Real Madrid are considering another round of salary cuts for Zinedine Zidane’s squad because of negative economic effects of the coronavirus crisis.
According to AS, the board of the club wants to slash another 30 per cent off next season’s wage bill, after asking the squad to take a 10 per cent reduction in 2019-20 as the global pandemic stopped football in La Liga.
The highest paid members of Real squad are Sergio Ramos and Gareth Bale, both of whom can expect their annual wages of €14.5 million to fall to just over €10 million.
The rest of the squad are naturally earning less but a 30 percent cut will certainly alleviate some of Madrid’s financial problems due to the lack of match day revenue and the closure of the club’s museum and tour and merchandising outlets.
All Liga clubs and their counterparts across Europe are forced to make cuts with those who earn more from marketing and merchandising more exposed to losses as the Covid-19 crisis eats into the sport’s economy.
Real Madrid’s budget for this season was €822 million: €161 million for season tickets and day ticket sales; €109 million for friendly games and tournaments; €180 million €180 for television rights and €371m in marketing.
A 20 percent hit on that total, which is the current best-case scenario for Madrid and the rest of LaLiga, would represent a loss of €165m against annual outgoings of €741m.
Madrid’s first-team wage bill stands at €283 m, meaning that, according to internal estimates, a 30 percent reduction across the board (including the reserve side, Castilla, and the club’s board) would save the club €100 m per year.