BARCELONA, Spain — Barcelona’s squad spending limit has risen by almost €150 million ($174m) to €582m ($676m), LaLiga announced on Thursday, although it is still €250m ($290m) less than Real Madrid‘s huge €832m cap ($966m).
Barça’s increase explains why they were able to invest heavily in the squad this summer, with Anthony Gordon and Rodri both signed in deals that could eventually be worth more than €70m ($81m) each.
Madrid, meanwhile, also continued to spend big on players, with Yan Diomande arriving for an initial €125m ($145m) as one of six new arrivals for the first team during the transfer window.
Atlético Madrid rank third behind the Clásico rivals with a limit of €361m ($419m), with Villarreal (€170m / $197m) and Real Betis (€142m / $165m) completing the top five.
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At the other end of the scale, the publication of the caps on Thursday revealed how Sevilla are still struggling financially. The seven-time Europa League winners have the smallest limit in the league at €20m ($23m) annually.
The league’s squad cost limits, which are made public after each transfer window, denote the maximum amount that each club is permitted to spend on first-team players, as well as coaching staff, reserve and youth teams per season.
The final figure is roughly determined by the difference between a club’s revenue and its non-sporting outgoings and debt repayments.
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If clubs are operating outside of their limit — as has been the case for Barça in recent seasons — they are subject to certain restrictions when signing and registering players, such as only being able to spend a percentage of what they raise or save.
A source told ESPN that with the new spending caps, Barça are operating within their limit again, which explains why they also harboured hopes of signing striker Atlético Madrid forward Julián Álvarez this summer in a deal worth over €100m ($116m).
The return to Spotify Camp Nou last November and renewed sponsorship deals are among the reasons for the increase, the source said, with Barça set to confirm revenue for last season peaked over €1 billion ($1.16bn) for the first time in the club’s history at next week’s AGM.
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In addition to the increase in revenue, Barça’s ability to sign players this summer was also helped by the departure of some big earners, freeing up wage space within their spending limit.
Robert Lewandowski, Marc-André ter Stegen, Ronald Araújo, Ferran Torres and Marcus Rashford were among the players to leave, either permanently or temporarily.
