La Liga has dealt a significant blow to Barcelona by slashing their spending cap for the 2023-24 season.
The Catalan club, which has been grappling with severe financial issues, has seen its spending cap reduced to €270 million ($290 million).
This latest reduction is part of an ongoing financial struggle for Barcelona. Their spending cap was already reduced to €648 million in February of this year, and it has now been nearly halved. This cap determines the maximum amount a club is allowed to spend during a season on various expenses, including player and coaching staff salaries.
Despite making efforts to reduce their wage bill, Barcelona still has one of the highest wage bills in world football, estimated at over €400 million. The significant reduction in their spending cap means that they can only spend between 50% and 60% of any revenue generated or reductions made, following the league’s rules.
To address their financial challenges, Barcelona has had to take several measures, including selling club TV rights and partially selling assets. These financial constraints have also impacted their ability to register new signings, including players like Ilkay Gundogan, Inigo Martinez, and Oriol Romeu ahead of the new season.
La Liga, as a whole, has seen a substantial reduction in spending caps for clubs compared to the previous season. Real Madrid currently holds the highest cap at €727 million, followed by Atletico Madrid at €296 million.
Barcelona’s financial woes have been ongoing for several years, and they have had to part ways with high-profile players to alleviate their financial burden. Lionel Messi’s departure in the summer of 2021, due to financial constraints, was a significant turning point.
This latest reduction in the spending cap adds to the challenges facing Barcelona, making it even more difficult for them to compete in the transfer market and retain top talent. It will likely force the club to focus on selling players to generate funds and attempt to break even.
Barcelona’s new spending cap will shape their spending and recruitment plans for the current season and beyond, as they continue to navigate their financial difficulties.
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