Bayern Munich sign off on €120m Alphonso Davies deal despite club plans to cut spending drastically

Per BILD's Tobi Altschaffl and Christian Falk, Bayern's supervisory board has approved the spending of around €120m (£100m/$124m) on Alphonso Davies' contract extension. The total amount will include the player's salary for the next five years, add-ons and signing bonus. While the amount is extremely high, the club believe that they would have had to spend much more if they let go of the Canada international and signed a replacement.

The report also adds that the Bavarian club's current wage bill stands between €320-€340m and they want to slash it down to €300m. Following Davies's extension and pay hike, players like Jamal Musiala and Joshua Kimmich are also set to see their salaries increase. The Bundesliga giants have chalked out a plan to offload underperforming players who are on high wages and sign players who will come at a low cost to fulfil their wage bill target.

Real Madrid have been closely linked with a move for Davies, however, with the player set to extend his stay at Allianz Arena, Los Blancos will now focus on bringing in Liverpool's Trent Alexander-Arnold.

Vincent Kompany's Bayern side will be back in action on Wednesday as they take on Slovan Bratislava in a Champions League fixture at home.