Real Madrid and FC Barcelona would like to slash salaries for the next season, AS newspaper reported on Sunday.
The move is likely linked to the financial impact of the novel Coronavirus (Covid-19) crisis on the football world.
Real is aiming at a 30% reduction, while the percentage is reportedly higher at Barcelona. The pay cut would apply to players, staff and managers.
The new reductions come in addition to efforts already agreed to last month
According to AS, Real Madrid is facing a loss of at least 20% of its earnings, which would be equivalent to about 150 million euros. The total salaries earned by its players are estimated at 283 million euros and a 30% reduction would save the club 85 million euros, while 15 million would be saved on staff and management costs. The remaining employees would not be affected by the measure.
The savings would be higher at Barcelona. The Catalonia-based club is reportedly losing between 120 and 140 million euros of its earnings, and has calculated that its budget will shrink by 250 million euros. This season, the club paid out salaries totalling 680 million euros. This represented 60% to 65% of its total budget of 1.047 billion euros.
If Barcelona’s budget is reduced to 750 million euros, total salaries would have to be reduced to 450 million euros.