Real Madrid’s Sergio Ramos and teammates celebrate with the trophy after winning the La Liga at the Alfredo Di Stefano Stadium, Madrid July 16, 2020. Defending champions Real Madrid can spend €468 million, down €172.5 million from last season’s spending limit. — Reuters pic
Real Madrid’s Sergio Ramos and teammates celebrate with the trophy after winning the La Liga at the Alfredo Di Stefano Stadium, Madrid July 16, 2020. Defending champions Real Madrid can spend €468 million, down €172.5 million from last season’s spending limit. — Reuters pic

MADRID, Nov 17 — La Liga has slashed spending limits for its clubs by €610 million (RM2.9 billion) for the 2020-2021 season due to the financial impact of the Covid-19 pandemic, Spain’s top soccer league said today.

Barcelona’s salary cap has been cut to €382.7 million from last season’s €671 million, while defending champions Real Madrid can spend €468 million, down €172.5 million from last season’s spending limit.

Barcelona, who posted an after-tax loss of €97 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 per cent lasting from March to June, and got rid of several high earners, including striker Luis Suarez and playmaker Ivan Rakitic, in the close season.

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Atletico Madrid, who finished third last season, will be allowed to spend €252.72 million in 2020-21, down nearly €96 million from last season’s €348.50 million.

“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,” La Liga said in a statement. — Reuters