Barcelona's spending cap reduced after Champions League exit

Barcelona's spending cap has been reduced by the Spanish league because of its elimination in the Champions League.

The Spanish league said on Monday it set the club's limit for the season at €648 million ($692 million), down from €656 million ($700 million).

Barcelona's cap remained relatively high thanks to the financial maneuvers it did to restructure its debts, though the league said the club will need to slash about €200 million ahead of next season, which could be done either by reducing costs within the squad or attracting new investment.

Atletico Madrid and Sevilla also had their caps reduced because of their exits in the Champions League. Atletico's was at €315 million and Sevilla's at €191 million.

Barcelona, a five-time Champions League winner, were eliminated in the group stage for the second straight season.

Real Madrid remained the club with the highest spending cap in the league at €683 million, unchanged from last season.

The lowest cap was Elche's at €42 million.

Each Spanish league club has a different salary cap based on factors such as revenues, costs and debts. It is proportional to roughly 70 per cent of a club's revenues.