The clubs approve new changes in the economic control of LaLiga

The 42 clubs of LaLiga EA Sports and LaLiga Hypermotion approved on November 19 new modifications in the economic control that the employers exercise to maintain the financial sustainability of the entities, such as exemptions to renew players or greater permissiveness with capital increases aimed, mainly, at the Second Division.

LaLiga will apply a total of 13 new modifications to its economic control regulations, after the 42 clubs approved these changes on November 19, some of them coming into force in the winter market this January, while they will not do so until the following campaign.

One of them corresponds to article 103, by which now any club can renew a player per season without having to adhere to the financial conditions set by said economic control, in what LaLiga has considered as a ‘wild card’ or exemption, as long as it does not exceed 8% of the Sports Squad Cost Limit (LCPD).

They recalled from LaLiga that annual salary reductions that represent more than 10% of what that player already receives under contract, nor reductions from the accumulated total prior to renewal, are not allowed.

Furthermore, LaLiga now establishes certain percentages of minimum accumulated collection so that ordinary or recurring operations – for example, sponsorships (the so-called ‘levers’ do not fit here) – with a deferred price can be counted for the purposes of the LCPD. That is to say, LaLiga wants to avoid including contracts with, for example, sponsorships that are not paid beyond that season in possible financial ‘traps’ of the clubs, since they are now exposed to the risk of not being paid in the end.

Also, it is now allowed, at the free choice of the club, to allocate totally or partially in the season or the following the result of certain transfer operations that are carried out between the beginning of the player registration period in this winter market and the next summer market. Clubs will be able to save ‘fair play’ for the future and not spend that margin in the window in which they obtain it.

Until now, LaLiga left 10% of the LCPD registerable for the following season, but with the November reform that margin will be 6% in the First Division, while in the ‘Second’ it remains at 10% or a limit of 500,000 euros, whichever is greater.

There will also be a ‘wild card’ for Second Division clubs, since the remuneration agreed with a player may be computed as the Sports Squad Cost and not that resulting from those objective criteria, such as number of games, goals or promotions and relegations, included in article 41; although it can only be applied to one player per season and as long as it does not exceed 1.1 million.

Likewise, the money you spend on youth football – previously it was only women’s football – is now included in the 2 million euros allowed without penalty, as long as the shareholder proves that they have put the money into women’s football and/or youth football.

Regarding capital increases, until now, the maximum was 4 million euros per season, and now the clubs will have up to 25% of their net amount from the turnover. And the operations of clubs exceeded in ‘fair play’ will be allowed in the same window, but they must process the registration and cancellation at the same time.

And, finally, certain contractual renewals may be counted as reductions in the Sports Squad Cost without having to meet the conditions initially provided. It will be for field players over 36 years of age, goalkeepers over 38 years of age and renewals with a Sports Squad Cost reduction of less than 3% of the Net Income from Non-Sports Capital or 3 million.