
La Liga budget setting revolves around a strict Salary Cap (LĆmite de Coste de la Plantilla Deportiva - LCPD), calculated by subtracting a club's non-sporting expenses from its total revenue, ensuring financial sustainability and preventing overspending. Clubs propose budgets, which La Liga approves, with the limit dictating how much they can spend on player salaries and transfers; exceeding it triggers restrictions, like only reinvesting one-third of new income, though recent reforms aim for a minimum spending threshold.