Revealed: Real Madrid allowed to spend twice as much as Barcelona as Spanish champions see salary limit cut

Madrid will be allowed to spend more than double the amount of bitter rivals Barcelona this season after La Liga revealed its updated salary caps. According to the latest figures published by the league, Madrid's spending power has increased while the Catalan giants have been hit with another significant reduction.

Following the closure of the summer transfer window, Real Madrid's salary limit has risen to €761m (£659m/$891m), cementing their position as the financial powerhouse of Spanish football. In stark contrast, Barcelona's cap has been slashed by €112m (£97m/$131m) since the last update in February, falling to just €351m (£304m/$411m). The figures highlight a staggering €409m gap in spending capacity between the two clubs.

The update also sees Atletico Madrid close in on Barcelona, with their limit increasing to €327m, leaving them just €24m behind the Spanish champions.

La Liga's Squad Cost Limit is the maximum amount each club can spend on its entire sporting staff, including players, coaches, and youth teams. The figure is not just a wage bill; it also covers transfer fees (through amortisation), agent commissions, bonuses, and other related expenses. The cap is calculated based on the difference between a club's projected income and its structural costs and debt repayments, with the aim of ensuring long-term financial stability.

The enormous financial disparity gives Real Madrid a significant advantage in the transfer market. Their healthy limit provides massive flexibility for future signings and lucrative contract renewals. For Barcelona, the restrictive cap continues a period of severe financial constraint. It will heavily impact their ability to register new players and compete for top transfer targets, forcing the club to continue seeking low-cost deals, player sales, and creative financial solutions to stay within their strict spending limits.