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La Liga explains why Real Madrid’s salary limit has increased to €832.8 million

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Javier Tebas, La Liga president
Photo by Jan Kruger/Getty Images for Soccerex

La Liga released the salary limits of all 20 clubs yesterday and, rather unsurprisingly, Real Madrid were once again the club with the highest limit.

Los Blancos saw their salary cap increase to €832.8 million, underlining the exceptionally strong financial position they continue to occupy.

Now, as quoted by Mundo Deportivo, La Liga corporate director Javier Gomez explained the mechanism under which Madrid saw their salary limit increase.

La Liga explains Madrid’s increase

Gomez explained that the increase comes from a rule available to financially healthy clubs that meet the required economic ratios.

“It is normal. Under the regulations, certain clubs that meet specific ratios and have healthy accounts can use savings accumulated from previous years to increase their limit,” Gomez said.

That explanation is important because Madrid’s increased spending capacity is directly connected to the club’s financial position rather than an exceptional concession from La Liga.

Jose Mourinho and Florentino Perez of Real Madrid
Real Madrid’s high salary cap is reflective of their good accounts. (Photo courtesy: Real Madrid official website)

“They can request an increase of up to 25% and they use it. One thing is requesting it and another is actually using it,” he added.

Madrid rewarded for healthy finances

For Real Madrid, the key phrase is “healthy accounts.”

La Liga’s system effectively allows qualifying clubs to make use of financial strength built up in previous seasons.

Madrid have therefore been able to convert accumulated savings into greater flexibility within their squad cost limit.

That does not mean the club must spend everything available to them. As Gomez stressed, being authorised to increase the limit and actually using that entire capacity are two different things.

It nevertheless leaves Madrid with considerable room when planning contracts, renewals and future transfer windows.

Financial strength gives Madrid options

Los Blancos made several marquee signings this summer who would definitely have arrived with significant contract demands.

More importantly, the club committed a lot of money to the renewal of Vinicius Jr. back in the summer.

Real Madrid are planning contract renewals for Thibaut Courtois and Jude Bellingham. (Photo by Florencia Tan Jun/Getty Images)

Since the close of the transfer window, the club have turned their attention to renewing the contracts of their other superstars.

It has been revealed that Madrid have effectively agreed a contract renewal with shot-stopper Thibaut Courtois.

Los Blancos are also accelerating talks to renew Jude Bellingham’s contract before English clubs enter the scene.

Madrid’s strong financial position is allowing them to position themselves aggressively when it comes to securing the future of the squad.

Having the option is valuable, and it remains to be seen how the club use it.

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Real Madrid News

Aston Villa, AC Milan to battle it out for Real Madrid forward in January – report

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Endrick, Real Madrid player
Photo by Albert Perez/Getty Images

Real Madrid youngster Endrick continues to attract interest from several clubs ahead of another potential loan move in the upcoming January transfer window.

The latest side considering a move for the Brazilian forward is Aston Villa.

Indeed, according to reports relayed by Bernabeu Digital, the Premier League club are interested in signing the Real Madrid striker on loan in January.

No minutes for Endrick

Endrick has had very limited opportunities under Jose Mourinho this season. Across Real Madrid’s nine matches in La Liga and the UEFA Champions League, the Brazilian has played just four minutes, coming on in the 86th minute against Elche.

Such limited playing time has left the young forward struggling to gain the minutes and experience needed to develop his talent at Real Madrid.

Endrick of Real Madrid
Another loan exit beckons. (Photo by David Balogh/Getty Images)

As such, another loan move, like last January when he left for Olympique Lyon, could offer him a chance to play more regularly and continue his progression.

Aston Villa, managed by Unai Emery, have now emerged as an interested party to acquire the Brazilian international’s services on loan for the second half of the season.

AC Milan also interested in Endrick

Howver, Aston Villa are not the only club monitoring Endrick’s situation. AC Milan have also renewed their interest in the Brazilian forward.

The Rossoneri already held an interest in the 20-year-old forward during the summer transfer window and are knocking on the doors once again now.

Endrick of Real Madrid
AC Milan or Aston Villa for Endrick? (Photo by David Balogh/Getty Images)

In fact, some reports in Italy even go on to suggest that the youngster is ready to pounce on the opportunity to sign for the Serie A giants.

For now, however, there have been no concrete developments or formal approaches from any interested club.

Real Madrid are understood to be open to allowing Endrick to leave on loan, but they are not considering a permanent sale as they still have a lot of faith in the promising attacker whom they signed from Palmeiras.

With Aston Villa and AC Milan both interested, the coming months could prove important in determining where the young Brazilian will continue his development.

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