Spanish clubs are financially healthy because of successful financial control: Tebas

Javier Tebas said the economic control brought about by La Liga seven years ago is proving its effectiveness allowing the Spanish clubs to adapt to the falling revenues far more effectively.

La Liga president Javier Tebas said the Indian federation has reorganised it well with the Indian Super League (ISL).   -  GETTY IMAGES

Most of the Spanish clubs are successfully weathering the financial crisis brought about by the pandemic because of a proper financial control put in place by the La Liga, feels its president Javier Tebas.

Speaking to a selected Indian media, Tebas said the economic control brought about by La Liga seven years ago is proving its effectiveness allowing the Spanish clubs to adapt to the falling revenues far more effectively than other big football leagues or competitions around the world.

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“The idea behind it was to make Spanish football healthy. If we look at the figures available, the Spanish clubs, excluding the big clubs like FC Barcelona and Real Madrid, owed three 300 million Euro before the control was put in place and now prior to the pandemic they were earning 300 million Euros,” Tebas explained.

“The economic control has also meant that the Spanish clubs can adapt to new situations of financial crisis like the one world is facing now. This means the clubs are more financially sound and can face the crisis when they are having less revenues. This is truly something that other competitions can learn as prior to every season, La Liga determines how much the clubs can spend on the salaries of the players and the technical staff. We do studies on their spending and the revenues and hence this has become quite a successful model,” the La Liga president said.

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The financial issues plaguing one of the global giants like Barcelona is not that serious and the club will be able to manage it once the financial aftereffects of the pandemic are over. “We are reading about FC Barcelona’s financial problems but the situation is not as bad as the headlines say. You need to know that if you have a debt, it needs to be in line with your revenues. I think they have a billion (Euros) in debt but they also generate one of the highest revenues in the world. So when the pandemic comes to an end FC Barcelona can change their strategy slightly and easily get through their problems,” Tebas said.

When asked in what way La Liga is helping the Spanish clubs come out the crisis, Tebas said the financial control is the biggest help offered by the parent body. “We are helping them by making them follow the economic control rules, which put a cap on the salaries of the players and spending of the clubs as a whole,” Tebas said.

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“In India there are big multinational companies and if we look at their balance sheets then we find that they have big debts. And that does not mean anything unless you take their revenue into account. Barcelona has said that before the pandemic they had a billion Euros in revenue which was equal or more than their debts. They still have 725 million (Euros) in revenue and so they need to reduce the salary volume like most companies are doing around the world. Their revenue capacity has not gone down a lot and they will be able to recover when things get back to normal,” he added.

The La Liga president was quite upbeat about the top Indian league – the Indian Super League. “The Indian federation has reorganised it well with the ISL, which is very important. One of the factors in football is that you have to be patient with development. It is a 15-20 year project and in that time India will surely grow a lot as far as football is concerned. Your worst enemy is trying to be quickly No. 1 in any sphere of competition,” he said.

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“And to reach that level of excellence India needs to have enough coaches and train the clubs to track and groom talents in an organised manner by having good academies. India is a huge country and I am sure there are many good footballers like the many good cricketers it has. And to do that you need to find them and that can be started from schools,” said Tebas before signing off.

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