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La Liga: Barcelona salary limit drops from €648m to €270m as Real Madrid’s limit is €727m

2 years ago
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La Liga: Barcelona salary limit drops from €648m to €270m as Real Madrid’s limit is €727m

Barcelona are set to be subject to La Liga’s spending restrictions as they face another season well over their salary limit.

The Blaugrana had a salary limit of €648.8m with which to pay their players within La Liga regulations last season, following the sale of numerous assets to the tune of €667m the previous year.

They were spending around €566m, but now they will be well over their limit again, as has happened in previous seasons. According to Relevo, their new salary limit is set to be just €270m without the asset sales.

Barcleona had been optimistic about their work, slashing their wage bill by €162m during that period, seeing the likes of Gerard Pique, Jordi Alba and Sergio Busquets leave. Their new wage bill is around €404m, meaning they will be €134m over their current figure – 49% in excees.

This means that Barcelona will only be able to spend 50% of the money they save in wages they remove from their wage bill, in addition to 50% of the extra they make from sales, until they are back in the black.

The La Liga salary limits are essentially based off income and expenses, allowing clubs to spend 70% of their turnover, taking into account their closing balances from the previous season, in order to ensure clubs are sustainable.

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If clubs exceed their salary limit, they then have restrictions placed on how much money they can spend on players and still register them. Clubs can generally spend 50% of the money they save in wages combined with what they earn in transfer fees.

Real Madrid are well ahead of any other side in La Liga, with €720m. This is an increase of €37m. Meanwhile Atletico Madrid surpassed Barcelona as the side with the second largest salary limit, with €296m, a decrease of €45m. Barcelona’s salary limit has decreased by a remarkable €379m.

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