Last Monday we reported in Mundo Deportivo about the new scenario that Fútbol Club Barcelona will have to face in the coming summer due to its excess of the Squad Cost Limit. And where the existing 1/4 rule will not apply until now, but a new scenario of 40% will come into effect.
A proposal that, as this newspaper has learned, was approved a week ago by the Delegate Commission of LaLiga, and was communicated the same day to the 42 clubs in the competition in a circular under the title “Modification of the budgeting rules of Clubs and SAD”. The measures that, as we already explained last Monday, have been reviewed for several months and the clubs already know that this new scenario could happen.
Changes that, as stated in the document itself, seek and facilitate “looking at the accumulated practice and the current situation” to achieve their goal “through a technically more accurate budgeting and a more adequate treatment to determine the registration capacity according to said objective, all under the principle of equity”.
Up to nine are, in general terms, the good news and changes in this new regulation. But there are two in particular that are significant because of their impact on Barcelona Football Club and given their future where they will once again find themselves very limited in their squad.
On the one hand, there is “The results from the transfer of future income, which by their nature have already been registered by the Club/SAD, are calculated for the Squad Cost Limit up to an amount per season of the transferred product or right which is equal to 5% of the value of the Businesses, computing all operations carried out throughout history, even before the entry into force of this change”
Something that is perfectly explained in the regulations itself where it states that “the result derived from operations corresponding to the assignment or transfer of assets or rights of the Club/SAD and by its nature and structure is constitutes an extraordinary result in the previous or current season, and includes the assignment to third parties of future income that the Club or any of its affiliated companies, regardless of the applicable method of accounting consolidation, has already recorded in their Profit and Loss Account and hopefully match the Club/SAD or either of If the transfer or transfer is not effected, the companies invested in it will be included in the Sports Squad Cost Limit proportionately each season as if the transfer had not taken place. transition periods and If the time of assignment cannot or cannot be determined, a reasonable method of integration approved by the Validation Body will apply.”
Take in the specific situation of the Barça club with levers that have been carried out last summer or in the future, this implies that the amount obtained from the sale of assets or any extraordinary income in the future cannot be included in the total of this for the Squad Cost Limit in the first season or the previous one; rather, it must be distributed over as many years as the agreement or assignment. Therefore, levers or future sales of assets cannot be included in their entirety to deal with this limitation. Hence the news passed by RAC1 this Monday where it announced, based on this circular, that the levers are limited by this new scenario and that the BLM will no longer serve the terms of Fair Play because the income has to be distributed for many years. as time goes on.the homework. The scale applies not only to Barça but also to all clubs that have passed. However, and as stated in the circular itself, “abnormal results in the previous season or in the current one will compute for the Sports Squad Cost Limit for the season proportional to the maximum amount of value for each season of the transferred product or right, equal to 5% of the Net Value of the average Business Figure validated by the Validation Body for the two previous seasons and the current one”.
If a player’s sale represents 5% of the squad’s value, the signing percentage will increase from 40% to 50%
And the second good point of this new regulation lies in this new scenario where the existing 1/4 reaches up to now 40% for clubs that exceed their squad value limit, as will happen next that summer at the Barça club or all those who exceed their template cost limit next summer. This situation was explained by the League in the same circular:
“For Clubs/SADs that exceed, the registration capacity is increased from 25% to 40% of the Sports Squad Cost reduction, and the same magnitude (registration capacity and Cost reduction) is computed for each season in current season and the next one. .” In other words, for every 10 million a club receives from the sale of a player, it can use up to 4 to sign a new one, unlike the 2.5 allowed by the previous rule.
But even if the sale of a footballer includes at least 5% of the cost of the squad, this percentage can reach 50%. With this proposal of 40%, the League also seeks to reactivate clubs that have exceeded their squad limit to sell these players, as a result of this, it ensures that they can use this new 40% compared to 25 Only % they have so far.
Along with these two major changes, we must point out some other special relationships. So, for example, the results from the sale of assets for the normal activity of clubs or SAD, various federative rights or with repurchase agreements, will no longer be calculated for the calculation of the Limit on Squad Cost.
Repurchasing assets or rights may lead to a reduction in the Template Cost Limit
In addition, according to this new circular, the repurchase of assets or rights calculated for the Staff Cost Limit will lead to a reduction of this limit.
It is also important when
Upon termination or transfer of a player with a loss, the provision for amortization forecasted for the current season is retained as Sports Squad Expense, albeit with the maximum loss incurred. If said loss is greater than the amortization of the current period, the excess is added to the calculation of the net result for materialized transfers, whether or not the amount initially budgeted for said item is reached.
New treasury plan affecting future signings of players and coaches
And the third particularly important point is the article related to the Treasury Plan for the two seasons following the current season for clubs or SADs that have carried out extraordinary operations and have been relegated. Something that also affects the Barça club due to its economic situation. Here are exempt clubs that are financially sound.
As stated in article 93, for any of these clubs, “the registration of a player or a coach will require the preparation of a Treasury Plan for the current season and the next two”.
This Plan has to be drawn up by clubs or SADs that both in the previous or current season have registered or are planning to register “non-recurring” revenue-generating operations that affect the Calculation of their Sports Squad Cost Limit or their registration capacity .
And, among the non-repeating operations, are the famous levers of the Barça club. The article speaks verbatim of “the sale of assets or rights that should be classified as non-current assets, except for players’ rights”
And in addition, they also do not repeat “transfers of players who, together for any of the previous and current seasons, require benefits above the average of the three previous seasons”. All this also affects clubs that last season were in the First Division and were relegated to the Second Division.
So, it is important that this Treasury Plan “show a positive Treasury balance at the beginning of the current season as well as the next two”. Balance estimated taking into account “the club’s financing ability according to its historical data, forecasts in the financial markets during the periods covered by said Plan”.
In other words, only the club that shows this positive balance can sign a player or coach for two or more seasons. Otherwise, you can only do it in one season.
Another of the proposals indicates that for the calculation of the Sports Squad Cost Limit, current costs will not be calculated, except for amortizations, consistent with the Impulse Plan.
Source: La Verdad
I am Shawn Partain, a journalist and content creator working for the Today Times Live. I specialize in sports journalism, writing articles that cover major sporting events and news stories. With a passion for storytelling and an eye for detail, I strive to be accurate and insightful in my work.
