THE POSSIBILTY OF SIGNING MESSI AND THE PROBLEMS WITH THE FINANCIAL FAIR PLAY

Recent news has been published about Lionel Messi and the possibility he can leave the FC Barcelona. On the other side, the Mourinho’s assistant, Steve Holland, has rejected the chance that the London club is able to sign the Argentinian player. His comments were directly pointing the Financial Fair Play rules as a main cause so shat signing could not be made.

Related to these declarations, I would like to shed light around this topic for those people who are not familiarized already with these UEFA Rules which came into force in 2011 and as we can notice, they play a more important role at the football European context.

The UEFA Regulation about the Financial Fair Play just allows a deviation at the break-even point (incomes – expenditures) of 5 million Euros, which does not to be covered. However, in the next season (2015/2016), when apparently Messi could be transferred to another Club, the Rules allow a deviation, in this case it should be covered, of 30 million Euros (not 45 million as the previous seasons). And the balances of the seasons 2013, 2014 and 2015 will be the reference to stablish this amount.

To begin with, we should start from the basis that the Clubs are fighting year by year, summer by summer to get to balance their books and therefore respect this UEFA rule. For instance, a healthy and successful Club as Bayern Munich, which in 2014 earned the amount of 533 million Euros, have had a profit of just 16.6 million Euros.

On the other side, the Sheffield Hallam University’s economist, Rob Wilson, has commented to BBC that at this moment “taking into account the incomes and the reserves, just Real Madrid and Manchester United would be able to sign Messi”. Nevertheless, “they would continue having problems to pay him his salary”. The Messi’s salary nowadays is 20 million Euros. In my opinion, it is complicate that Messi is willing to reduce his wages or the FC Barcelona wants to negotiate a deal to transfer the player. In any case, if FC Barcelona and another Club agree an amount to transfer him lower than the release clause (250 million Euros) and/or a fractioned payment of the amount agreed, even in this scenario, the most powerful Clubs in Europe would see themselves forced to buy several stars to balance their books. Whether Bayern, Manchester City, PSG or Chelsea want to sign the Argentinian Player, they could have financial troubles and maybe with a team without Robben, nor Gotze; Silva, nor Toure; Ibrahimovic, nor Verratti; or Hazard, nor Oscar; respectively.

Let’s suppose that one of those teams finally signs Messi and they incur losses exceeding 30 million Euros. As disciplinary measures, which we have could see applied against Manchester City and PSG, we find, on the one hand, a warning, a reprimand, a fine and points deduction as less harmful measures for the economy of the club. And on the other hand, retention of income earned in UEFA competitions, prohibition of registration of new players in UEFA competitions, as well as the restriction of players, the match disqualification (current or future), including the removal of the title or award; all as the most stringent disciplinary actions.

CONCLUSION

With the Financial Fair Play Rules we have seen how a great number of Clubs (even powerful Clubs) have had to transfer players with the purpose to sign other players, even though the economic power of their owners, with enough money to carry out any kind of signing and moreover if the name of the player is “Leo Messi” (4 Golden Ball’s winner). In this way, we realise why Madrid and PSG did not close the deal for Di Maria, because of the Parisian did not want to sell nobody. And we could see how Juan Mata and Kevin De Bruyne left Chelsea. 

Additionally, the Clubs have to deal with many economic obligations, above all in relation with the salaries of their players and the signings to improve the team. At this moment, my point of view is that if Messi wants to change of scenery, it would be one of the most complex operations in the football’s history and obviously the most expensive.

Another thing is that the FFP Rules could be an antitrust agreement, banning the investment and restricting the Anti-trust laws, and in addition could affect the free movement of capital and workers on the EU perspective. In this respect, the European Commission rejected a claim against the Financial Fair Play Rules.


Sources:

- BBC: “Lionel Messi: Who can afford to sign Barcelona striker?”
- IUSPORT: “El Chelsea descarta el fichaje de Lionel Messi (EFE)”.
- DAILY MAIL: "Bayern Munich’s latest financial results show they are now on a level with Manchester United and Real Madrid”.
- IUSPORT: “El Fair Play Financiero y el Affaire Di María-PSG” (Luis Torres).
- DELOITTE: Report “Football Money League”.


(This article was originally published in Spanish on IUSPRT.com on 10 January 2015).





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