What is LaLiga’s 1:1 rule, how does it impact Barcelona, and how far is the club from regaining financial stability? Here TEAMtalk provides all the answers.
Joan Laporta called it a ‘dreadful inheritance’ when he returned as Barcelona president in March 2021, blaming his predecessor – Josep Maria Bartomeu – for putting the club €1.2billion (£1bn / $1.4bn) in debt. Bartomeu oversaw excessive spending, with Ousmane Dembele, Antoine Griezmann and Philippe Coutinho all joining for over €100m (£87m / $117m) each.
All three of those big names failed to live up to expectations at the Camp Nou, while Laporta was left stunned by the contract policy that was in place. He found veteran players on long contracts and younger stars on short-term deals.
Barca chiefs worked hard to renew Lionel Messi’s contract but ultimately could not achieve this goal due to severe financial issues, which resulted in an emotional departure to Paris Saint-Germain.
Since then, Barca have used numerous economic ‘levers’ to sign new players and register them with LaLiga. There have been wage cuts, directors initiating bank guarantees and the sale of club assets.
Despite LaLiga’s strict stance, Barca have usually been able to achieve what they set out to.
The aim of LaLiga’s 1:1 rule is to stop clubs from spending beyond their means and getting into serious debt.
According to the club’s official website, LaLiga calculates a limit taking into account the club’s expected income and remaining expenses, such as non-sports salaries or management expenses. This limit is compared to already committed salaries.
If the limit is higher, the club can sign and renew players. If not, no new additions can be registered.
While inside the rules, Barca can only reinvest one euro for every euro generated through revenue streams such as player sales, commercial deals and sponsorship.
For example, Barca are due to earn €266m (£232m / $310m) over a four-year period thanks to their partnership with Spotify. This is why the stadium is now called the Spotify Camp Nou, and why global music artists such as The Rolling Stones, Drake, Ed Sheeran and Travis Scott have featured as Barca’s main shirt sponsor.
But while Barca are outside the 1:1 rule, LaLiga impose even tighter restrictions. Barca cannot utilise 100 per cent of the revenue or wage space from outgoing transfers – even in the case of loans.
Instead, Barca can only use up to 60 per cent of salary and amortisation savings for signing a new player. It is 70 per cent for so-called ‘franchise players’ – those whose salary equals or exceeds 5 per cent of the total squad wage bill.
As for revenue from player sales, the club can apply just 20 per cent towards new signings, increasing to 35 per cent for a franchise player.
Barca’s website adds that LaLiga do allow an alternative case for registering players in seasons where 1:1 cannot be met. This varies each year and has previously 1:4 or 1:3. So for every 3 euros saved Barca could spend one.
Barca state that they have three main challenges relating to the 1:1 rule: generate more income than expenses each year, maintain a positive net worth (have more assets than debts) and avoid excessive indebtedness in relation to income.
DON’T MISS👉 Barcelona eye sensational FREE signing of Bayern star as controversial Atletico Madrid exit tipped
What is Barca’s current situation?
Reports on Thursday claimed Barca are still €36m (£31m / $42m) off reaching the 1:1 rule. They are hopeful a further €30m (£26m / $35m) generated by the sale of VIP seats at the Camp Nou will get them closer to hitting their target, plus other financial measures.
But success is far from guaranteed, and if Barca remain outside of the rules then they will struggle to sign any new players in January.
Financial issues delayed the registration of Dani Olmo at the start of last season following his €60m (then £51m) capture from RB Leipzig.
Olmo missed the first two matches of the campaign before Barca finally managed to register him with LaLiga.
The saga put Nico Williams off joining Barca in the summer, as he was concerned he might miss a chunk of the season if Barca could not register him. This would have been particularly damaging given it is a World Cup year.
Williams opted to pen a remarkable new 10-year contract with Athletic Club, forcing Barca to make Marcus Rashford their new left winger instead.
Rashford has joined from Manchester United on a season-long loan that includes a €30m option for Barca to buy.
Barca are weighing up whether to extend Robert Lewandowski’s contract beyond 2026 or to let him leave on a free transfer and sign a new striker.
If they opt for the latter, then this could harm Rashford’s chances of joining permanently.
Lewandowski is on a reported €400,000 a week (£348k / $466k), so his departure would give Barca a major saving on their books.
According to various reports in Spain, Laporta dreams of signing a world-class goalscorer to replace the Polish icon, such as Atletico Madrid ace Julian Alvarez or Manchester City talisman Erling Haaland.
But those players would cost eye-watering transfer fees, which could force Barca to look into more attainable solutions.
Dusan Vlahovic could be a great addition. While the 25-year-old has high wage demands, his Juventus contract expires in June and this means he could soon be signed for free.
Vlahovic was previously offered to Man Utd, but the Italian press state that Barca are now considering opening talks for him.
TEAMtalk understands Chelsea and Tottenham Hotspur are also interested in the Serie A star.
Karl Etta Eyong could be another option. The Levante star is not as experienced as Vlahovic, but he has been lighting up Spain this season and has already notched five goals in eight appearances.
Etta Eyong could be signed for €15-30m. It emerged recently that the 22-year-old would rather join Barca than Man Utd, too.
German journalist Florian Plettenberg has reported that Hoffenheim’s Fisnik Asllani is also on Barca’s shortlist.
Barcelona news: Shock striker claim; Portuguese target
Meanwhile, Liverpool have been warned that Alexander Isak could incredibly head to Barca next year.
Barca are understood to be tracking Portugal’s latest attacking ‘gem’.
A report has explained how the deal could be affected by Rashford’s future.