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Spanish Leagues

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Real Madrid debt defended

La Liga authorities have defended Real Madrid’s finances after it was revealed that the club’s overall debt was €541m.

Reports had suggested that Los Blancos owe almost half a billion euros – a figure backed up by Carlos Mendoza, President of the Association for Madrid’s Values, economist Jose Maria Gay de Liebana and Placido Rodriguez, the director of the Sports Economics Observatory.

EU targets clubs over competition breaches

It is well known that the European Commission has been investigating a number of clubs to see whether they are in breach of the state aid rules established by the Treaty of Rome.   Real Madrid and PSV Eindhoven are among the clubs under investigation.

Ronaldo eclipses Bale in wages stakes

Cristianio Ronaldo will earn more than £170m over the course of his new five year contract at Real Madrid. It makes him the highest paid forward in the world and is worth the equivalent of £660,000 a week before tax.

It is worth noting that almost half his salary will go straight into the cash starved Spanish treasury. Of his annual gross salary of £34.4m, £16.8m will be deducted in tax.

Ronaldo will get more than double the terms of his previous contract and this is much more than Gareth Bale is receiving, even though Bale cost Real Madrid £5m more than Ronaldo.

Profits up, debts down at Real Madrid

How could Real Madrid afford to pay so much for Gareth Bale? Part of the answer is that they are one of the few global brands in football and purchasing Bale at what many thought was an excessive price was a way of asserting that status. Remember that Real Madrid were the first sports club to achieve annual revenues of more than €500m.

Here we go again

The end of the transfer window is usually accompanied by a great deal of hand wringing about how much footballers get paid.   The latest example is calculations of how much Gareth Bale gets paid a minute, which is admittedly a lot, although his lifestyle seems to have been relatively modest up to now.

Transfer window breaks all records

Player transfer spending by Premier League clubs in the summer 2013 transfer window was a record, according to analysis by Deloitte. Gross spending totalled £630m, 29% up on the equivalent 2012 figure of £490m and £130m more than the previous record of £500m set in 2008.

Transfer deadline day

It's transfer deadline day and the last minute trolley dash is on. It has been suggested that Tottenham Hotspur held back on the Gareth Bale transfer to try and deny Arsenal signings that they want from Real Madrid as the Spainards seek to recoup some of Bale's fee.

Big spenders out in transfer window

As the last day of the transfer window on Monday approaches, uncertainty still clouds a possible £86m transfer of Gareth Bale to Real Madrid. This is not just significant for fans of the two clubs involved, it could trigger other big money deals. Real could try to partially cover its investment in Bale by selling off some of its top players. If the deal does go ahead, it will be the fifth successive occasion that Real has broken the world transfer record.

La Liga puts its house in order

It is often argued that La Liga is stronger than the Premier League, although advocates of new ownership models are unstinting in their praise of the Bundesliga. However, Spain's economic crisis has had a profound effect on the nation's football.

30 players have left La Liga this summer, believed to be a record number. Against this, there are real signs of progress in getting football's finances in order and reducing the legacy of debt. In the past this was often treated as a fact of life with regional or local governments providing hidden subsidies.

The quest for a marquee signing

The current transfer window in Europe has been dominated by a quest for marquee signings. However, there are not that many really outstanding players available. When demand is strong but supply is limited and finite, strange things happen to price. Hence Real Madrid's willingness to pay over £100m for Gareth Bale, far more than he is worth.