LaLiga has slashed spending limits for its clubs by $724.25 million for the 2020-2021 season due to the financial impact of the COVID-19 pandemic, Spain's top soccer league said on Tuesday.
Barcelona's salary cap has been cut to $454 million from last season's $796 million, while defending champions Real Madrid can spend $555 million, down $205 million from last season's spending limit.
Barcelona, who posted an after-tax loss of $115 million for the 2019-20 financial year, initiated a fresh round of pay cuts last month despite opposition from several players. The club had earlier imposed a temporary pay cut of 70% lasting from March to June, and got rid of several high earners, including striker Luis Suarez and playmaker Ivan Rakitic, in the close season.
Atletico Madrid, who finished third last season, will be allowed to spend $300 million in 2020-21, down nearly $114 million from last season's $414 million.
New salary caps in La Liga. (What league allows, in other words)
Big drops: over €600m in total.
Barça down by €288m
Madrid down by €172m
Atlético down by €126m pic.twitter.com/ask7ZupTQf— Sid Lowe (@sidlowe) November 17, 2020
"This squad spending limit denotes the maximum amount that each club can spend... including spending on the first team in relation to players, the manager, assistant manager and fitness coach," LaLiga said in a statement.