La Liga has slashed spending limits for its clubs by €610 million ($724.25m) for the 2020/2021 season due to the financial impact of the Covid-19 pandemic, the league said on Tuesday.
Barcelona's salary cap has been cut to €382.7m from last season's €671m – by nearly €288m – while defending champions Real Madrid can spend €468m, down €172.5m from last season's spending limit.
Barcelona, who posted an after-tax loss of €97m for the 2019/20 financial year, initiated a fresh round of pay cuts last month despite opposition from several players.
The club had earlier imposed a temporary pay cut of 70 per cent lasting from March to June, and got rid of several high earners, including striker Luis Suarez and playmaker Ivan Rakitic, in the close season.
Atletico Madrid, who finished third last season, will be allowed to spend €252.72m in 2020/21, down nearly €96m from last season.
"This squad spending limit denotes the maximum amount that each club can spend... including spending on the first team in relation to players, the manager, assistant manager and fitness coach," La Liga said in a statement.
The total wage limit for all 20 La Liga clubs is now €2.33bn.
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Barca and other major clubs introduce wage cuts
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Lionel Messi and his Barcelona teammates have agreed to take a pay cut as have Barcelona's basketball first team. AFP -
Juventus announced that all first-team players and manager Maurizio Sarri would take a one-third pay cut for the next four months. EPA -
Atletico Madrid confirmed that the first team and staff would be taking pay cuts to help the club continue to pay other workers during the lockdown. AFP -
Espanyol announced pay cuts for sporting staff, including the men's and women's first team, reserve teams and Under-19s. EPA -
Borussia Monchengladbach players have taken a wage cut after the players offered to forgo wages to help other workers at the club. "The team has offered to forgo salary if it can help the club and the employees," the club's managing director Stephan Schippers said. EPA -
Borussia Dortmund confirmed that the first team will "waive part of their salaries", the club announced. AP Photo -
Bayern Munich announced that the first team football squad would take a 20 per cent pay cut. Getty Images -
Union Berlin announced that their first team squad would go entirely without wages, although there was no timescale for how long. Reuters
