Club news

THE SALARY CAP AND SPANISH FOOTBALL

26 Sep 2013
It’s one of the biggest novelties for the present season. The controversial salary cap ordered by the LFP was established in order to control the growing process of the club’s debts, but there’s a lot of criticism as it’s also increasing the distance between the teams.

For the present season the LFP established a series of measures that are trying to control the growing and worrying process that was pulling up the debt of the Spanish clubs. The crisis lived in recent years put the clubs on the spotlight as many people in the country understands that it’s unfair to see football’s clubs owing money to the Spanish Treasury just when the citizens are suffering the social security cuts.

The Spanish Financial Fair Play rules are now forcing the clubs to only hire the players they can pay, in this sense there’s a salary cap rule that’s very similar to the system used in the NBA. There are other measures implemented by the LFP, like fixing a budget for the incomes and to demand a plan to reduce the non-sporting expenses in 10% compared to the previous season.

Other measures are to force the clubs to increase their assets until the limit of the 30% of the sells at Primera División and 60% at Segunda, plus to establish a rating for the short term debt compared to the incomes generated on the previous season, this rating is 1.25 at Primera and 0.9 at Segunda.

In this way the cost of the squads at Primera & Segunda was reduced from the €750 million of the past season to the €660 million of the present campaign. And the first results of the new rules are already visible. Last week the LFP presented a report in which it was informed that the debt with the treasury was reduced from the €660 million (July 2012) to €620 million. It’s the first decrease in twelve years.

The LFP estimates that the global debt of the Primera & Segunda clubs was €2,700 million on July of 2012, and now expects this amount will be decreased to €2,400 by July of 2014. The short term goal is to reduce the debts to €2,000 million in three or four years.

Despite the numbers seem to be positive, there are many critics regarding the way the LFP is proceeding, because they are focusing in controlling the expenses without solving first the big difference between what the big two clubs in the country, Real Madrid and FC Barcelona, collect compared to the other teams.

And it’s that Real Madrid and FC Barcelona represent the 54.55% of the salary cap established for the entire Primera & Segunda División. So, the big two are having the advantage to aspire to the titles, while the rest are more worried of surviving and fulfilling the rules rather than of what happens on the pitch.

After the big two, Atlético Madrid have a salary cap of €66 million, followed by Valencia CF and Sevilla CF (between €45 and €50 million). The “middle class” at Primera is composed by Málaga CF, Villarreal CF, Real Sociedad and Athletic Bilbao, clubs that are in the range between the €30 and the €40 million.

Another group is composed by CA Osasuna, Getafe CF, Granada CF, RCD Espanyol and Real Betis, clubs with a salary cap between the €14 and the €23 million. Finally, the “low class” at Primera is composed by UD Almeria, Rayo Vallecano, Real Valladolid, Levante UD, Elche CF and RC Celta (between €11 and €14 million).

At Liga Adelante, the situation is tighter as the difference between the clubs is only of €8 million. Real Zaragoza, RCD Mallorca and Sporting Gijón are the three clubs with the highest salary cap (between €7 and €10 million). Then Depor have a limit of €5.5 million, followed by UD Las Palmas (€4.5 million). The rest of clubs are between the €2 and the €3 million, with Real Jaén having the lowest salary cap (around €2 million).

ARCHIVE NEWS SEPT/13

ZAPPING


Back to Club news