Previously, Xavi and Barcelona had reached an agreement to continue their collaboration, but due to Xavi comments regarding Barcelona financial condition in a press conference, Laporta was angry and immediately ended their newly agreed collaboration. Xavi loves Barcelona very much, he is also a legend there, but when it comes to work relationships, there are lines that cannot be crossed.
If I'm not mistaken when the middle of the previous season Xavi had said he would leave even though it was held back by Laporta and the peak was indeed an internal problem where Laporta and Xavi heated up again which required Xavi to leave even though it was as you said this was led by Xavi's statement which said that Barcelona would have difficulty competing with Madrid next season in the race for the trophy because of some of the problems faced and Laporta did not accept that so that made him take action by looking for a new coach and Hansi Flick was chosen as the new coach.
The trigger for the change were the statements made by the coach in which he stated that the Blaugrana wouldn't be able to compete next year with Real Madrid or other big European teams.
The president felt betrayed by the coach because a few days before, the coach had told him the opposite, that he had confidence in the squad and that they could compete for all the titles.
However, there are many more things that have caused the coach's departure. It should not be forgotten that when he said in January that he was ready to leave at the end of this season, Laporta said that if it had been another coach instead of a legend like Xavi he would have fired him.
But in this case I think Xavi's statement is quite a good goal where even though it sounds harsh for Barcelona but indeed they also have to realize that in the end if the internal problems they have, especially for financial problems, then indeed what Xavi said can come true because let alone to compete with other big clubs like Madrid in competition, their performance could deteriorate over time because of the problems they are currently facing so I think Xavi's statement is not wrong but indeed this is misinterpreted by Laporta.
Now they're in Flick's hands and we'll see if Xavi's statement is really just a load of rubbish or if in fact it is.