Is La Liga’s Economic Control regulations outsmarting the rest of the ‘Big Five’?

In the 2019/20 football season, a time which was plagued by the beginning of the coronavirus pandemic, La Liga’s Economic Control regulations benefited both of the two top divisions in Spain.

Overall, Spain’s top two divisions posted a 77-million-euro net profit in the 2019/20 season, whilst other top leagues such as the Bundesliga 1 and 2 suffered a net loss of 213 million euros.

La Liga was the only one of Europe’s top five major competitions to turn a profit during the 2019/20 season and the Economic Control mechanisms played a vital role in achieving that feat.

But what exactly is La Liga’s Economic Control? Is it similar to the A-League’s salary cap?

La Liga’s Economic Control, launched in 2013, is a regulatory framework that was self-imposed by the La Liga clubs with the clear objective of guaranteeing the sustainability of the competition and of the clubs themselves through financial review.

What makes the control measures different to UEFA’s Financial Fair play is that La Liga’s Economic Control has a preventative nature. The clubs are aware of how much they can spend in advance, allowing them to easily stay within the limits and prevent an accumulation of debt which is unstainable.

These measures differentiate La Liga from the rest of the major five European leagues, when it comes to activity in the transfer market.

When making signings in the market, one of the pillars of Economic Control is noticeably important, that of the Squad Cost Limit (SCL).

The SCL is essentially the amount that each club can spend on their squad. The framework isn’t just concerned with the salaries of these professionals but other factors too, such as image right payments, variable payments, license fees and other remunerations.

Overall, the limit for each club corresponds to this equation: Budgeted non-sporting expenses are subtracted from the budgeted revenues, taking also into account the debt repayments. The remaining sum is the SCL of the club in question.

When a club wants to sign a new player, they send all the documentation to La Liga, who will authorise or reject the registration of the player – based on the rules and on the SCL at the date of the application.

La Liga have a valuation body – who use reports from independent experts and follow the rules set out in the policy framework. They are allowed, at any time, to revise any particular operation. For example – they can revise a deal to ensure that it is in line with current market values and/or economic trends.

This guarantees that all registrations of players by La Liga clubs are in line with Economic Control regulations. Only in this way can it be certain that all of the teams are competing equally and that there is no form of financial doping, ensuring the sustainable growth of La Liga clubs.

Overall, the implementation of these regulations has helped La Liga hold on to a strong financial position since 2013.

From 2014/15 to 2019/20, the combined equity of La Liga clubs rose by 250%, with debt owed to public bodies going down from €650m in 2013 (the majority overdue) to just €23m in 2021 (all up to date).

Also, complaints from players over non-payment have fallen drastically, from €89m worth in 2011 to €1.5m worth in 2021, with most of the current objections stemming from conflicting interpretations of criteria, rather than unsubstantiated failures to pay.

General Manager at Sevilla FC, Jose Maria Cruz, recently summed it up best.

Speaking at the World Football Summit Europe conference, he credited the success of the economic regulations as a major factor in to why the Spanish competition was so well prepared to deal with the effects of a global pandemic.

“We have been very lucky in Spain and in Europe because we were better prepared than in the past,” he said at the World Football Summit Europe conference recently.

“If a pandemic like this had come five years ago, it would have been traumatic for the football industry…the Economic Control from La Liga, that has been functioning very well, has helped us.”

Will other leagues around the world look to adopt a similar type of model? What do you make of the A-League’s current regulations in comparison?

Get in touch with us via our social channels.

Previous ArticleNext Article

Driving Health Forward: Melbourne Victory partners with Hydrodol

Melbourne Victory has celebrated a new partnership with Australian wellness brand, Hydrodol. The deal will see both parties collaborate for the rest of the 2024/25 A-Leagues season.

Hydrodol is a significant supplements provider across Australia, New Zealand the Asia Pacific, supplying customers with cutting edge products tailored to assist with hydration and a range of other health concerns.

Together, Melbourne Victory and Hydrodol will join their philosophies of driving health and fitness forward in order to bring attention to healthy living practices among the Australian football community.

Melbourne Victory Managing Director, Caroline Carnegie, expressed admiration for the partnership.

“We are delighted to welcome Hydrodol to the Melbourne Victory family,” she said in a press release.

“This partnership reflects a shared vision of supporting individuals to perform at their best whether they’re on the pitch, in the stands, or in their daily lives. Together, we aim to provide meaningful benefits to our fans, players, and the broader Victory community.”

Hydrodol Marketing Manager, Jenn Leung, echoed Carnegie’s applause.

‘Hydrodol is passionate about empowering people to feel their best, whether they’re elite athletes or everyday Australians,” she said via press release.

“Partnering with Melbourne Victory, Australia’s biggest football club allows us to connect with a vibrant community that values health, performance, and well-being.”

Melbourne Victory Director of Football, John Didulica, outlined the significance of the club’s collaboration with Hydrodol in a press release.

“To lead successful football programs, it is essential that we look to partner with companies like Hydrodol, who can help maintain and improve our players’ recovery from the demands of professional football and readiness to compete each week,” he said via press release.

For the remaining games of the 2024/25 season, fans and spectators will be able to see Hydrodol advertisement material at the Home of the Matilda’s and AAMI Park, as both Melbourne Victory and Hydrodol work to bolster the health and wellbeing of the community.

FIFA set new global benchmark for Women’s Football Development

In a landmark initiative for women’s football, FIFA has unveiled an ambitious strategy aimed at reaching 60 million female players worldwide by 2027.

The comprehensive plan, supported by 13 distinct development programmes, is available to all 211 FIFA Member Associations, marking a significant step forward in the sport’s global evolution.

FIFA also took the announcement to highlight the achievements for women’s football in the Asian Football Confederation (AFC) and Oceanic Football Confederation (OFC).

The recently enhanced FIFA Women’s Development Programme underscores the organisation’s strengthened commitment to expanding the women’s game.

The upcoming 2025 calendar promises several groundbreaking developments for women’s football.

The Philippines will host the inaugural FIFA Futsal Women’s World Cup, while Morocco makes history as the first African nation to stage the FIFA U-17 Women’s World Cup.

The latter tournament sees significant expansion, growing from 16 to 24 teams and shifting to an annual format.

International competition reaches new heights with continental championships scheduled across multiple confederations.

The pathway to the FIFA Women’s World Cup Brazil 2027 commences with African qualification matches, while major regional tournaments including the UEFA Women’s EURO and OFC Women’s Nations Cup will crown new champions.

In a significant advancement for club football, all six confederations will host their respective continental club championships for the first time.

This renewed focus comes amid unprecedented growth in participation rates, particularly evident in the 2023 FIFA Women’s World Cup co-host nations.

New Zealand has reported a remarkable 27 per cent surge in female participation since 2022, with particularly strong growth among Māori and Pasifika communities, showing a 14 per cent increase.

A strategic partnership between New Zealand Football and Māori Football Aotearoa further strengthens grassroots development.

New Zealand Football CEO Andrew Pragnell voiced the federations successful results.

“The expansion of football and futsal in Aotearoa New Zealand has been extraordinary, with the Women’s World Cup serving as a genuine catalyst for growth,” he explained via official FIFA press release.

Across the Tasman, Football Australia’s Growing Football Fund Community Grants programme continues to foster development at the grassroots level.

The latest round of funding benefits 118 recipients, complementing the 121 projects supported in March 2024.

This initiative particularly emphasises regional development, with nearly half the grants allocated to areas outside major metropolitan centres.

The grants provide essential support for women’s football development, encompassing coach education, introductory programmes, and vital equipment procurement, further cementing the sport’s foundation at the community level.

Also within the AFC, footballing powerhouse Japan has successfully hosted the continent’s first female-exclusive Pro Licence coaching course.

A collaborative effort between FIFA, AFC, and the Japan Football Association (JFA), represents a significant milestone in professional football development.

The intensive seven-day course attracted participants from fourteen nations, featuring presents such as AFC Technical Director Andy Roxburgh and Japan men’s national team coach Hajime Moriyasu.

Participants gained valuable practical experience through observations of pre-season training sessions at both J.League and Nadeshiko League clubs.

JFA Technical Director Masanaga Kageyama emphasised the programme’s strategic importance and inclusivity.

“This course is a joint AFC/JFA initiative to increase the number of top-level, professionally licensed female coaches in Asia. It aims to provide existing talents with additional advice to help them achieve greater success in their current coaching positions and secure future success,” Kageyama explained via official FIFA press release.

This initiative aligns with JFA’s renowned long-term development philosophy and a significant advancement in creating pathways for women in professional football coaching.

This newly improved strategy at the global scale will hopefully allow for more women in both professional and amateur spaces to get the opportunities they deserve in football.

It also highlight’s that AFC & OFC nations, including Australia, will have a strong place within the growth of women’s football.

Read more on the FIFA Women’s Development Program here.

Most Popular Topics

Editor Picks

Send this to a friend