Spanish football cannot escape the crisis gripping the country or the cuts. The problem facing the national sport is the same as that which is currently ripping apart the country: debt.
The 20 La Liga clubs have a total debt of 1,861 million euros, which will become increasingly hard to pay off as they will experience a fall in income. Now one of the league's most important sources of income, television money, which accounts for between 30-40% of team's budgets, is in a precarious situation owing to the conflict between Mediapro and Canal Plus and the lack of an agreement between clubs over television rights.
Other stumbling blocks to clubs' economic wellbeing are the recent increase in VAT in Spain from 18% to 21%, the lack of interest in companies willing to sponsor clubs, and a sterile transfer market. Furthermore, many clubs have been forced to freeze or reduce their season ticket prices for the coming season to accommodate fans who are also struggling to cope with the deteriorating economy.
Half of the clubs in the league have announced they will reduce their team budgets for the coming season, with Sevilla declaring to cut theirs by over a third, from 92 million euros to 60 million. "We have to face reality," said club José María president Del Nido when he announced the move.
Of course, the country's two richest clubs, Real Madrid and Barcelona have escaped this predicament. For the two giants of Spanish football, it's business as usual. Both clubs finished last year with budget surpluses, and they go into next season with budgets of around 500 million each, five times the amount of Valencia, who have the third biggest budget in the league (104 million) and who have finished the last three seasons in third position.
When you compare the budgets of Spain's 'big two' with that of Rayo Vallecano, who next season will have to make do with just 7.5 million euros, you see the true inequality that exists within La Liga.
Newly promoted sides Celta, Deportivo and Valladolid will see an increase in their budgets in order to adapt to life in the top flight, and will be competing with Real Betis, Levante, Real Zaragoza, Mallorca, Real Sociedad and Granada to avoid the drop.
Atlético Madrid recently were forced to undergo an audit of their accounts, while around half of the clubs in La Liga have economic problems.
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