Barcelona’s wage cap slashed amid monetary struggles
Barcelona’s wage cap has been considerably lowered due to its monetary struggles, turning into greater than seven occasions smaller than that of rival Real Madrid, the Spanish league mentioned Wednesday.
The league mentioned Barcelona’s spending restrict on salaries for the 2021-22 season has been set at 97 million euros ($113 million), about 285 million euros ($334 million) lower than a yr in the past.
The discount was a part of the explanation the Catalan membership failed to provide Lionel Messi a brand new contract and led to him becoming a member of Paris Saint-Germain.
Messi reportedly earned almost 140 million euros ($163 million) per season, though he mentioned he had agreed to chop his wage in half so he may stick with the membership.
Each membership has a unique wage cap calculated based mostly on a collection of things that embody revenues, prices and money owed. It is proportional to roughly 70% of a membership’s revenues.
The changes are a part of the Spanish league’s longstanding monetary management measures to scale back golf equipment’ money owed and hold them financially wholesome.
Barcelona’s struggles had already compelled the league to slash the membership’s cap from a league-high 670 million euros (now $785 million) in 2019-20 to 385 million euros ($450 million) final season.
In addition to dropping Messi, Barcelona additionally despatched Antoine Griezmann on mortgage to Atletico Madrid, and its solely signings this offseason had been free brokers.
Six different golf equipment now have greater spending limits than Barcelona’s.
Madrid’s cap is the very best, going from 470 million euros ($550 million) to 739 million euros ($863 million), which is 642 million euros ($750 million) greater than Barcelona’s. Madrid benefited from higher administration and particularly from not making large signings in latest switch home windows.
Sevilla adopted with a cap of 200 million euros ($233 million), up from 185 million euros ($215 million) a season in the past.
Atletico Madrid was third within the record after having its restrict lowered to 171 million euros ($199 million).
Valencia, owned by Singaporean businessman Peter Lim, was final within the record of first-division golf equipment, with its wage cap being lower from about 100 million ($116 million) euros to solely 30 million euros ($35 million).
The league’s complete cap for top-tier golf equipment was at 2.27 billion euros ($2.64 billion), a determine 2% decrease than it was final season.
Clubs are already benefiting from the monetary increase generated by the league’s new multibillion-dollar take care of funding fund CVC.
The league mentioned Spanish golf equipment spent 271 million euros ($316 million) in signings within the newest switch window, the bottom among the many high 5 European leagues.
