Sports Business : After Barcelona Atletico Madrid players salary slashed by 70%

Atletico Madrid,Coronavirus,Sports Business,Sports Business News,LaLiga Club
Atletico Madrid’s players on Thursday joined the Barcelona counterparts in agreeing to a 70% pay cut to help the La Liga club face the financial impact of football suspension due to coronavirus pandemic. In a statement. the club said the reduction regards the coaches and players of the men’s first team, women’s first team and Atletico Madrid B salaries will be reduced by 70%. The Agreement with players is reached to supplement the salary of 430 employees affected by the ERTE.
The necessary amounts will be provided by the players and coaches of the men’s first team and by the members of the Management Committee. Furthermore, with the aim of guaranteeing the stability of Atlético de Madrid, the club has defined two different economic scenarios depending on the future development of the competitions. The suspension of activity following the declaration of the state of alarm in Spain as a result of the Covid-19 health crisis has led Atlético de Madrid to study measures to safeguard the club’s economic viability. Due to this complicated situation, and always with the objective of guaranteeing the future of the club, Atlético de Madrid has taken the decision to present a Temporary Employment Regulation File (ERTE).
The players and coaching staff of the men’s first team understand the need for the club to present this ERTE, respect its conditions and accept the resulting economic impact on their income. All the members of the first team have signed an internal agreement with the club that defines two different scenarios depending on the development of the current 2019-20 season. The file will involve a 70% reduction in the salaries of coaches and players of the men’s first team, women’s first team and Atlético de Madrid B for the duration of the state of alarm.
From the first moment, the objective of the club when studying the possible measures to tackle this delicate situation has been to minimise as much as possible the effect of said measures on the salaries of its employees. The agreement reached with the first team will also allow the club to supplement the salaries of 430 employees affected by the ERTE, from which only players and coaches of professional teams are excluded. To make this possible, the first team will contribute half of the necessary amount and the members of the club’s Management Committee, made up of the CEO and the directors of the different areas, the other half.