La Liga chief deals transfer blow to Barcelona, Real Madrid

La Liga president Javier Tebas has said that Spain's top flight will 'establish financial limits' for next season due to the financial impact of the coronavirus outbreak.

Both Barcelona and Real Madrid were expected to be busy during this summer's transfer window before the worldwide pandemic brought the majority of football across the globe to a halt.

The Spanish pair are still being continually linked with potential new signings, although Tebas has dealt a blow to both clubs by insisting that 'transfers that exceed financial limited will not be allowed".

"We have seen the cash flows for each club and right now they have squads which exceed the [financial] limits we will establish for next season," Tebas told the Instituto Iberoamericano de Derecho Deportivo.

"That brings consequences. Clubs are going to have to look at their academies and come up with a strategy to reduce salaries. There's no other solution. Transfers that exceed financial limits will not be allowed - impossible."

Barca continue to be linked with Inter Milan forward Lautaro Martinez, but the Argentina international has a €111m (£97.2m) release clause in his current deal at San Siro.