The summer transfer window is an enormous opportunity for clubs all around the world to improve. Whether it is acquiring a talented new player or selling a weak link, all teams look to upgrade their squads during this very opportune period of time. One of the most prominent teams that are anticipated to grow this summer is Real Madrid.
With their new manager Zinedine Zidane, who is eager to make massive reforms in the squad with his £300m+ budget in transfer overhaul, the Spanish giants have focused their attention on obtaining new players in order to get stronger as a team and make up for their failure last season as they engage in a colossal spending spree. However, too big a spending spree might also get them in trouble with the UEFA Fair Play Regulations.
The UEFA Fair Play Regulations are a set of rules that were established in order to hinder Soccer teams from spending more money than they can earn back in the ensuing seasons. This would improve the overall financial health of European club keeping many teams from excessive financial problems that may cause issues in the future. And if a team does not comply with these regulations, they are required to undergo disciplinary measures. These sanctions range from fines and deductions of points to disqualification from tournaments and revocation of awards.
Madrid, having made their first two signings, is expected to exceed their budget of £300m. Los Blancos have already spent £137m collectively on Eden Hazard and Luka Jovic, and that's just the tip of the iceberg when it comes to Zidane's plans for the squad this summer. Madrid is also said to be involved in countless other transfer news regarding top-notch players such as Paul Pogba, Ferland Mendy, Christian Eriksen and more. As a result, UEFA has been monitoring Madrid’s interactions with players that they aim to acquire.
According to the Regulations, a team is only allowed to spend around £4.5m more than they earn every three years. Nonetheless, it can only exceed this amount over budget if the club owner directly makes up for the exceeded amount. However, a club cannot do so through sponsorships and/or other links as the Uefa body will hold investigations that may lead to even harsher punishment.
Consequently, there are mainly two ways that Madrid can combat this dilemma. The first requires Los Blancos to stop spending money at a point where the club is certain of its ability to make back the same amount of money. Nevertheless, this does not guarantee an improvement in the team and is merely a safe option. As a result, Zidane is less likely to proceed through the summer transfer window with this plan in mind.
Madrid’s second option is to make up for the money spent on buying players by selling others. Zidane, having already determined many unnecessary players, is more likely to go with this plan of action. Making back the money through player sales not only brings in good players to strengthen the squad but also gets rid of players that are not required in the squad making this is the better and more efficient option.
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