Why Real Madrid’s transfer policy has changed

Real Madrid don’t want to end up like Barcelona

Of course, Real Madrid Clasico’s rivals, Barcelona, are in the exact same situation with their own stadium renovation plans stuck without a naming rights partner. However, unlike Madrid, Barcelona have spent freely in the last three transfer markets, snatching up talents such as Ousmane Dembele, Philipe Coutinho and Arturo Vidal. So why has Madrid saved up when a club with basically the exact same revenue have spent freely in the last four years.

Using the Catalans as a contrast, the answer is quite simple. Partly thanks to Real Madrid’s new transfer policy, Real Madrid have managed not just keep, but improve their financial health in a time where prices and wages are inflating like never before. Los Blancos are debt free and managed to keep wage costs down to around half of their spendings, despite having a talented roster.

In contrast, it seems like a matter of time before Barcelona spending catches up with them. Last year, Barcelona spent 80% of their revenue (a figure that includes the 220 million euros they received for Neymar). Their wage bill is the largest in Spain, 5.2 times above the La Liga average and accounting for 84% of their income, well over the UEFA recommended level of 55%. Barcelona president, Josep Maria Bartomeu, recently described the figures as a concern, however, he has done little to remedy it this season. Despite offloading several players off the wage bill, big money deals for Samuel Umitti and Gerard Pique along with the strain of new signings means Barcelona’s wage bill is likely to remain the same this upcoming season, remaining a ticking time bomb that will likely bite the Catalans in the future if not addressed.

Madrid would be wise to stay away from Barcelona’s spending model if they wish to maintain their current financial health and make that planned Neymar move in the near future.