A massive debt pileup by Barcelona and Real Madrid have driven a rise in LaLiga clubs' short-term financial debt by a combined €370.3 million from 18/19 to 19/20.
The situation has been
described as "worrying" with normalisation of revenues some way off
in a comment to offthepitch.com.
However, the key point about any debt is whether one can service
it. A modern capitalist economy floats
on a sea of debt – risky, but that’s how it is.
LaLiga's director of
economic control says cost reductions and financial flexibility across the
board ensure clubs can continue to sustain operations.
Transfer spending
has been significantly reduced as a direct result of the league's financial
regulations, with LaLiga playing an active role in helping clubs find financing
solutions.
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