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LaLiga slash Real Madrid wage cap by £150m

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LaLiga will slash Real Madrid’s wage cap by almost £150million for the 2021/2022 season, throwing the future of several players into doubt.

Last season, the club’s maximum operating budget was €473million (£403m), but that figure has dropped to €300m (£255m) for the upcoming campaign.

The salary cap is imposed by the league and is based on the club’s projected income.

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This will allow them to retain a model of economic sustainability, so that their spending is within their revenue streams.

In the 2019/2020 season before COVID-19 kicked in, Madrid’s salary budget stood at €641million. This means the cap has more than halved in that two-year timeframe.

That drop led to Los Blancos not signing any players last summer, with a number of young players sold. Achraf Hakimi, Sergio Reguilon and Oscar Rodriguez were among the academy graduates to be permanently sold, as James Rodriguez joined Everton.

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The loan exits of Gareth Bale, Brahim Diaz, Luka Jovic and Martin Odegaard also temporarily eased the wage bill, but that quartet of players has now returned to the club.

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