Six clubs in Algeria's Ligue 1 Mobilis have reportedly exceeded the salary cap set by the Algerian Football Federation (FAF) for the current season. According to estimates, these clubs have allocated a total of 910 billion centimes, or 9.1 billion dinars, to player salaries alone. This has reignited the debate on the effectiveness of the FAF's regulations, which allow for certain exceptions.
CR Belouizdad is leading the pack with a massive 220 billion centimes dedicated to player salaries, more than four times the 50 billion centime cap. USM Alger follows closely with 190 billion centimes, while JS Kabylie and MC Alger have allocated 150 billion and 130 billion centimes, respectively. MC Oran and CS Constantine each have 110 billion centimes dedicated to player salaries.
The FAF introduced the salary cap in 2024, aiming to regulate club spending. The current regulations include a 2.5 million dinar monthly cap on individual player salaries and a 500 million dinar annual cap on total club salaries. However, clubs can exceed this cap if they provide a bank guarantee and written commitment from their owners or associates.
The issue of excessive spending is not new, with six clubs already exceeding the cap in the previous season. The FAF had imposed sanctions, including fines and a deposit, on the offending clubs. Despite this, the trend continues, with estimates suggesting that the six clubs in question will cumulatively spend around 910 billion centimes on player salaries this season.
The high salaries have raised concerns, particularly given that the clubs in question are largely funded by public enterprises. Madar Holding, Serport, Mobilis, Sonatrach, Hyproc, and ENTP are among the major stakeholders in these clubs. The Algerian government had expressed its intention to curb excessive spending, but the latest figures suggest that this goal remains elusive.
The FAF's efforts to regulate club spending are complicated by the fact that many clubs are owned by public entities. The federation has confirmed that 27 clubs, including seven in Ligue 1, are banned from recruitment due to unpaid salaries to players and coaches. The issue is likely to remain a contentious one, with implications for the financial sustainability of Algerian football.
As the new season approaches, the FAF will need to revisit its regulations and enforcement mechanisms to address the issue of excessive spending. The federation's Bureau fédéral has outlined a roadmap for the upcoming season, including licensing requirements and measures to address unpaid salaries. However, it remains to be seen whether these measures will be sufficient to curb the trend of excessive spending in Algerian football.
Key points
- CR Belouizdad has exceeded the FAF's salary cap by 220 billion centimes.
- Six Algerian football clubs have exceeded the FAF's salary cap of 50 billion centimes.
- The clubs in question are largely funded by public enterprises, raising concerns about financial sustainability.