La Liga to introduce eight new rules to limit the impact of economic levers

According to Sport newspaper,

is set to implement eight new rules which will limit the amount of impact the sale of assets can have on a salary limit.

spent more than €150 million last summer despite their financial struggles and €1.3b debts. Barcelona’s president, Joan Laporta, claimed that they managed to spend money after activating economic levers.

The term 'economic levers' refers to a financial action where a club/franchise sells some of its assets partially to raise money to reduce debt.

According to these rules, La Liga clubs will not be able to sell essential assets, such as a stadium anymore.

Clubs will be able to sell their TV rights, but only providing they account for 5% of their total income. Although, assets not currently counting towards their income, will not be subject to that rule.

Clubs will not be able to sell and then rebuy assets at a beneficial rate in order to gain on the salary limit.

Previously clubs could spend 25% of what they saved or earned through sales, they will now be allowed to spend 40% of that same figure.

Clubs also have to show that they can pay footballers for two seasons, following the sale of assets, with a business plan.

La Liga Clubs exceeding their limits will only be allowed to increase their wage bill by 25% from one season to the next.

Clubs will not be allowed to take on the full cost of a player’s contract in one season and it still impacts their salary limit for the duration of the contract.

These new rules will effectively reduce any club’s ability to overcome its financial struggles through the sale of assets.

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