Real Madrid top
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La Liga has revealed their salary caps for all first and second division clubs in Spain after the transfer window closed on August 30th – although these figures will be reviewed in February. The salary caps are the maximum amount clubs can spend across the season and it varies based on a number of factors including revenue and their financial stability – full breakdown of the salary caps can be read here.
La Liga introduced the salary caps with the aim of curbing overspending to avoid clubs going out of business but critics believe it has limited competitiveness. The salary limits are imposed on costs of all playing and coaching staff across first-team and academy levels and clubs are aware of their limits before they conduct their transfer business in the summer. Barcelona famously had to pull ‘financial levers’ to abide by the rules and they were initially unable to register Dani Olmo this summer due to their salary cap. The Catalan giants, however, have been the biggest beneficiaries of this season’s new caps but they are still abiding by strict regulations.
Unsurprisingly, Real Madrid have the largest salary cap and it’s more than €300 million more than their nearest competitors Barcelona. Real Madrid’s salary cap has increased from €728m last season to €755m. Carlo Ancelotti’s squad had the biggest increase in market value this summer based on Transfermarkt figures after picking up Kylian Mbappé on a free transfer. As the graphic below highlights, Barcelona’s salary cap has increased by 57% from €270m to €426m and they’ve leapfrogged Atlético Madrid into second place.
Girona have been rewarded for qualifying for the Champions League for the first time in their history with their salary cap increasing by over €40m. But arguably the most eye-catching news is Sevilla’s continued downfall as the Andulisian club has the lowest salary cap of all the clubs in the top two tiers of Spanish football. Sevilla’s financial situation is very precarious with fans protesting against the ownership at the club and their salary cap has dropped by an incredible €166m. As a result, Sevilla had to sell high-profile stars this summer and loan out high earners – you can view their transfer business here – and bring in replacements on lower wages to ensure they brought down their outlay.
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