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    La Liga Must Register Barcelona’s Gavi, Spanish Court Rules

    As rivals haggled over prices on the final day of the transfer window, Barcelona found a new way around the Spanish league’s financial rules.The frenetic last days of European soccer’s midseason player trading market — that whirlwind of spending and sales known as the January transfer window — are always full of drama. Rumors fly. Deals are made. For most clubs, the final hours, which arrived Tuesday, are spent engaged in last-minute haggling over the prices for new players.At F.C. Barcelona, the Spanish club trapped in a yearslong financial crisis, the close of this year’s window was even stranger than usual: While most of its rivals scoured the market for players, Barcelona went to court to keep hold of one of its own.The crisis was of the club’s own making. Having spent heavily on new talent last summer despite repeated warnings that its spending violated league cost controls, Barcelona was told by the Spanish league that it could not register any new players until it could find savings or new revenues. That did not stop the team from offering a new contract to Gavi, a prodigiously talented teenager who is one of the club’s most valuable assets.The new contract meant a new, higher salary and, crucially, a new registration with the league. The league balked, and refused to register Gavi. And so Barcelona turned to a hometown court, and on Tuesday it got the ruling it sought.In a statement, the club said it had persuaded a local commercial court to require Spanish league officials to register Gavi, an 18-year-old midfielder, before the trading window closed at midnight. The court had agreed with Barcelona’s argument, the club announced, that the league’s failure to register the player would have caused the club “serious, irreparable damage.”The Spanish league, known as La Liga, was not represented in the hearing. It said it would study the ruling before deciding the next steps, but it signaled that its battle with Barcelona over its financial controls was not over.“If the court tells us to register Gavi, we will,” a league spokesman said. “And if there are grounds for appeal, then we will appeal it.” Should there be a successful appeal, the league, the spokesman said, would deregister Gavi.The case of Gavi’s new contract highlights the dire financial straits Barcelona continues to find itself in, even after its president, Joan Laporta, swept back into office in 2021 on a promise to restore the club’s reputation and its finances after a fiscal collapse that had sent F.C. Barcelona spiraling toward bankruptcy.Laporta managed to raise money quickly. Lots of it, in fact, under a program in which Barcelona sold club assets — including years of commercial rights — to outside investors. But instead of using that influx of cash to balance the books, Laporta went on a mammoth shopping spree, bringing in a slew of new players. The acquisitions left the club’s fortunes reliant on sporting success, coupled with the need for even more new revenue sources.The results have been mixed. Barcelona sits atop the Spanish league with half the season remaining, but a humiliating — and financially disastrous — exit from the Champions League in the group stage has raised new doubts about its financial prospects.La Liga’s president, Javier Tebas, this week offered an explanation for why Barcelona could not register Gavi. In the league’s view, he said, the new deal would put Barcelona in violation of financial limits when it went into effect.“The issue of not registering Gavi comes as a consequence of the fact that it is a registration that takes effect next season and has no effect in the coming six months,” Tebas said in comments reported by the Spanish news media this week. He said Barcelona’s budget deficit next season would be more than 200 million euros — more than $217 million — based on current income projections, “so it does not seem appropriate to accept that registration.”With the Spanish league unequivocal in its refusal to bend regulations to allow Barcelona to register any more players, the club’s board took its plea to the local court.In its submission, made on Friday, the club said not being able to sign Gavi to his new contract — which he had agreed to in September — by the close of the January window “would imply the player’s free agency and therefore cause serious, irreparable damage to F.C. Barcelona.”If the ruling stands, La Liga’s decade-old fiscal regulations, which had been drawn up with the clubs’ input in an effort to reduce volatility, would be rendered unenforceable, with teams able to bypass the regulations by challenging them in civil courts. Barcelona has largely been an outlier in failing to stay within the designated spending cap, which is calculated as a percentage of each team’s earnings from its soccer operations.The league in recent months has moved to tighten those rules further by limiting the impact of the type of asset sales Barcelona has employed on teams’ salary and player cost caps. More

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    La Liga Chief Javier Tebas Takes His Feud With PSG President to Court

    A multimillion-dollar dispute between the Spanish league and its Qatari broadcast partner, beIN Media Group, is the latest flare-up in the battle between two of the most powerful men in soccer.For months, it seemed, the feud between the leader of Spain’s top soccer league and the president of the Qatar-owned French team Paris St.-Germain has played out noisily, and in public.Javier Tebas, the outspoken president of La Liga, would regularly criticize Paris St.-Germain and its Qatari leaders, accusing them of flagrantly breaking European soccer’s financial rules. And occasionally, the P.S.G. president, Nasser al-Khelaifi, would respond to Tebas with his own accusations, questioning the health of Spanish soccer, or trade barbs with him in the news media and in speeches.The more high-stakes fight, it turns out, was taking place behind the scenes.This week, after almost two months of wrangling, Tebas and La Liga secured a court order to freeze tens of millions of dollars of the assets of beIN Media Group, the Qatar-owned broadcast network headed by al-Khelaifi, in a dispute over unpaid broadcast-rights payments.BeIN, one of the most prolific spenders on broadcast rights in the world, owns the rights to La Liga matches in swaths of Asia and the Middle East as well as some key European markets. But according to a court document reviewed by The New York Times, the network had so far failed to pay more than 50 million euros it owed the Spanish league for this season’s games.In the 11-page order, the court said it had frozen the assets because of the risk that the funds would be repatriated to Qatar.BeIN Media Group learned about the case, and the order freezing its assets, from a New York Times reporter. “Our reputation is founded on decades of significant investment, best-in-class broadcasting, long-term and trusted relationships with rights-holders, and a track record of payment,” the company said in a statement.The beIN spokesman said 10 million euros of the debt had been repaid on Oct. 5. But the company said it would not discuss its private, contractual discussions with La Liga or any rights-holder, adding, “That is not how business should be conducted, certainly not by professional and dignified institutions.”The outstanding debt represents only a fraction of the money beIN Media Group has paid over the years to La Liga, with industry estimates suggesting the total amount contracted between the league and the network to be as much as $1.5 billion since 2018.Delays in payments to sports organizations are not uncommon, either, with broadcasters often known to negotiate payment plans with their partners. What is uncommon is the lengths La Liga has gone to ensure it receives the money it says it is owed. BeIN continues to broadcast La Liga games across its networks.The case is certain to bring renewed focus on the influence in soccer of Qatar, which in addition to hosting next month’s World Cup also plays a leading role in European soccer through its free-spending ownership of P.S.G., the dominant force in French soccer, and beIN, which has paid out billions of dollars to acquire the broadcast rights to some of soccer’s top competitions.But it also will shine a spotlight on the influence of al-Khelaifi, whose simultaneous roles as the chairman of P.S.G. and beIN Media Group and as a board member of European soccer’s governing body, UEFA, have made him one of the most influential figures in the sport.Al-Khelaifi has for years emphatically denied the accusation that he wields too much power given his various roles; he has said that in the past, he sought legal advice whenever such conflicts have arisen and that he regularly recuses himself from meetings in which his various roles could clash.Qatar’s beIN Media Group is a prolific buyer and broadcaster of European soccer matches.Olya Morvan for The New York TimesTebas told The New York Times that beIN has been delaying payments since last year, and he rejected the network’s claim that it was facing financial challenges, saying, “I don’t believe them.”Instead, Tebas suggested, the broadcaster is attempting to renegotiate its deals with La Liga, which cover territories stretching from France to the Middle East and Asia to New Zealand.But Tebas also suggested there was another motive for the missed payments: He said they were an effort to pressure him to relent in his criticisms of al-Khelaifi. In June, for example, Tebas filed a complaint with UEFA in which he accused P.S.G. and Manchester City, another team backed by a Gulf state, of being in “continuous breach” of the organization’s financial regulations.“He knows exactly what he is doing,” Tebas said of al-Khelaifi. “He’s trying to get to the point where clubs will tell the president of the league we prefer to get the money and have you talk less.”BeIN made its disdain for Tebas clear in its response. “If we ran our operations reacting to certain executive’s comments on others within the sports industry, we wouldn’t be in business,” the company said.Much of Tebas’s fury about P.S.G., and al-Khelaifi, stems from the French club’s ability to lure star players from La Liga, spending that he contends has unfairly altered the game’s economics. In 2017, P.S.G. broke the world transfer record when it paid 222 million euros, at the time more than double the highest amount previously paid for a player, to acquire the Brazilian star Neymar from Barcelona. It also managed to lure Lionel Messi to Paris in 2021 after Barcelona could not afford to renew his contract. And earlier this year, P.S.G. paid the French star Kylian Mbappé a signing-on fee of more than $100 million to reject the overtures of Real Madrid.While other soccer leagues and executives have privately expressed concerns about the spending by state-owned teams, Tebas has been by far the most outspoken. “People in football are cowards,” Tebas said Wednesday, explaining why others have not been as outspoken as he has about the market-altering influence of teams like P.S.G. and Manchester City. “Football executives always want to make sure they have good relations and eat well instead of stepping outside their comfort zone.”Al-Khelaifi has had little use for Tebas’s critiques; in June, he said he would not take lessons from Tebas, suggesting what the Spaniard had to say was not relevant.For UEFA, the running dispute between two of its most prominent voices is proving to be awkward because both Tebas and al-Khelaifi are members of its executive board. The latest court fight will do little to lower the temperature, and it is not over.The ruling freezing beIN’s assets, according to the document, is only a temporary measure; the court will hold a full hearing on the merits of the case, but the timetable is unclear. More

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    Barcelona Wants to Keep Lionel Messi. La Liga May Not Allow It.

    Barcelona’s financial woes and the expiration of its star’s contract have left the club in a bind. And the only solution — about $200 million in salary cuts — won’t be easy.When Lionel Messi stepped off the field late Saturday night after the final of the Copa América, the Argentina captain — one of the most celebrated athletes in history — was, at long last, a champion in his national colors.He was also, only weeks after his 34th birthday, unemployed.Messi’s talent has never been in question. A six-time world player of the year, he is among the best players of his or any generation. His professional future, though, and even his ability to suit up for F.C. Barcelona next season, is suddenly very much in doubt.Messi wants to stay at Barcelona, the only professional home he has ever known, and Barcelona desperately wants to keep him. But the club’s dire financial straits and a series of fateful decisions by team management — including the potentially disastrous one to let Messi’s contract expire at the end of June — have imperiled what is arguably the most successful association between a club and a single player in soccer history.And the vise, in the form of Spanish soccer’s strict financial rules, is tightening by the day.Lionel Messi and his teammates received a hero’s welcome on their return to Argentina after winning the Copa América.Juan Ignacio Roncoroni/EPA, via ShutterstockMessi said nothing about his contract situation over the last month while leading Argentina to victory in the Copa América in Brazil. And Barcelona’s new president, Joan Laporta, has tried to present a confident front. “Everything’s on track,” he told news crews camped outside his offices last week, when he and other Barcelona executives had huddled in search of a solution.But the problem is that Messi’s future may no longer be in the player’s hands, or his club’s. Spanish league rules limit each club’s spending to only a percentage of club revenue, and league officials have said repeatedly that they not will weaken their rules to accommodate Barcelona, which is far over that limit.In short, if Barcelona cannot cut 200 million euros, or about $240 million, from its wage bill this summer — an almost impossibly large sum in a soccer economy cratered by the pandemic — it will not be allowed to register any new players, including Messi, for next season. (Barcelona’s decision to allow Messi’s contract to expire last month means he now must be registered as a new signing, instead of a renewal, which might have been easier.)A rupture between Messi and Barcelona would be seismic for both sides. Messi has been the focal point of Barcelona for nearly two decades, the architect of much of its success on the field and the engine of its financial might away from it.But while Barcelona has collected money at breathtaking speed in recent years — in 2019 it became the first club to surpass $1 billion in annual revenue — it also spent with even more alacrity, living life on the financial edge through impulsive management, rash decisions and imprudent contracts. Messi’s most recent four-year deal alone, if he met every clause and condition, was worth almost $675 million, a sum so large that it had an inflationary affect on the salaries of all of his teammates, fueling a payroll that now eats up about three-fourths of Barcelona’s annual revenue.Now, facing debts of more than 1 billion euros and losses in the hundreds of millions of dollars, Barcelona is struggling to balance its books in a way that adheres to league rules.It is partly because of Messi, of course, that Barcelona finds itself on the brink. Its losses in the past two years have surpassed more than $500 million, much of that because of rich contracts like the one Barcelona’s former administration gave Messi in the fall of 2017.Details of the 30-page deal, which was leaked to a Spanish newspaper, are a testament to Barcelona’s taste for living on the edge: A salary of about $1.4 million a week. A signing bonus of $139 million. A “loyalty” bonus — to a player it has employed since he was 13 — of $93 million.A new contract, yet to be completed, almost certainly will require Messi, one of the world’s most valuable athletes, to accept a substantial pay cut.Victor Font, one of the losing candidates in this year’s presidential election, said he was surprised the team had yet to make the financial arrangements required to keep Messi. But like Laporta, he said he was convinced Messi would remain with the club.“The alternative would be so much of a disappointment that I cannot think there’s an alternative,” Font said in a telephone interview.Messi’s contract with Barcelona expired last month. Signing him to a new one that doesn’t require a significant pay cut will be difficult.Albert Gea/ReutersThe team is not getting any sympathy, or preferential treatment, from the Spanish league. Javier Tebas, the league’s chief executive, told reporters this week that Barcelona only has itself to blame for its financial crisis. Yes, he told reporters, the coronavirus pandemic had battered the team’s finances, but other teams — notably Barcelona’s archrival Real Madrid — have found ways to operate within the league’s rules.The issue, Tebas said, was that Barcelona has no room to maneuver. The league calculates different limits for each team based on each club’s income statements, but caps spending at 70 percent of revenues.“It’s not normal for clubs to spend right up to the last euro of the salary limit,” Tebas said.It is not just Messi’s fate that hangs in the balance, either. Barcelona has already announced the signings of his friend and Argentina teammate Sergio Agüero for next season, as well as those of the Netherlands forward Memphis Depay and the Spanish national team defender Eric García.All three arrived as free agents, meaning Barcelona did not have to pay multimillion-dollar transfer fees to their former clubs, but the league will not register any of them, or Messi, until the club first makes deep cuts to its costs.Barcelona’s new president, Joan Laporta, introduced Sergio Agüero as a Barcelona player in May. But the club is currently not able to register him with the Spanish league.Joan Monfort/Associated PressIn an effort to create some financial wiggle room, the club has been furiously working to offload players, tearing up contracts with fringe talents and negotiating the exits of some of its other stars. But all of its biggest earners remain, and with the transfer market deflated by the lingering effects of the pandemic, it is unlikely to receive significant offers from rivals for players those teams know it needs to sell.Instead, Barcelona may be pushed to sell off key players — the German goalkeeper Marc Andre ter Stegen, the Dutch playmaker Frenkie de Jong and even Pedri, the latest locally reared Barcelona starlet, would most likely bring the highest returns — in order to make ends meet.Font said he expected that Barcelona would prioritize re-signing Messi, even if that meant some of the team’s newest signings, or other key players currently under contract, would have to go.“It’s a matter of trade offs,” Font said. “You may not register other players, but you will not prioritize others over Messi.”But if, as is likely, Barcelona will not be able to make the necessary cuts, it will find itself in another bind. Under the Spanish league regulations, a team can spend only a quarter of the money it receives from player sales on new contracts. That means even if it can clear tens of millions of dollars off the books, it will have only a fraction of that total available to sign Messi — or anyone else.Could the unthinkable — Barcelona’s losing Messi for free — be imminent? Perhaps. But La Liga said as recently as last week that there would be no exceptions, no special rules to keep him in Spain.“Of course we want Messi to stay,” said Tebas, La Liga’s chief executive. “But when you are running a league you cannot base decisions on individual players or clubs.” More