Spanish top-flight league, Laliga has communicated to the 42 clubs belonging to Spain’s top two tiers of professional football, (Laliga and Segunda Division) the salary caps they are required to meet for the 2020/21 season that is underway.
The pandemic has affected a lot of clubs financially in the Spanish league due to lack of matchday revenue amongst the rest of them. Laliga in trying to reduce club debts and keep them financially healthy and has made longstanding financial control measures by setting a different salary cap for each club.
The different salary cap is calculated based on a series of factors such as revenues, costs and debts. Each club already knew their wage cap, but La Liga released the figures for reasons of transparency.
The squad spending limit includes spending on the first team in relation to players, the manager, assistant manager and fitness coach (registrable squad, as defined in Art. 38 of the Budget Preparation Rules) and spending on the reserves, the youth system and other areas (non-registrable squad, as defined in Art. 38 of the Budget Preparation Rules).
The total wage limit for all 20 clubs in Laliga for the ongoing 2020/21 season is €2.3billion, down €610million compared to the pandemic-affected 2019/20 season. While the total wage limit of second-tier Segunda Division is €237million.
The wage limit reduction for the 2020/21 season means some of its biggest clubs will take drastic cuts to their payrolls.
The club’s affected the most are Barcelona and Valencia. They are expected to make a drastic cut in their payroll of about 40% this season, while Real Madrid and Atletico Madrid will only make an adjustment of 27% each.
Spanish Giants, Barcelona had the highest wage cap in Laliga last season but the pandemic affected them a lot. Their wage cap has been reduced by more than €300million, their wage cap for the 2020/21 season will be €382.7million down from €671.4million last season.
Real Madrid will have the biggest wage limit this season which is €468.5million.
Laliga President, Javier Tebas, said there won’t be disciplinary action for clubs that go over the salary limit because of the unusual situation caused by the pandemic, but he warned that the clubs themselves would eventually feel the financial consequences of overspending.
Laliga President went on to talk about a lot of things, he said: “Clubs are doing what they have to do, this is an unusual year, This is going to affect a few more seasons, but hopefully we will be in a better situation compared to other European competitions.”