Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X

La Liga feature: How Spanish League's cost limits go beyond Financial Fair Play rules

La Liga

Bengaluru, March 4: The strength of La Liga is often referred to in terms of international trophies being won by Spanish clubs, but an equally if not more important measure is long-term financial health.

Since 2013, with the clubs' support, the league has made this a top priority and introduced a set of measures that ensure responsible spending across all clubs playing in La Liga Santander and Segunda B Division.

As well as getting a balanced financial situation and creating clear spending plans, these measures (called economic controls) have introduced squad cost limits that impose strict budgets before the transfer window opens.

With MSL Media inputs, myKhel.com looks at how the system of financial controls in La Liga has gone on to become one of the most comprehensive of any football league.

By taking this proactive approach, the league is adding features that are not included in UEFA's mandatory Financial Fair Play (FFP) rules.

Financially sustainable

Financially sustainable

"To create the best league it's essential that all clubs are financially sustainable," said La Liga corporate general director Jose Guerra.

"Through our system we help clubs to spend freely and compete at the top level, without the risk of creating an unsustainable debt. No other league has something as comprehensive as this," he added.

Economic control

Economic control

La Liga's economic control is implemented by a group of analysts who review the finances of every club before establishing a squad cost limit.

With this number, clubs go into the new transfer window knowing the total amount they can spend on first team players and top coaching staff. Funds can be divided between transfer fees or wages according to the club's preferences, as La Liga does not impose a wage cap.

Evolving rules

Evolving rules

The rules are always evolving in line with changes in club operations and the participation of the clubs is key for this evolution.

In the event of disagreement between club and league, clubs can turn to independent bodies to settle any differences that may exist.

Balanced spending

Balanced spending

To emphasise its status in European football, the league conducted an analysis of recent transfer spending among the top leagues in England, Germany, Italy and France.

In comparison to these competitions, La Liga has the greatest balance between spending and income, showing long-term stability and the avoidance of debt.

For Quick Alerts
Subscribe Now
For Quick Alerts
ALLOW NOTIFICATIONS
For Daily Alerts

Story first published: Wednesday, March 4, 2020, 15:51 [IST]
Other articles published on Mar 4, 2020
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Mykhel sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Mykhel website. However, you can change your cookie settings at any time. Learn more