Real Madrid weigh up additional 30% wage cuts for players as their economic crisis deepens

Real Madrid weigh up additional 30% wage cuts for players

The headline story in Spanish paper AS on Sunday is tough reading for Real Madrid fans.

Just over a month ago, Los Blancos confirmed that their players were taking a voluntary pay cut during the Covid-19 crisis.

Real Madrid’s players and coaches from their football and basketball teams agreed to cut their salaries by up to 20% to protect the wages of all the other club employees.

There are reportedly 800 other employees at the club, report AS.

However, it’s now becoming apparent that those initial wage reductions aren’t sufficient in the current economic climate.

AS report that Real Madrid’s stars could further reduce their salaries by 30% for next season.

 

Real Madrid’s economic crisis becomes clearer

AS break down Real Madrid’s numbers revealing why the 30% wages cuts might be necessary.

Real Madrid had budgeted that next season’s total income would be 822 million euros.

That was broken down into four categories: 161 million from ticket sales and memberships, 109 million from friendlies, 180 million from TV rights and 371 million from retail sales.

However, Real Madrid now consider all these verticals under threat.

In the best case scenario, Real Madrid believe their original forecasts will drop by 20%, which would mean a loss of 165 million.

Put another way, it would mean that Real Madrid’s income would be 657 million, while the club’s expenses are valued at 741 million.

In conclusion, say AS, “cutting expenses is therefore an obligation” at the Santiago Bernabeu.

 

Bad news for top earners Sergio Ramos & Gareth Bale

Real Madrid’s first team squad carry a total wage bill of 283 million.

A 30% reduction would save Los Blancos 85 million.

AS note that Real Madrid’s top earners are Sergio Ramos and Gareth Bale, who net 14.5 million a season.

Should they accept the 30% cuts, their salaries will drop to 10 million.

 

Arsenal’s Pierre-Emerick Aubameyang & Real Madrid

At the same time as the Spanish press are reporting on Real Madrid’s need to cut costs, the club continue to be linked to Arsenal’s Pierre-Emerick Aubameyang in the UK press.

In the latest iteration of the transfer story, “Real Madrid have reportedly given Arsenal a deadline of June 15 to make a decision over Pierre-Emerick Aubameyang’s future with them,” say the Star.

How can anyone take this Aubameyang story seriously considering Real Madrid’s financial forecasts?

 

Also see: Best Netflix, Amazon & YouTube football documentaries & movies to watch during coronavirus isolation

9 best football documentaries to watch on ESPN+ during COVID-19 quarantine


This article was edited by Benjamin Newman.

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