Javier Tebas give a break to the battered economy of the Barcelona… And the rest of professional clubs. The income crash of the members of the League, “About 500 million” According to Tebas himself, it has caused the greats of the League to see their salary limit cut in half. Although Barcelona achieved the 30% salary reduction in its workforce, it could not meet the 382 million limit, although it will avoid a sanction thanks to the temporary suspension of sanctions for two years to all its members for the economic consequences of the Covid-19 crisis.
Barcelona is one of the clubs that has seen its income the smallest due to the consequences of the Covid-19 pandemic. The azulgrana club has almost 300 million less salary limit than last season, when the League allowed him to spend up to 656,429,000 euros. Real Madrid has also reduced its spending ceiling, but the white club has 80 million euros more available to invest in the cost of the squad that the Catalans.
Thebes himself spoke about the situation of Barcelona, possibly the club in the League that has been worst hit by Covid-19. «Barcelona has suffered a 30% reduction in its income. You have to cut wages. If it can’t be that competitive, then a transition year. With the efforts that most of the clubs are doing, none is worrying. They will not be penalized if they do not meet the limit due to Covid, but what Barcelona cannot reduce this year will affect them for the following season and the cash flow factor. The problem is how the treasury will end this season if the income does not arrive.
In addition, the president of the League insisted that for the moment «Barcelona does not consider bankruptcy. The League has numerical data, but they perceive issues that we cannot perceive ». And he defended the management of the resigned Bartomeu: “Barcelona’s problem is the pandemic, not the Batomeu management. The important thing is that the club has a strategy to solve it.
How is the salary limit applied in LaLiga?
The salary limit for League clubs includes the salaries of players, the first and second coach and the physical trainer. The limit also includes spending on affiliate teams, in the quarry and other sections, according to article 38 of the Budgeting Regulations.
Since 2013, when Javier Tebas (who usually scores the goal) was not yet president and José Luis Astiazarán was, the League began to impose tough economic control measures on clubs in order to limit the cost of each squad. But the salary limit was not an invention of Astiazarán or Tebas, but they copied this system of the United States, where it has been applied for years in the NBA.
The objective of the salary limit is to avoid large differences in income and expenses in the clubs, that is, it was about guaranteeing the sustainability of the clubs in Spain, which had incurred astronomical debts, and reinforcing sports equity between the clubs to achieve a more competitive League.
What concepts does the salary limit include?
The salary limit is regulated in the Rules for the Preparation of Budgets for Clubs and SADs, a document approved by the League, in articles 34 to 41. According to article 34.1 of said document, the Club Balance Point is determined by the cost of the squad sporty. And the cost of the sports squad includes both the registrable sports staff and the non-registrable sports staff (article 35.1).
What expenses does each of the templates include?
The answer is found in article 38:
Inscribable Sports Squad: players, coach, assistant coach, physical trainer and coaches with similar functions of the first team.
Non-inscribable Sports Workforce: expenses in subsidiaries, quarry and other sports sections.
According to article 39, the concepts that are included in the cost limit of the Inscribable Sports Workforce are: fixed and variable salaries, Social Security, collective bonuses, acquisition costs (including commissions for agents) and amortizations.
What are the penalties for not complying with it?
The first final provision of the Regulations for the Preparation of Budgets for Clubs and SADs establishes that non-compliance with the salary limit will be sanctioned based on the Bylaws of the League. Specifically, the sanctioning regime applicable to economic control is regulated by article 78 bis of the Statutes. According to this article, infractions can be classified as very serious, serious and minor:
Very serious offenses
Exceeding the salary limit by more than 4%. In this case, the sanction is a fine of 20% of the excess incurred, with a minimum limit of 30,000 euros and a maximum of 300,000 euros. In the event of a repeat offense, the right to process federative licenses for the season immediately after the offense is suspended.
Exceeding the salary limit by more than 2% (and less than 4%). Here the sanction is a fine of 10% of the excess incurred, with a minimum limit of 600 euros and a maximum of 3,000 euros. Again, in the event of a repeat offense, the right to process federative licenses for the season immediately following the offense is suspended.
Exceeding the salary limit by less than 2%. For minor offenses, the penalty is a fine of 5% of the excess incurred, with a maximum of 600 euros.