15 Nov 2020 05:14:39
Ed2.read comments about La Liga president about poor financial situation of the clubs and need to reduce wages. will it be possible to throw some light about how bad situation is and how is Real Madrid and Barcelona impacted by it.

{Ed002's Note - The Spanish economy was shot a few years ago so it is not just the pandemic that has been impacting clubs. The majority of the clubs (effectively all except Barcelona, Real Madrid and Atletico Madrid) remain miffed that they get far less of the TV rights than the others and have far lower matchday income which means their total budgets (set based on turnover) are far lower which means that they cannot pay high wages and cannot spend on transfers - this means that FFP is not an issue of note as the budget are forced on the clubs. The loss of the matchday income last season means that the clubs are making losses now - Real Madrid addressed this by covering their losses (€190M) through immediate sales of €100M, future sales and the removal of significant wages like James and Bale. This is allowing them to restructure, work on future sales and look to bring in perhaps four high-end players they have as targets for next summer and one or two for 2022. Barcelona are in a different situation and whilst they pretty much broke even with transfers this summer they could not add the players they wanted and have huge salary problems so they are asking for players to take significant cuts. They are working hard to get players sold but it is not easy. Atletico are in a far better position as there wage bill is far less, and they are working on transfers for next summer already - with some success. The other clubs are in serious trouble as the matchday income was far more significant for them - and that has gone for now.}

1.) 17 Nov 2020
17 Nov 2020 13:17:31
Ed do today's imposed salary caps put further pressure on clubs. I read that Barcelona need to reduce their wage bill by €280 million, is that even achievable?

{Ed002's Note - Barcelona pretty much broke even with transfers this summer they could not add the players they wanted and have huge salary problems so they are asking for players to take significant cuts. They are working hard to get players sold but it is not easy. The Barcelona target is to reduce wage bill and bonuses by €135M a year and then sustain the lower budget. Plan is to sell players in January and the summer and look to removing big earners Messi (€70M) and Antoine Griezmann (€45M) from the bill and start to refine the quad. The Spanish clubs have to work within a budget set against their turnover.