Barcelona are handed a £342m WAGE CAP by LaLiga – £77m less than rivals Real Madrid and £245m less than last year – in the Spanish league’s bid to rein in excessive spending with clubs facing financial ruin
- Barcelona have been given a £342million wage cap by LaLiga for this season
- Real Madrid’s salary cap is £419m which is £77m higher than their rivals
- LaLiga president Javier Tebas said cuts were needed to bring down spending
Barcelona’s wage cap has been reduced from £601million to £342m in the wake of the financial pressures caused by the Covid-19 pandemic.
Real Madrid’s has been brought down from £574m to £419m meaning they have £77m more to spend on club wages than their rivals. Atletico Madrid have been reduced to £226m from £344m.
Valencia have also been heavily reduced and have £77m less to work with than last season. The total wage limit for 20 league clubs is £2.9bn which is £546m less than last year.
LaLiga have reduced Barcelona’s wage cap for this season from £601million to £342m
LaLiga president Javier Tebas told Marca the cuts were necessary to bring down the ‘excessive spending’ of Spanish clubs, given supporters are still unable to attend matches.
‘We still have excess spending of about 500 (£448m) million euros,’ he said.
‘Because the clubs cannot take out the players with the contracts. An exercise has been made to reduce the salary masses.
Real Madrid’s cap has also been reduced but they have £77m more to spend than their rivlas
‘The clubs are exceeding 500 million euros. Some have to continue working to reduce the wage bill again. The most affected in Spain are Valencia, Barcelona, Real Madrid.
Barca have already been looking to cut player wages with the finances having taken a huge hit during the coronavirus crisis.
The club are yet to agree on more wage reductions after players agreed to a 70 per cent cut in March.
A statement read: ‘Today, November 11, after several days of intense meetings, and the negotiation was exhausted, the parties have ended the consultation period, without reaching an agreement.’
LaLiga president Javier Tebas said the reductions are necessary to stop excessive spending
Players’ wages consumed around 61 per cent of the club’s £940million revenue before the Covid-19 pandemic, with captain Lionel Messi the current highest earnerat the club as he pockets around £500,000 per week (£26m per year).
The statement detailed that while current negotiations have been ‘exhausted’, both sides have agreed an extension to the deadline, running until November 23.
Barca’s latest figures showed the club had made an £88m loss and had racked up a net debt that had doubled to £440m.