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Real Madrid’s Financial Strength Puts Them in Good Position for Possible Signing of Mbappé

by Thomaz Oseghale
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Real Madrid's Financial Strength Puts Them in a Good Position for Possible Signing of Mbappé

Real Madrid is in a strong financial position ahead of the potential signing of Kylian Mbappé. With a spending limit of 727 million euros ($786 million), Real Madrid remains the Spanish club with the highest financial capability.

In contrast, Barcelona continues to face financial struggles, with their spending cap reduced to 204 million euros ($220 million) by the Spanish league.

This discrepancy in spending limits could put Barcelona in a delicate situation during the upcoming transfer window. On the other hand, Atletico Madrid has the second-highest cap at 303 million euros ($327 million).

Each club’s spending limit is determined based on factors such as revenues, costs, and debts, with the limit being approximately 70% of a club’s revenues.

These limits indicate the maximum amount each club can spend on players, coaches, youth systems, and other areas.

Barcelona’s spending cap was initially at 270 million euros after the summer transfer window but has been gradually reduced due to financial restructuring.

If the club fails to restructure its finances again, there is a risk of not being allowed to register its players to compete.

In contrast, Real Madrid has a more positive outlook, with enough cap space to potentially sign Mbappé and other players.

The club has not made many big-money signings in recent seasons, giving them the freedom to spend now if they choose to do so.

Mbappé recently informed Paris Saint-Germain that he intends to leave the club at the end of the season, which has opened the door for another potential move by Real Madrid.

In 2022, Madrid made a significant effort to sign the French star, with one of their offers reportedly reaching almost 200 million euros ($216 million) but being rejected by PSG.

Apart from Real Madrid and Barcelona, only four other Spanish clubs have spending limits exceeding 100 million euros ($108 million): Sevilla (152 million euros, $164 million), Real Sociedad (144 million euros, $155 million), Villarreal (143 million euros, $154 million), and Athletic Bilbao (100 million euros, $108 million).

On the other end of the spectrum, Alavés has the lowest cap at 31 million euros ($33 million), just behind Las Palmas with 33 million euros ($35 million).

Girona, the surprise team of the Spanish league this season, has a cap of 52 million euros ($56 million).

The club, controlled by the Abu Dhabi-backed City Football Group network, is currently six points behind leader Real Madrid in the league standings.

Barcelona sits in third place, eight points adrift, while Atletico Madrid trails Madrid by 11 points after 25 matches.

This article was updated 2 months ago

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