic, Barca’s spending ceiling has been slashed from almost €600 million to €347 million, with further cuts predicted for the coming season.
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