La Liga has taken a big step to managing the finances in the top two football leagues in Spain. The league association has slashed the salary caps of all clubs across the two divisions. The heavy spenders Real Madrid and Barcelona have seen a significant drop in the wage caps.
Barcelona has seen the wage cap dropped to €300 million, while Real Madrid has seen a drop of €172.5 million. Atletico Madrid has witnessed the third biggest dip in wages with a drop of €131.8 million. The three Spanish giants continue to suffer the brunt of the pandemic as Europe is going through a second wave of the coronavirus.
The Premier League clubs in England did spend heavily during the summer transfer window. However, the big three in Spain had a quieter window. Real Madrid didn’t welcome a single new arrival in summer as they suffered financial losses due to the pandemic. Meanwhile, Barcelona also had to offload numerous players to make a couple of new signings.
The financial situation of these clubs is unlikely to improve soon as fans are yet to return completely to stadiums. The clubs may have to negotiate new wage terms with players if the second wave of the pandemic is long and more dangerous than the first one.
From a sporting point of view, the Spanish clubs will find it difficult to compete with the riches of the Premier League clubs. They are also struggling to perform better on the pitch than English clubs. The Spanish giants will have to rely on good coaching and clever recruitment to keep up with the biggest clubs in Europe.