Real Madrid agree pay cuts while January transfer plans are scrapped

Daniel Feliciano
Real Madrid v Granada CF - La Liga Santander
Real Madrid v Granada CF - La Liga Santander / Denis Doyle/Getty Images

Real Madrid have agreed another pay cut with their players and executives, as the COVID-19 global pandemic continues to impact club finances and squad investment.

La Liga was halted by the coronavirus back in March 2020 and paused for three months, as Zinedine Zidane's side claimed their 34th league title.

During that break in the season, the club agreed a 10% pay cut with their team while football was paused, due to the lack of income. It was agreed that had the league not come back at all, then the cut would have been increased to 20%, although that ultimately didn't happen.

Real Madrid won La Liga after the COVID-19 break in March
Real Madrid won La Liga after the COVID-19 break in March / Quality Sport Images/Getty Images

But as we enter 2021 and fans are still not allowed back in stadiums in Spain, Real Madrid have moved to strike another agreement with their players in order to preserve the club's finances.

After not signing any players in the summer transfer window, Marca report that the club have once again agreed to a 10% pay cut with their sports teams and executives.

There are also no plans to sign anyone in the January transfer window, since the club don't see it as viable to sign players while asking current players to take a pay cut.

Los Blancos have reportedly seen their budget cut from a projected €900m for the year to just €618m due to the pandemic and lack of fans allowed to attend games.

Luka Jovic could leave the club in January
Luka Jovic could leave the club in January / Quality Sport Images/Getty Images

The club have reportedly accepted that they could allow some players to leave the club in the January transfer window due to them not being considered as needed by Zidane, which could open up the door for potential deals.

Striker Luka Jovic has been linked with a move away from the club, with former team Eintracht Frankfurt interested in bringing the Serbian back. Club manager Adi Hatter commented on a possible deal, via Goal, stating it's something the club have been keeping an eye on.

He said: “It is something that has not escaped anyone. He is getting very few minutes at Real Madrid and, surely, he would have nothing against returning to Frankfurt.”