Club news

SALARY CAP IN SPAIN

09 Oct 2016
Depor’s salary cap for the new season is €24.7 million, it’s the fifth lowest among the clubs at Primera División, but at the same time it’s the fifth with the highest growth within the last three seasons.

Website Palco23.com published an article related to the salary caps in Spain for the campaign 2016/17. This Catalan website writes about finances and sports and what they did was to collect all the information coming out from the clubs and compare them.

Initially Deportivo were expecting to have a salary cap of €23 million for the season 2016/17, in the end the amount at the start of season was €24.7 million after the club completed the transfer of Lucas Pérez. Depor’s cap is the fifth lowest in the league, only above UD Las Palmas, SD Eibar, Sporting Gijón and CA Osasuna.

The salary caps for the season 2016/17:

Club

Salary Cap

Real Madrid

419.3

Barcelona

390.7

Atlético

182.8

Valencia

129.7

Sevilla

123.8

Villarreal

76.9

Athletic

61.4

Real Sociedad

56.7

Espanyol

47.4

Betis

44.6

Málaga

43.1

Celta

39.3

Granada

31.9

Leganés

30.2

Alavés

28.6

Deportivo

24.7

Las Palmas

24.6

Eibar

23.5

Sporting

21.3

Osasuna

15.6

 

This salary cap represents the highest amount that the clubs can spend in salaries and transfers, including the B squad members with professional contracts and the coaching staffs. The calculation is considering the incomes for TV rights, players transfers, commercial contracts, ticket sells, money invested by shareholders and any other income that can be demonstrated to the LFP. It’s also limited by the normal expenses of the clubs and their annual payments of the debt among other subjects.  These limits can also be increased within a season depending of extra incomes that the clubs could obtain.

It calls the attention the fact that some recently promoted clubs (Leganés and Alavés) have bigger salary caps compared to Deportivo, but it is because these clubs have low debts, while the Galician club is limited by its big debt and the big payments that must be made each year (€6 million only to the tax agency).

Still, Depor have made big steps within the last three seasons, just to notice that the salary cap has grown from €15.3 million to €24.7 million, which means an increase of 61%. Only four clubs that have been in the league within the last three seasons have had a bigger growth: RC Celta (110%), Valencia CF (78%), Atlético Madrid (74%) and Villarreal CF (73%).

The reason for the growth is the fact that Depor have been paying the debt faster than it was expected. From the €140 million owed after the bankruptcy process the club expects to reduce the amount to €90 million by the end of this season. It’s expected a bigger increase in Depor’s cap for next season as the transfer of Lucas increased the speed in the reduction in the debt with the tax agency, which means that they annual payment will also decrease, so it will liberate resources by the moment of making the calculations for next campaign.

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ZAPPING

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