How much would LaLiga lose if Real Madrid and Barcelona joined the European Super League?

With the exception of Real Madrid and Barcelona, LaLiga clubs are not in favour of the European Super League, which has, in theory, being given the green light to go ahead following Thursday’s ruling in the European Court of Justice. A little over a year ago, a study carried out by KPMG revealed the devastating financial impact the new European competition would have on the Spanish top flight.

LaLiga sees the ESL as a threat to its very existence. Clubs in Spain are not thought to be fans of the latest proposal, which would see participating teams promoted and relegated between three divisions and qualification from domestic leagues limited. They believe the “new” format goes against the basic principles established by the current system, in which the best teams at national level qualify to play in the corresponding continental competitions.

For instance, if league leaders Girona do the unthinkable and win LaLiga this season, they will play in next season’s Champions League, rather than the Europa Conference League (or potential future equivalent).

ESL “not the solution” to European soccer reform

“The big clubs want to decide everything. Not everybody is treated in the same way,” is the general belief. LaLiga feel a successful model has been put together in the last 20 years and has led to a balanced European soccer ecosystem. Although Spanish chiefs admit some reform is still necessary, they are adamant “the Super League is not the solution.”

According to the KPMG report commissioned by LaLiga in December 2022, the creation of the ESL would see revenue from national competitions tumble. It claims competitive balance would be destroyed and the value of domestic leagues would drop, which would have negative knock-on effects on countries’ GDP, employment and taxes. The main fear is ESL money would be shared among only two or three clubs, which would have clear negative consequences for the rest.

How would the Super League affect LaLiga?

The study claims 70% of the additional income generated by the Super League (at the expense of domestic championships) would go to just 5% of players. While their salaries would increase, but 95% other players would suffer pay cuts, while there would be big reductions in the amount of tax collected in affected countries as a result.

The report left little doubt about the impact the creation of the European Super League would have on soccer in Spain: “The Super League would lead to the complete destruction of competitive balance in LaLiga. The Super League would increase revenues by €400m ($439.4 million) for both Real Madrid and FC Barcelona, who would also maintain their commercial capacity. On the other hand, it means a 55% loss of revenue for the rest of the LaLiga clubs, creating a less attractive domestic league and decreasing interest for Spanish fans. In short, the big clubs will benefit to the detriment of the medium and small clubs”.

Using KPMG data as a guide, LaLiga believes that would translate to losses of around €1.2 billion ($1.32 billion) in television revenue, €406 million ($446 million) in sponsorship, €8.1 million ($8.9 million) in ticket sales and €44.7 million ($49.1 million) in season ticket sales.

Real Madrid and Barcelona the beneficiaries

LaLiga and KPMG even attempted to forecast how the ESL would affect the overall finances of Spanish top division teams. Real Madrid’s income would increase from €736 million ($808.4 million) to €847 million ($930.3 million), while Barcelona’s would similarly increase from €675 million ($741.4 million) to €874 million ($960 million). On the flip side, Atlético Madrid, the third biggest club in terms of budget, would see a drop from €373 million ($409.7 million) to €138 million ($151.6 million), with Sevilla’s falling from €173 million ($190 million) to just €43 million ($47.2 million).

“Earn it on the pitch,” say LaLiga clubs

The European Super League is unlikely to get the backing of Spanish clubs, bar the big two, any time soon, as shown by the “earn it on the pitch” message on social media on Thursday. In any case, LaLiga president Javier Tebas, one of the ESL’s fiercest critics, doesn’t feel his organisation is in any immediate danger: “There will be no Super League in two years or six years. The chance of establishing the Super League is zero. There is nothing to negotiate, when they want to kick you out of your home, don’t negotiate.”