Barcelona has its spending limit increased but remains well below Real Madrid's cap

MADRID — Real Madrid remains with the Spanish league's highest spending limit following the summer transfer window, while Barcelona improved significantly but remained well bellow its rival's cap.

The league released the cost limits for each team on Thursday, with Madrid's cap reaching nearly 755 million euros ($833 million), up from 727 million euros ($803 million).

Barcelona's limit more than doubled from 204 million euros ($225 million) after the winter transfer market to 426 million euros ($470 million), but the Catalan club could still be in a delicate situation going into the next transfer window if it doesn't make moves to improve its finances.

Atletico Madrid is the Spanish club with the third-highest spending limit at 310 million euros ($342 million), up from 303 million euros ($334 million).

Sevilla was among the teams struggling the most, with its limit being reduced from more than 150 million euros ($165 million) to only 2.5 million euros ($2.7 million).

The cost limit represents the maximum amount each club can spend on players, coaches and other staff. It also includes spending on reserves, the youth system and other areas.

Each Spanish league club has a different spending limit based on factors such as revenues, costs and debts. It is proportional to roughly 70% of a club’s revenues. Clubs that are overspending need to find ways to either reduce costs or attract new investment.