Manchester City are working on a potential deal to bring midfielder Ilkay Gundogan back to the club.
The 33-year-old departed City for Barcelona in 2023 on a free transfer after his contract expired, having captained Pep Guardiola’s team to a historic Treble.
However, Barcelona’s widely known financial difficulties have hindered their ability to register new signing Dani Olmo, and offloading one of their higher earners could help alleviate this situation.
City are currently facing early-season challenges, including the £81m transfer of Argentina forward Julian Alvarez to Atlético Madrid and an injury to Norwegian winger Oscar Bobb, which may sideline him for four months.
Gundogan could offer a short-term solution to these issues, with the added advantage of not requiring a settling-in period.
Manager Pep Guardiola had not wanted Gundogan to leave City last year, but the club was unwilling to offer the German midfielder the contract length he desired.
Since joining City from Borussia Dortmund for a reported £20m in 2016, Gundogan made 304 appearances for the club, scoring 60 goals.
Over his seven years at the Etihad Stadium, he won 14 trophies, including five Premier League titles, one Champions League, two FA Cups, four Carabao Cups, and two Community Shields.
Why are Barca having trouble registering players?
In 2013, La Liga clubs agreed to implement specific financial regulations aimed at ensuring the competition’s long-term sustainability.
These rules mean that every club has a cap on player expenditures, effectively prohibiting them from spending more on their squad than they generate in a season.
This cap, known as the “squad cost limit,” is determined by subtracting a club’s projected non-sporting expenses—such as salaries, agent fees, and outstanding payments to other clubs—from their expected revenues for the season.
Clubs must submit their financial data to La Liga, which then reviews the information to ensure that revenues are calculated based on market values, excluding artificially inflated sponsorship deals, for instance.
If a club’s squad cost limit is lower than its total wage bill, it may be unable to register all its players to compete in La Liga.
Barcelona is reportedly facing this issue with new signing Dani Olmo, as they currently lack the financial capacity within their spending limit, making it necessary to sell players to create room for his registration.