LaLiga Reveals Improved Financial Stability Through Latest Squad Cost Limits

LaLiga has announced the latest squad cost limits of the clubs in LaLiga Santander and LaLiga SmartBank. Overall growth initiatives by the clubs means that sides in playing in LaLiga Santander have a combined budget of almost €3bn this season (up from around 2.7bn last season). 

In LaLiga SmartBank, the total is €228m (up from €196m). The limits of clubs in LaLiga Santander and LaLiga SmartBank can be seen above.

LaLiga sets squad cost limits through its unique approach to economic control, where three distinct groups (including independent financial analysts) review the finances of every club before mutually agreeing their squad cost limit. This controls the amount that can be spent on the first team squad (up to 25 players), the head coach, assistant coach and head physio.

The process was created to ensure clubs could only spend the money that they were generating and over recent seasons this has brought club debt in LaLiga to historically low levels (and shrinking). 

By way of further comparison, LaLiga also summarised league spending over recent transfer windows and compared them with Europe’s biggest leagues. These numbers reveal LaLiga has the greatest balance between incomes and outgoings, underlining its long-term stability. Clubs are achieving this by developing valuable talent within their academies and exporting players for profit, while also competing worldwide for the best available players.