re: Barca has their spending slashed (Update: AGAIN)

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Barcelona's annual spending limit has been cut by a further €66 million ($71m), reduced from €270m to €204m, LaLiga announced on Tuesday.

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After being previously cut by €400m in September, the latest limits reveal the scale of the challenge facing Barça as they attempt to become competitive in the transfer market once again.

Sources have told ESPN that squad costs -- which is what the cap regulates -- are over €400m, which is more than double the LaLiga-imposed limit.

As a result, the Catalan club are subject to financial restrictions. They are only allowed to spend a percentage of what they save in salaries or raise in transfer fees, with the percentage varying depending on how big the saving is.

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Barça's latest reduction is related to a range of factors. In part, it is due to the continued decreasing effect of the "palancas" -- assets sold off by the club in 2022 to improve their short-term finances -- which increased their limit as high as €656m at the start of the 22-23 campaign.

However, the money from one of those asset sales -- Barça Studios, which has since been rebranded as Barça Vision -- was never paid in full and led to the club re-selling it last summer to a company called Libero. That money has still not arrived.

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