LaLiga on Tuesday, announced a cut on Barcelona’s annual spending limit by a further €66million.
This is a reduction from €270m to €204m.
Real Madrid still have the highest cap in Spain’s topflight at €727m.
Atlético Madrid’s cap is also higher than Barcelona at €303m.
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.
ESPN reports that squad costs, which is what the cap regulates, are over €400m, which is more than double the LaLiga-imposed limit.
As a result, Barca 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 savings is.