How La Liga's economic controls go beyond Financial Fair Play

The strength of LaLiga is often referred to in terms of international trophies being won by Spanish clubs but an equally if not more important measure is longterm financial health Since 2013 with the clubsrsquo support the league has made this a top priority and introduced a set of measures that ensure responsible spending across all clubs playing in LaLiga Santander and LaLiga SmartBankAs well as getting a balanced financial situation and creating clear spending plans these measures called economic controls have introduced squad cost limits that impose strict budgets before the transfer window opensBy taking this proactive approach the league is adding features that are not included in UEFArsquos mandatory Financial Fair Play rulesldquoTo create the best league it is essential that all clubs are financially sustainablerdquo said Jose Guerra corporate general director at LaLiga ldquoThrough our system we help clubs to spend freely and compete at the top level without the risk of creating an unsustainable debt No other league has something as comprehensive as thisrdquoIncreasing disposable incomesLaLiga economic control is implemented by a group of analysts who review the finances of every club before establishing a squad cost limit With this number clubs go into the new transfer window knowing the total amount they can spend on first team players and top coaching staff Funds can be divided between transfer fees or wages according to the clubrsquos preferences as LaLiga does not impose a wage capThe rules are always evolving in line with changes in club operations and the participation of the clubs is key for this evolutionIn the event of disagreement between club and league clubs can turn to independent bodies to settle any differences that may existApplying these budgets over the coming seasons the controls ensure that every club takes a longterm approach to how they spend their incomes By working within strict limits clubs are saving money yearonyear that is being invested into growth projects Coupled with ongoing commercial activities the financial health of the whole league is increasingAs proof of this LaLiga recently published the latest squad cost limits of the clubs in LaLiga Santander and LaLiga SmartBank Clubs playing in LaLiga Santander were shown to have a combined budget of almost euro3bn a significant increase from last seasonrsquos figure of around euro27bnSimilarly in LaLiga SmartBank the club total is euro228m up from euro196m last yearldquoA club that is in a healthier financial state is more attractive to investors and increases employment opportunities while attracting more and more top quality playersrdquo Guerra noted ldquoThis has a huge impact on our ability to promote LaLiga to international broadcasters which only adds to the clubrsquos growth potentialrdquoTo emphasise its status in European football the league conducted an analysis of recent transfer spending among the top leagues in England Germany Italy and France In comparison to these competitions LaLiga has the greatest balance between spending and income showing longterm stability and the avoidance of debtIn addition LaLiga has the highest income from sales of its players and is highly competitive in the amount spent on transfers This shows the continued ability of Spanish clubs to develop playing talent and export it for profit while reinvesting that money on the best available playersldquoFor football to be economically stable we need more than UEFArsquos Financial Fair Playrdquo Guerra concludedldquoWorking side by side with the clubs we are looking ahead to the future not just reviewing past spending On and off the pitch this is helping the whole competition to growrdquoCatch up on all the latest sports news and updates here Also download the new midday Android and iOS apps to get latest updates