Clubs face the transfer market with new rules

Spanish Football faced the abyss more than a decade ago when dozens of clubs sank into bankruptcy proceedings and saw the disappearance of others. From this bad drink and the border situation, the economic control of the Liga was born, One of the Fair play Stricter financial regulations throughout the football world, in order to achieve economic sustainability. The problem, due to the crisis caused by covid, is that this regulation has forced some teams to tighten their belts so much that it has strangled them when going to the transfer market. Proof of this is that this summer Spain was the sixth league in spending. Not only the English Premier League and the Italian league were already ahead, the Bundesliga (another championship that appeals to sustainability), the French Ligue 1 and the Saudi league invested more in football players.

Hence, in November A series of measures have been approved that encourage and stimulate the ability to go to the market. It is not expected that there will be a revolution and waste (impossible) in the transfer window that now opens in January, Although, if the teams use these changes in economic control well, perhaps they can be strengthened by some good players at the final stage of the tournament. Of course, Liga has loosened the belt for clubs so that they can adapt to the current context living in the rest of the leagues , but They don’t do it for anything: clubs that use any of these new channels will have greater vigilance on their accounts , as the numbers of the next two seasons will be monitored (Instead of the current one only) when authorizing registration.

Bypassed the clubs

One of the most famous rules of economic control in recent years has been the measure of excessive clubs (those who spend on players more than their salary cap sets, which can be seen in the table). Two seasons ago, these teams could sign through the 1/4 rule (you could spend one euro out of every four saved) ; last year, it reached 50 %(from what was saved, you could spend this percentage on signings and salaries) and now the figure is changing again. Starting in January, over-extended clubs will be able to spend 60% of the savings they make on signings and 70% if they come from a franchise player (whose cost is a total limit of 5%). This procedure will also serve next summer.

Salary cap

To understand the following changes, it is necessary to remember what the maximum salary is and how it is calculated. This figure is the result of an equation that subtracts structural expenses from the income of each club (Electricity bills, materials, payments to non-sports workers), Accumulated debts and losses. That is, if you reduce debts, losses and expenses, you increase the funds to be used for salaries and contracts.

Capital increase

It was revised in three points. The first is that part of The capital injections that are made can be used to recover covid losses (That is, you reduce losses and have a larger salary cap). Secondly, it was possible to use funds from such expansions only by distributing them over four years , now they are reduced to two (If you inject 30 million dollars, you can use 15 million dollars this season and another 15 million dollars next season). Finally, the percentage of using extension funds for signing has changed: the healthiest will be able to spend 100% on salaries, for the majority up to 90% and for those who have problems up to 70%. The funds that were not used for signing will be used to clean up the balance sheet and losses of previous years.

Reforms

Since they also bet on the remodeling of stadiums, in many cases this leads to the closure of stands and loss of income. An exception is made and this reduction will not affect the maximum salary for two seasons, Take advantage of a maximum of 5% of their sales.

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About the Author: Muhammad Idham