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Does La Liga have a sustainable funding formula?

This blog posts argues that La Liga has a sustainable funding formula for clubs that goes beyond financial fair play by placing a limit on the cost of a squad: Cost limits in La Liga

It is claimed, 'La Liga's economic control is implemented by a group of analysts who review the finances of every club before establishing a squad cost limit. With this number, clubs go into the new transfer window knowing the total amount they can spend on first team players and top coaching staff. Funds can be divided between transfer fees or wages according to the club's preferences, as La Liga does not impose a wage cap.'

The drawback of wage caps are subject to evasion unless one has a franchise system as in the MSL.

The system does not seem to have prevented serious financial problems at Malaga, but there are special factors applying there.

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