Real Madrid have been hit harder than many big clubs during the economic crisis created by COVID-19. Whereas clubs like Chelsea and Manchester City can still make big signings because of the backing of oligarchs, Los Blancos’ spending power has been crushed by the pandemic, affected most by the absence of fans in the stadium over a long period of time.
But of course, there have been clubs hit harder than Real. At the end of the day, Los Merengues are still the most popular team in the world, and unlike, say, their great rivals Barcelona, they did not throw their money away before the pandemic. So they are better-equipped to deal with the current financial realities than some of their peer clubs.
According to a report from Emilio V. Escudero of ABC Deportes (article in Spanish), La Liga has released the new salary limits for its teams. Real Madrid’s actually increased the most, up by five million euros to 473 million euros.
Per the report, Granada, Celta Vigo, and Huesca were the other clubs who actually had a comparative increase in available spending.
Real Madrid can spend 126 million euros more than Barcelona
But Los Blancos, of course, aren’t competing with those clubs. Their main competition in La Liga, including in this year’s tight title race, is Barcelona and Atletico Madrid. Both clubs are their biggest rivals.
ABC Deportes states that Real can spend 256 million euros more on their squad than Atletico Madrid and 126 million euros more than Barcelona. Those are significant margins, and it shows that Real’s prudency over the years is paying off in the case of emergency. What makes the margin of 126 million euros so interesting is that Barcelona is actually second among La Liga clubs, yet they seem to be so far behind Los Blancos in this respect.
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Real are in a better situation than any other Spanish club right now, but that doesn’t mean they have it easy either. Because in the Champions League, they are competing with the likes of PSG, Chelsea, and City. So they must remain vigilant and save every penny.
This summer will be a high-stakes one, given Los Merengues are chasing a superstar like Kylian Mbappe or Erling Haaland, and they are still worried about the futures of the world-class center back duo of Raphael Varane and Sergio Ramos. We’ll see if Los Blancos can afford to make a marquee signing like Mbappe or Haaland while juggling their books and current salaries.