Messi983
Senior Member
I don't quite understand this. Does this La Liga salary cap and a reduction on our staff cost by 15m mean that we need to slash our staff cost by 15m from the 18/19 level? Or 19/20 level?
If what I am interpreting is true (probably not), that means we will have little to no wage room left for new players we want to buy (such as Lautaro Martinez) and contract renewal (such as Messi's) unless we offload several big wage earners such as Coutinho and Dembele?
We have reduced our salary cap limit for 15m since the last revision in September. This could be for multiple reasons (lower revenues than previously projected or structure costs or expected repayment of debt have increased).
But we've shed off some salaries by selling/loaning Alena, C. Perez, Todibo, Wague, Ruiz,... As you've said we'll also offload some big earners in summer and our revenues will increase again which should also set salary cap higher.
Here are the rules about LCPD (Limite de coste de plantilla deportiva) from the official LFP site (in Spanish)
https://assets.laliga.com/assets/2019/09/18/originals/7041722d03d4b80986e87f75e9de9456.pdf
And here even more detailed regulations about clubs budgets (also in Spanish). I know probably nobody will read this but just in case someone is interested...
https://files.laliga.es/pdf-hd/transparencia/normas-elaboracion-presupuestos-may18.pdf
I've tried my best to translate it so here is a quick summary.
Salary limit is very simplified calculated like this: revenues - stucture costs - expected repayment of the debt during the season
Clubs budgets should be presented until 30.4. for next season but they can be modified (more about this below).
LCPD includes:
1. inscribable costs - costs of first team players (with shirt numbers 1-25), first team coach and his staff
2. non-inscribable - costs of Barça B and Juvenil players; salaries of Barça B/youth teams coaches and their staffs
What's included in inscribable costs:
1. players wages (fixed or variable parts)
2. compensation for assignments of image rights (indvididual or collective)
3. annual amortisation costs of aquirring/registration of players (for example if we sign a player for 30m and on a 5 year contract his annual amortisation costs would be 6m)
4. social security fees
5. compensation for termination of contracts
6. costs of players temporarily loaned to other clubs (so if the club still pays (part of) his wages)
7. collective bonuses for reaching sporting objectives
8. at least 25% of adquisition price when the club register a player on a temporary loan for whom it can be determined he'll be bought later (loan with obligatory buy) or buy option which becomes obligatory if certain criterias are met like club staying in the league/qualified for European competitions or a loaned player reaching required individual achievements.
9. costs of aquirring players/coaches (agents fees)
10. fees for getting licenses for players and coaches
When deciding whether to include "easy" variable parts of players salaries (like goals, minutes played/game,...) they look if a player has reached those objectives in previous season(s) and if he did then full variable part of his salary is included in calculation.
Clubs budgets and therefore also their LCPD can be modified during the season with:
1. the clubs signing new sponsorship contracts (of course those contracts like basically any other transaction can be evaluated/revised by the league's validation body)
2. incomes from sales of players. When clubs realize sales and get real incomes they can modify their projected budgets and therefore LCPD. As a general rule in their projections they use average revenues in the last 3 seasons and with a maximum 25% of a "negotiating figure" (prize money for playing in different competitions, season tickets, TV rights and sponsorship money, marketing,...)
3. increase of capital - investments from owners or shareholders