Spanish Clubs Suffer 2 Billion Euro Losses

By Daily sports on March 3, 2021

Spanish clubs in the top two divisions suffered a loss of earnings totalling 2.013 billion euros ($2.43 billion) for the 2019-20 and 2020-21 seasons due to the impact of the Covid-19 pandemic, according to a league report published on Tuesday.

“Despite the two billion less in revenues, which is huge, the clubs, and above all the big clubs, have been able to cope,” said La Liga chief Javier Tebas of the figures calculated after the close of the January transfer window.

For the 2019-20 campaign, clubs reported earnings of 4.8 billion euros, 366 million euros less than the 5.167 billion forecast, according to a report by global auditor PricewaterhouseCoopers.

For the current season, it estimates a shortfall of 1.647 billion euros based on the 5.269 billion initially expected, representing a loss of 31 percent for Spain's top two divisions.

However, clubs have reduced costs over the past two seasons by 984 million euros, resulting in a net loss of 1.03 billion euros that will be absorbed over the upcoming seasons.

“This debt will be paid off over the course of the next three to five seasons, so the impact of Covid-19 will be made up for at a rate of 150-250 million euros per season,” said La Liga managing director Jose Guerra.

“There are problems paying wages in other leagues. In Italy, in France and in the Premier League, several clubs have asked for state aid, us no,” said Tebas, who predicted it would take two seasons for club revenues to return to pre-pandemic levels.

Meanwhile, the considerable dip in revenues caused by the absence of supporters, has prompted the league to order Barcelona and Atletico Madrid to trim their budgets by around 35 million euros.

Real Madrid have the largest salary limit, with the reigning champions’ budget rising from 468.5 million to 473.3 as a result of profits made on transfers and their on-pitch success.

Barca saw their budget cut from 382.7 million euros to 347 million. Last season, the club spent 391.6 million euros on first-team wages.

Atletico will have to make savings of 35.4 million euros to meet their revised budget of 217.3 million.

The salary limits are calculated in line with revenues and are used by La Liga to help regulate the finances of the 42 clubs in Spain’s first and second tiers. (AFP)

•PHOTO: Laliga President, Javier Tebas 

Source Daily sports

Posted March 3, 2021


 

You may also like...
Ndidi Hails ‘Natural Goalscorer’ Kelechi Iheanacho’s Form

Akwa Utd overcome Wikki to go sixth

REVEALED: AFCON prize money for winners, runner-ups, others...

Amoo hails France on World Cup victory •Says...

Youth Games end today in Asaba

Joao Cancelo Signs Contract Extension At Man City...

 

Latest News CAF awards: Ajibade, Nnadozie, Edo Queens bag nominations Lagos SWAN, PAACC Hold SWAN Day At Golfview Hotels, Ikeja Crisis looms as Eagles’ form raises AFCON, W’Cup concerns Ex-Nigerian Super Falcons player handcuffed, children assaulted as police storm Anambra Football Academy Sports NFF, teammates console Nwabali on father’s death Abia Govt hails Nigeria Olympic Committee over staging an admin course in Umuahia Libya deliver Eagles 2025 AFCON ticket Eagles battle Cheetahs for 2025 AFCON ticket Yellow Greens gear up for T20 W’Cup qualifiers Tyson tips Fury to beat Joshua Sadiq absent as 22 Eagles train in Abidjan Eagles’ striking trio hot for Cheetahs, Amavubi clashes

 

Most Read Rangers International going, going . . . (55,164 views) Amaju Pinnick: A cat with nine lives (46,308 views) Second Term: Amaju Pinnick, Other NFF Heavyweights Home to Roost •How Pinnick Broke the Jinx (44,370 views) Missing $150,000 IAAF Grant: Solomon Dalung’s Hide and Seek game (44,015 views) Sports Development: Zenith Bank on the zenith (43,948 views) Current issues in Nigerian sports: Matters arising (43,904 views) Gov. Abdullahi Ganduje’s solid footprints, commitment to sports development in Kano State (43,743 views) NFF Presidency: Pinnick, Maigari, Ogunjobi, Okoye in Battle for Supremacy (43,312 views) Olopade, BET9A wave of revolution in NNL (42,366 views) Commonwealth Games 2018: Shame of Muhammadu Buhari, Solomon Dalung (41,054 views) Ibrahimovic’s Man U exit: Whose decision is it? And in whose interest? (39,507 views) John Mikel Obi: Segun Odegbami’s Outrageous Call! (38,932 views)

 

Phone numbers

Tel: +234(0)8066020976
+234(0)8055068145
+234(0)7013416146
+234(0)8094272884

Email addresses

info@dailysportsng.com
support@dailysportsng.com
publisher@dailysportsng.com

Office address

No 3, Adetoun Close, Off College Road, Ogba, Ikeja Lagos.
Website: www.dailysportsng.com

Social Media