Football Business : Barcelona, Real Madrid players brace for Phase 2 of salary cuts

Football Business,Football News,Barcelona,Real Madrid,Lionel Messi

The global football world is reeling under the Covid19 pain and situation is such that the salary correction in the football world is likely to continue for the next season as well. The reports suggest that two of the world’s most glamorous and most revered clubs of LaLiga, Barcelona and Real Madrid is planning to give up to 30% salary cuts to their squads even for the next league season. According to the LaLiga boss, “Clubs will have to reduce the salaries of their players, there’s no other remedy”. 

Lionel Messi and Co to face a 30% pay cut next season

Lionel Messi and Co face a 30% pay cut next season as Barcelona and Real Madrid consider extending the wage drop caused by coronavirus.

Barca players have been on a 70 per cent reduction since March, while Real’s squad agreed a cut of around 10-20 per cent as clubs’ finances suffer during the lockdown. Now the two LaLiga giants are negotiating with the European Club Association over more salary-slashing.

And it seems likely both squads will be prepared to continue with smaller pay-packets for another year. Barca reportedly hope such measures will save around $249m, having started the season with Spanish football’s top wage bill of $715m, including Messi’s weekly deal of about $613K.

Also Read: Football Business : Now Portugal’s top league returns, to resume of June 4th

Real Madrid – 30% Salary cut for next season also under consideration
According to reports, Real Madrid are considering another round of salary cuts for Zinedine Zidane’s squad as the Liga giants look to offset the negative economic impact of the Covid19 crisis. The club’s board want to slash another 30 percent off the wage bill next season, after asking the squad to take a 10 percent reduction in 2019-20 as the global pandemic halted football in LaLiga and beyond. The measure will apply to all playing staff and the club’s executives, but not to the more than 800 auxiliary staff who also work at the Bernabéu or in some capacity for the club.
La Liga President says – ‘Salary cuts for next season, new reality’

Spanish soccer clubs have no option but to reduce players’ salaries next season due to the financial impact of the coronavirus pandemic, La Liga president Javier Tebas has said. The Spanish season has been on hold since March and although matches are due to restart in June without spectators, the league still estimates clubs will lose a combined 300 million euros ($503m) in lost revenue due to the disruption.

To cope with steep income losses, many clubs including Barcelona and Atletico Madrid introduced temporary pay cuts to players and staff during the national state of emergency. Tebas believes further cuts will have to be made.

“Clubs will have to reduce the salaries of their players, there’s no other remedy,” Tebas said at a virtual conference organised by the Ibero-American Institute for sporting law, quoted by Spanish newspaper AS on Tuesday.

Spanish clubs splurged a record amount last year on transfers including Barcelona’s $130 million swoop for Antoine Griezmann from Atletico Madrid, who in turn splashed $137 million on Portuguese forward Joao Felix.

But Tebas said clubs would have to significantly reduce transfer activity this year in order to comply with the league’s strict salary controls, which dictate how much money teams can spend according to their projected revenues.

“Clubs now have squads that will exceed the salary limit for next season and teams are going to have to look far more towards youth football and their academies because transfers that exceed that limit will not be allowed, it’s impossible,” he said.

“I don’t think there will be many transfers next season, in Spain or anywhere else. “The current situation will not allow that. “Teams will either have to reduce footballers’ salaries or sign fewer or cheaper players.”