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Barcelona’s salary cap has been lowered from 601 million pounds to 342 million pounds in the wake of financial pressures caused by the Covid-19 pandemic.
Real Madrid fell from 574 million pounds to 419 million pounds, meaning they have 77 million more pounds to spend on club salaries than their rivals. Atlético de Madrid has dropped from 344 million to 226 million pounds.
Valencia is also down considerably and has £ 77 million less to work with than last season. The total salary cap for 20 league clubs is £ 2.9 billion, which is £ 546 million less than last year.
LaLiga president Javier Tebas told Marca that the cuts were necessary to reduce “overspending” by Spanish clubs, given that fans are still unable to attend games.
“We still have an overspending of around € 500 (£ 448 million) million,” he said.
‘Because the clubs cannot take out the players with the contracts. An exercise has been carried out to reduce the wage bill.
‘The clubs are exceeding 500 million euros. Some have to keep working to reduce the wage bill again. The most affected in Spain are Valencia, Barcelona, Real Madrid.
Barça has already been looking to cut player salaries, as finances were hit hard during the coronavirus crisis.
The club has yet to agree to further pay cuts after players agreed to a 70 percent cut in March.
A statement said: “Today, November 11, after several days of intense meetings, and the negotiation is exhausted, the parties have ended the consultation period, without reaching an agreement.”
Player salaries consumed around 61 per cent of the club’s £ 940 million revenue prior to the Covid-19 pandemic, and captain Lionel Messi is the highest currently earning at the club, pocketing around £ 500,000 per week (£ 26 million per year).
The statement detailed that although current negotiations have been “exhausted,” both parties agreed to an extension of the deadline until November 23.
The latest figures from Barça showed that the club had lost 88 million pounds and had accumulated a net debt that had doubled to 440 million pounds.
Source: m.allfootballapp.com
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