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The days go by and the departure of Lionel messi from Barcelona it is still being analyzed. We talk a lot about what PSG with his arrival, but an investment expert gave a pithy summary of the terrible financial strategy followed by the culé club, also expressing that it should be a case study of the Harvard business review how not to do things.
Michel moritz, a partner of Sequoia Capital, an investment fund with nearly 50 years of experience, said that, “although football fans don’t like to hear it, for a club its players are active and therefore must be treated as such and sold. before its stage of decline. ” The club has forgotten, he says, “that cemeteries are full of indispensable people”.
“Barcelona ended up giving Messi after paying him over € 500m between 2017 and 2021, which in turn generated excessive salary demands from other players on the squad who have today the club drowned in debt, so as not to treat it as an asset, ”he explained.
Although Moritz acknowledges that La Pulga is one of the best footballers of all time, he said the Catalan club should not have clung to the past, but rather thought about the future: “Instead of to get a few more drops of juice from Messi, he should have sold it a few years ago and invested that money in assets, with more future than the past. “
According to the expert, Barcelona have made a “hara-kiri investment”, paying him more and more until he has to let him go, for free. Remember, no investor is forced to “buy” an asset. An alternative, very alien to traditional football culture, would have been to involve Messi in the uncertainty of his future value.
“If Barcelona had paid Messi 50% in cash and 50% in club stakes, both would be better,” says Moritz, who recalls that in 2001 the institution’s annual income was $ 123 million, against more than $ 1 billion before the start of the pandemic.
And when Messi made his debut in 2004, the Catalan institution’s value was around $ 400 million, up from $ 4.8 billion today. Therefore, Moritz concludes, if Messi had received shares or options from Barcelona for around 10%, he would currently have almost $ 500 million, and the club would not be pouring out money to pay off the graveyard of debts he created.
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