Atltico cuts player salaries by 70% during virus crisis

Atltico Madrid says it has reached an agreement with its players and coaching staff to reduce their salaries by 70% while competitions are stopped during the coronavirus pandemic.

Atltico announced the agreement on Thursday and said it is temporarily suspending the jobs of club employees. Atltico had previously said it would need to take such a drastic step but had yet to reveal the details.

A job suspension under Spanish law allows a company to greatly reduce its labor costs by having workers stay at home while guaranteeing they will go back to their positions when conditions improve.

The Spanish club added that some of the money saved by the players' salary cuts will be given to its other employees who will be furloughed. Barcelona recently announced it had come to a similar agreement with its players.

Both clubs said that such cost-saving measures were necessary to ensure their financial stability due to the loss in revenue during the stoppage of competitions.