Barcelona have announced that Lionel Messi will not return to the club as financial problems prevented him from agreeing with the forward on a new contract.
Messi, 34, has been a free agent since his previous terms expired on June 30, but ESPN revealed in July that an agreement had been reached on a five-year extension.
However, Barca have been unable to register Messi's new contract with LaLiga, following the league's financial fair play rules. President Joan Laporta will address the situation at a news conference on Friday morning.
Barcelona said in a statement: "Despite an agreement reached with Messi and both sides clearly wanting to sign a new contract, it has not been finalized due to financial and structural problems [rules relating to the Spanish league] can go.
“Given this situation, Messi will not continue his relationship with Barcelona. Both sides express their deepest condolences that the wishes of the player and the club cannot be met.
"Barca would like to sincerely thank the player for his contribution to the development of the institution and wish him the best in his personal and professional life."
Paris Saint-Germain sources have told ESPN's Julian Laurens they are confident the club will still be able to confirm a deal for Messi if he does not sign a new deal with Barcelona - but they Suspecting this to happen, believe the latest move to bluff with the intention of keeping him at Camp Nou. Sources have said that Messi's camp has contacted PSG chairman Nasser Al-Khelai and sporting director Leonardo after Barca's announcement on Thursday.
PSG representatives have worked for weeks to negotiate a move for Messi, with Neymar and Kylian Mbappe also staying in Paris, but sources have told ESPN that at first the club never thought it was a deal that would be worth it. Realistically maybe, Messi is expected to stay with him forever in Barcelona.
It is unclear whether Manchester City, meanwhile, will enter the bid. The Premier League champions wanted Messi last summer but signed Jack Grealish for £100million on Thursday and sources close to the club had conflicting comments when contacted by ESPN. Some rejected it outright; Others left it up in the air.
Spanish clubs must adhere to a spending limit, which includes salaries set by LaLiga and money spent on signings.
Barca's expenses were more than €600 million before the coronavirus pandemic, but that was cut to €347m last season and are expected to drop even further for the upcoming campaign.
Therefore, in order to register Messi's new contract with the league, the Catalan club needed to reduce their salary bill or bring in a significant amount in transfers.
However, the club has failed to move on to big earners such as Miralem Pjanic, Philippe Coutinho and Samuel Umtiti and has so far failed to reach an agreement with some of the club's long-serving players over pay cuts.
Negotiations are going on with Gerard Pique, Sergio Busquets, Jordi Alba and Sergi Roberto over salary adjustments.
Gracias, Leo pic.twitter.com/zQDFiDUK47
— FC Barcelona (@FCBarcelona_es) August 5, 2021
Messi tried to leave Barcelona last summer after differences with President Josep Maria Bartomeu, but ended up staying against his will. He believed a clause in his contract allowed him to go free, but Barca said that was not the case. With the prospect of a legal battle on the horizon, Messi backed down.
The election of Laporta as Bartomeu's successor in March completely changed the situation. Messi and his family are close to Laporta, who was president when Messi joined the club's first team.
Laporta has always said that he was "convinced" to reach an agreement for Messi to remain at the club and that the key was creating a sporting project that would guarantee him success on the pitch.
However, sources have told ESPN that Messi has been left unconvinced by the work he did in the transfer market this summer, with another saying there was disagreement over the breakdown of commission payments included in the proposed new contract.
Messi's departure is a historic moment for the club. He first joined Barca's academy in 2000 and played 778 games for the club, breaking Xavi Hernández's attendance record the previous season.
He has scored 672 goals, another club record, and has helped Barca win among other trophies on four occasions, 10 LaLiga titles and the Champions League.
In the process, Messi has won the Ballon d'Or on six occasions and is regarded as one of the greatest players to have played the game.