Lionel Messi, Barcelona agree on new wage-reduced deal

Lionel Messi and FC Barcelona have agreed to a new deal with a significant wage reduction, ESPN reported on Tuesday morning. According to the report, Messi's new contract will be for five years. 

Team president Joan Laporta, who returned to the team back in March, had made attempts to sign Messi to a deal earlier, but Barca's financial upheaval has made that difficult. Barca is reportedly over €1 billion in debt and had its spending reduced significantly in light of the pandemic last year.

The team still has to make cutbacks and move players around, ESPN explained, and signing Messi to a smaller contract is part of that process.

The 34-year-old forward became a free agent at the beginning of the month and had hinted at ending his 20-something year run with Barca since last year. Tensions between the footballer and former team president Josep Maria Bartomeu had an impact on Messi's desire to leave. The return of Laporta -- with who Messi has always had a good rapport -- encouraged him to change his mind.

Messi's previous contract was worth over €500 million ($594M) over four years.