Clubs from the first and second divisions of Spanish football have learned how much they can spend in the upcoming transfer windows. FC Barcelona have more money to spend than previously but the team with the lowest squad cost limit has shocked everyone.
La Liga Squad Cost Limits Revealed: Sevilla in Big Financial Trouble
A Basic Explanation
Before revealing the numbers, it’s important to understand what these salary limits mean. These are figures set by the league to indicate to clubs how much they can spend on salaries going forward (not what they are currently spending). They are calculated based on revenue being brought in and how sustainably each club is being run. La Liga implements such measures to prevent financial fair play rules from being broken and to help maintain economic health among clubs in the top two divisions.
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This is unlike the Premier League which has retrospective “Profit and Sustainability Regulations” (PSR) that serve to punish clubs for breaking any rules. Many have praised La Liga for adopting this more proactive approach whilst clubs in England seem to try and get away with as much as they can before being caught. This results in point deductions and hefty fines which has cast doubt over the financial futures of clubs such as Everton and Nottingham Forest.
Real Madrid Given The Most Financial Liberty Once More
Sitting atop La Liga’s salary table are Real Madrid with a whopping €754 million to be spent on player wages. This is a great testimony to the way that President Florentino Pérez continues to run the club. Last season’s league and Champions League double has further boosted revenue as well as spending zero on direct transfer fees in the summer.
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Behind them are Barcelona, who you may remember a couple of seasons ago had a salary limit of negative €144 million. That meant they had to show at least €144 million of revenue before they were allowed to spend anything on wages. Now with €426 million to spend, it shows they have somewhat recovered since their post-pandemic financial crisis. However, with their El Clásico rivals having nearly double the funds, there’s still clearly a long way to go.
Sevilla’s Finance Woes Mirror Their On-Field Struggles
The club with the least amount to spend on wages this season is Sevilla FC with just €2.4 million assigned to them by the league. This isn’t among teams in the top flight, but for those in the second division too. This means they have less to spend on wages than teams such as CD Eldense and Club Deportivo Castellón, who barely have any second-division pedigree to their names.
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It’s the latest sign of a fast-moving downward spiral at the “historic” club, having been involved in relegation scraps for much of the past two seasons. Behind the scenes, their current president is in a legal dispute with the former president over who rightfully owns the club. Amazingly, these two people are father and son. If fans of clubs such as Manchester United or Chelsea think they are dysfunctional, they have got nothing on Sevilla.
