Tebas took a strong stance.
In the recent summer transfer window, Liverpool made significant moves, spending almost half a billion euros on new players. This has sparked renewed discussions about financial fair play, which is a hot topic for clubs in Spain’s La Liga.
Details: Only three clubs in Spain could match such an intense transfer activity. Those are Real Madrid, Atlético, and Barcelona. La Liga not only has transfer limits but also a strict salary cap, which is crucial in this analysis.
Currently, if we consider a weekly wage of £150,000 for each new player, that amounts to €44 million per year, plus €106 million for amortization within financial fair play rules. Altogether, this totals €150 million.
For Real Madrid, Liverpool’s five new signings would represent 19% of the salary cap; for Barcelona, it would be 35%; and for Atlético, almost half. If any of these clubs exceed the cap (breaching the 1:1 rule), they would need to sell players worth four times the amount they overstepped (since only 25% of earnings can be reinvested in transfers in La Liga).
In conclusion, La Liga clubs would need to sell or reduce wages totaling €600 million to mirror Liverpool’s transfer activity without facing financial challenges.
Reminder: The financial fair play rules in La Liga continue to face criticism from league president Javier Tebas, as many believe these regulations hinder Spanish clubs from effectively competing with clubs in the Premier League.
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