Real Madrid And Barcelona Can Flex Their Muscles On Signings

Spain’s top-tier soccer teams are in a position to loosen their purse strings after a La Liga committee today announced a change to its spending regulations.

The move gives league titleholder Barcelona a lift, as it assists clubs that have exceeded their spending allocation on players. While the Blaugrana’s arch rival Real Madrid can already splash the cash relatively freely, Barcelona has been more compromised when attracting expensive recruits, paying high salaries and registering its stars due to debt from past management and comparatively heavy expenditure—the latter recently made possible by activating economic levers.

In a cost-cutting measure, Spanish sides could only spend 40% of any savings previously made on their rosters. That has now risen to 50%. Or 60%, should a team save a significant amount—5% of the total squad cost. Barcelona and Real still tend to be among the most powerful when bolstering their on-field options, having the lion share on television income and brands that earn the most lucrative commercial deals.

Last season, Real began the campaign with €683.5 million ($747 million). For Barcelona, it was €656.5 million ($717 million), up significantly from a negative amount the season prior, after it sold club assets to raise funds amid catastrophic debt. Atlético Madrid had €341 million ($372.5 million), the third highest limit.

So far, the league’s headline arrivals this transfer window are Jude Bellingham to Real for €103 million ($112 million) and İlkay Gündoğan to Barcelona on a free transfer. Meanwhile, French central defender Loïc Badé has tied up his future with Europa League winner Sevilla for €12 million ($13 million). While trading has only just started, movements have been scarce overall. Of course, Real is still a possible destination for high-priced superstar Kylian Mbappé.

A Message To Saudi Arabia?

One key question here is why this development has come about. The stance from La Liga, under its official LaLiga Santander label, is to “stimulate signings” in the market—presumably to Spain and its many sides with modest purses.

Every day, it seems a renowned player becomes linked to the emergent, dollar-rich Saudi Arabian Pro League, whose teams have attracted pioneer Cristiano Ronaldo and former Real teammate Karim Benzema before others. Inter Milan midfielder Marcelo Brozovic and Bayern Munich forward Sadio Mané are among those rumoured to have entered the frame. And the ex-Wolves man Ruben Neves, only 26 years old, moving there shows younger talents are also considering opportunities in the Middle East.

Regarding finances, La Liga president Javier Tebas has been toeing the line for some time. While he wants Spanish clubs to be solvent, he knows the professional game is changing. Saudi Arabia especially, but also forces in the Premier League and Paris Saint-Germain in France, have dollars to burn, despite financial fair play supposedly keeping them in check.

He will understand that, for all its stringent measures, an elite soccer trademark like La Liga needs the best players in the world. That doesn’t mean the league will conform; Tebas has criticized the elitist Super League concept in the past, as well as PSG. However, with the Saudi Pro League reportedly hoping to broadcast its new acts to the world, La Liga will be thinking about how to reassert itself globally during this shift.

Alone, it’s without the money some other leagues and teams can offer. Yet, with another season on the horizon, it’s a sign that Spanish clubs are not ready to be overwhelmed yet, even if the motion has little impact more broadly.