Real Madrid’s $355 million win over Barcelona
Real Madrid remains the team with the highest spending on player salaries and transfers at €761 million; although Barcelona has cut that figure by €80 million.
Real Madrid remains the LaLiga club with the highest spending limit for players and transfers. The league has updated the salary caps for both the First and Second Divisions, and Real Madrid can now spend up to $822 million, compared with FC Barcelona’s $467 million. Madrid’s limit represents an increase of $88.1 million.
How is the salary cap calculated?
The Sports Squad Cost Limit sets the maximum amount each Spanish club may spend on salaries for players, the head coach, assistant coaches and fitness staff who are part of the registered squad. It also covers spending on the reserve team, academy players and other club sections classified as non registered squad members.
Eligible sporting payroll costs include fixed and variable salaries, whether paid in cash or in kind such as housing, vehicles or travel. It also includes payments for image rights, amortisation of transfer fees, social security contributions, compensation for contract terminations, collective bonuses and agent fees.
The limit is calculated by subtracting structural expenses and projected debt repayments over the season from each club’s expected income, including revenue from broadcasting rights, commercial activities and ticket sales.
Each club proposes its own salary cap, and may even choose to operate below the maximum permitted threshold. However, all limits must comply with LaLiga’s Economic Control regulations and be approved by the Validation Body. If a proposed cap does not guarantee the club’s financial stability, the Validation Body will reduce it accordingly.
If a club ends the season having exceeded its limit, it will face restrictions on registering new players or renewing contracts until it restores financial compliance.
Related stories
Rodrygo says goodbye to World Cup
Officials chosen for Copa clash
Get closer to the game! Whether you like your soccer of the European variety or that on this side of the pond, our AS USA app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more. Plus, stay updated on NFL, NBA and all other big sports stories as well as the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.
And there’s more: check out our TikTok and Instagram reels for bite-sized visual takes on all the biggest soccer news and insights.