COVID-19: Real Madrid do not need to cut wages

By Agency Reporter On Mar 30, 2020 0

Real Madrid have no pressing need to reduce their wage bill in the coming months due to the economic strength of the club, report Marca.

A number of La Liga clubs have announced they are activating an ERTE – Spain’s temporary redundancy scheme which is activated by the state of emergency within the country, with businesses losing access to their profits.

As outlined by El Mundo last week, Atletico de Madrid have declared an ERTE to reduce costs on employees: “With the sole objective of guaranteeing the survival of the club.”

An Espanyol statement also confirmed 70 percent pay cut for all players, coaches, physios of their men’s, women’s and youth teams while a report in Cadena Cope has outlined how Barcelona are doing similar.

However, Madrid’s wage budget is less than 50% of their overall income while Barcelona’s is said to be closer to 80% – hence the difference in prioritising a wage reduction for staff.

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LaLiga has released a statement to announce that it has suspended all top-flight and second-tier games: 'Given the circumstances that have come to light this morning, such as the quarantine put in place at Real Madrid and possible positive cases at other clubs, LaLiga has decided to continue with the next phase of the protocol of action against COVID-19. In accordance with measures established in the Royal Decree 664/1997 of May 12, it has been agreed that the competition will be suspended for the next two matchdays. This decision will be reevaluated after the completion of the quarantines undertaken at the affected clubs and other possible situations that may arise. As the organiser of the competition, LaLiga has communicated the decision to the RFEF (Spanish Football Federation) the CSD (High Court of Sport) and the clubs'. – LaLiga ha anunciado que suspende la competición en Primera y Segunda División mediante el siguiente comunicado: “Ante las circunstancias conocidas esta mañana, referidas a la cuarentena establecida en el Real Madrid y los posibles positivos en jugadores de otros clubes, LaLiga considera que se dan ya las circustancias para que se siga con la siguiente fase del protocolo de actuación contra el COVID- 19. En consecuencia, de acuerdo con las medidas establecidas en el Real Decreto 664/1997 de 12 de mayo, acuerda la suspensión, al menos, de las dos próximas jornadas. Dicha decisión será reevaluada tras la finalización de las cuarentenas decretadas en los clubes afectados y de otras posibles situaciones que pudieran darse. LaLiga, como organizadora de la competición, ha procedido a comunicarlo a la RFEF, al CSD y a los clubes”. #RealMadrid

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It is also outlined how Cristiano Ronaldo’s €100m sale to Juventus alongside Madrid continually to operate on a profit highlights their economic proficiency.

The coronavirus outbreak has brought sport across the world to a halt with Spanish football suspended indefinitely – meaning that all clubs have no income from matchdays or, for the elite clubs, their museums.

Spain is now behind only Italy on the global scale for the most deaths due to the virus, with the nation now 15 days into a 30-day state of lockdown.