Real Madrid will not be hurt financially despite signing Kylian Mbappe, though, FC Barcelona and their struggles on this front will continue with their spending cap being cut down to $220 million by the LALIGA on Tuesday.
The Blaugrana will be delicately placed heading into the summer transfer window, though Atletico Madrid has the second-highest cap after Real Madrid ($786 million) of $327 million.
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Spanish clubs have separate spending limits, varying as per different factors like revenues, costs, and debts. It is in proportion to 70% of the revenues of a club.
The limits determine the maximum sums that every club can shell out on players, coaches, youth setups, amongst other expenditures of the club. Teams that exceed that cap have to discover newer ways to either cut costs or to lure fresh investments.
🚨🧨 Frenkie de Jong on recent reports about plans to leave Barça: “There are lot of fake news on the press. Some of you should feel ashamed, this has to stop”.
“People invented numbers of my salary”.“I’m very happy at Barça, I hope to stay here for many years”. 💙❤️ pic.twitter.com/hHsKdQCcZo— Fabrizio Romano (@FabrizioRomano) February 20, 2024
Barcelona's cap, which was at 270 million euros after the summer transfer window, has been gradually reduced after it had been boosted by financial maneuvers that helped the club restructure its debts and gain space to sign new players.
If it can't restructure its finances again, the club will be in danger of not being allowed to register its players to compete. Madrid has a much brighter outlook, with enough cap space to add Mbapp and possibly others. The club hasn't made many blockbuster signings in recent seasons and is free to spend now if it wants to.
Mbapp told Paris Saint-Germain last week that he will leave the French club at the end of the season, opening the door for another attempt by Madrid to sign him. Madrid made a big push to sign the France star in 2022, with one of its offers rejected by PSG reportedly reaching nearly $216 million.
🚨 Kylian Mbappé will secure a world-record signing-on fee of about £128m after tax when he joins Real Madrid this summer.He will sign a five-year contract worth £12.8m a year after tax.(Source: @TimesSport) pic.twitter.com/G0OkyuKvhv
— Transfer News Live (@DeadlineDayLive) February 21, 2024
Only four other clubs have spending limits surpassing $108 million, namely: Sevilla ($164 million), Real Sociedad ($155 million), Villarreal ($154 million) and Athletic Bilbao ($108 million). Alavs has the lowest cap at 31 million euros ($33 million), just behind the 33 million euros ($35 million) of Las Palmas.
Girona, the surprise team in Spain this season, has a cap of $56 million. The Catalan club controlled by the Abu Dhabi-backed City Football Group network is six points behind leader Madrid in the Spanish league standings. Third-place Barcelona is eight points off the lead, while fourth-place Atletico trails Madrid by 11 points after 25 matches.
(With PTI inputs)
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