La Liga<\/a> released the salary limits of all 20 clubs yesterday and, rather unsurprisingly, Real Madrid<\/a> were once again the club with the highest limit.<\/p>\n<\/div>\n Los Blancos<\/em> saw their salary cap increase to \u20ac832.8 million<\/a>, underlining the exceptionally strong financial position they continue to occupy.<\/p>\n<\/div>\n Now, as quoted by Mundo Deportivo<\/a>, La Liga<\/em> corporate director Javier Gomez explained the mechanism under which Madrid saw their salary limit increase.<\/p>\n<\/div>\n Gomez explained that the increase comes from a rule available to financially healthy clubs that meet the required economic ratios.<\/p>\n<\/div>\n \u201cIt is normal. Under the regulations, certain clubs that meet specific ratios and have healthy accounts can use savings accumulated from previous years to increase their limit,\u201d<\/strong> Gomez said.<\/p>\n<\/div>\n That explanation is important because Madrid\u2019s increased spending capacity is directly connected to the club\u2019s financial position rather than an exceptional concession from La Liga<\/em>.<\/p>\n<\/div>\n Real Madrid\u2019s high salary cap is reflective of their good accounts. (Photo courtesy: Real Madrid official website)<\/p>\n<\/div>\n \u201cThey can request an increase of up to 25% and they use it. One thing is requesting it and another is actually using it,\u201d<\/strong> he added.<\/p>\n<\/div>\n For Real Madrid, the key phrase is \u201chealthy accounts.\u201d<\/p>\n<\/div>\n La Liga<\/em>\u2019s system effectively allows qualifying clubs to make use of financial strength built up in previous seasons.<\/p>\n<\/div>\n Madrid have therefore been able to convert accumulated savings into greater flexibility within their squad cost limit.<\/p>\n<\/div>\n That does not mean the club must spend everything available to them. As Gomez stressed, being authorised to increase the limit and actually using that entire capacity are two different things.<\/p>\n<\/div>\n It nevertheless leaves Madrid with considerable room when planning contracts, renewals and future transfer windows.<\/p>\n<\/div>\n Los Blancos<\/em> made several marquee signings this summer who would definitely have arrived with significant contract demands.<\/p>\n<\/div>\n More importantly, the club committed a lot of money to the renewal of Vinicius Jr.<\/a> back in the summer.<\/p>\n<\/div>\n Real Madrid are planning contract renewals for Thibaut Courtois<\/a> and Jude Bellingham<\/a>. (Photo by Florencia Tan Jun\/Getty Images)<\/p>\n<\/div>\n Since the close of the transfer window, the club have turned their attention to renewing the contracts of their other superstars.<\/p>\n<\/div>\n It has been revealed that Madrid have effectively agreed a contract renewal<\/a> with shot-stopper Thibaut Courtois.<\/p>\n<\/div>\n
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\nLa Liga explains Madrid\u2019s increase<\/h3>\n<\/p>\n
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<\/picture><\/div>\nMadrid rewarded for healthy finances<\/h3>\n<\/p>\n
Financial strength gives Madrid options<\/h3>\n<\/p>\n
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