The 34-year-old was due to sign a new five-year contract with the Catalan club, which would have seen his income cut by half.
Lionel Messi is expected to quit FC Barcelona after the club stated that a new contract “cannot happen” due to LaLiga’s financial fair play standards.
The six-time Ballon d’Or winner has been a free agent since July 1 after failing to reach an agreement on a contract extension before his previous Barcelona deal expired on June 30.
The 34-year-old, on the other hand, was anticipated to sign a new five-year contract with the Catalan club.
With the COVID-19 pandemic drastically limiting the club’s budget for 2021-22, the club had been striving to cut its pay cost in compliance with LaLiga’s financial fair play guidelines for the coming season.
“Although FC Barcelona and Lionel Messi having achieved an agreement and both sides’ clear intention to sign a new contract today, this cannot happen due to financial and structural hurdles,” FC Barcelona announced (Spanish Liga regulations).