Barcelona salary limit dramatically reduced to one-eighth of Real Madrid's due to financial losses

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Real Madrid's spending limit is roughly eight times higher than Barcelona's this season, La Liga has confirmed.

Spanish clubs are limited to spending a certain amount on player signings and salaries, with that amount limited by each respective club's income and losses.

And Barcelona, who have notably struggled financially in recent years, have seen their spending limit reduced to less than a third of what it was last season.

Barcelona's situation

After reporting losses of €481m (£416m/$558m) earlier this year, Barca have seen their spending power reduced considerably.

The club had previously been able to spend €347m (£300m/$403m) last season but is now limited to just under €98m (£85m/$114m).

That massive reduction was behind the club's decision to sell Antoine Griezmann and was also part of what made it impossible for Barca to re-sign Lionel Messi this summer.

Real Madrid, meanwhile, have the highest salary limit in La Liga by some distance.

The club has seen its available money increased to almost €740m (€639m/$858m) for this term, up from just under €470m (€406m/$545m) last season.

Real Madrid's budget has increased due to player sales, as well as keeping hold of the vast transfer fee that the club had been prepared to spend to sign Kylian Mbappe this summer.

In total, Barcelona have the seventh-largest budget in La Liga, behind Real Madrid, Sevilla, Atletico Madrid, Villarreal, Real Sociedad and Athletic Bilbao.

What was said?

"They acknowledge much higher losses than what they had initially estimated, so the impact is greater on their spending limit," La Liga corporate director Jose Guerra said on Wednesday.

"If you take the €97m limit and add the losses, around €480m, we're talking about €570m, which would be more normal. So it's more or less stable."

He added: "I think there were solutions that could have kept Messi at the club, it was the club's management that decided to use their resources differently. I don't think it was just a question of their finances."

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