Real Madrid has achieved a record revenue of €1.221 billion in the past financial year, excluding income from player transfers, as revealed during the club’s board meeting on Tuesday.
The Merengues emphasized that these results highlight their financial robustness and solidify their position as a global powerhouse within the sports sector.
Revenue Hits an All-Time High
Real Madrid’s annual revenue grew by 3.1% compared to the previous year, marking the first time the club has surpassed the €1.2 billion threshold.
The club claims that no other sports organization has previously reached such a significant annual revenue figure.
Real Madrid is in an excellent financial position. (Photo by Catherine Ivill/Getty Images)
This growth is primarily attributed to business initiatives operated directly by the club. Revenue from the stadium has increased by 11%, and marketing income has risen by 6% due to the renewal of major sponsorship deals and the inclusion of new commercial partners.
Sustained Financial Growth
Real Madrid reported that total revenue has surged by 61% over the past seven years, with earnings from the Santiago Bernabeu doubling within the same timeframe.
The club achieved earnings before amortization of €287.4 million, an 18% increase from the prior financial year.
Net profit after tax reached €26.3 million, marking 26 consecutive years of profitability for Real Madrid.
Investment in Stadium and Squad
The board also confirmed that investments in the Santiago Bernabeu redevelopment have accumulated to €1.407 billion.
Reporting record-breaking revenue. (Photo by Florencia Tan Jun/Getty Images)
Meanwhile, first-team squad spending has escalated by €166 million over the last seven years, reflecting a 37% increase.
In the past season alone, Real Madrid invested €161 million in new players.
The club’s net assets stand at €624 million, with cash reserves of €83 million and net debt of only €9 million, excluding stadium redevelopment-related debt.
Additionally, Real Madrid has access to €475 million in unused credit facilities.
Strong Finances Enhance Transfer Strategy
These figures illustrate Real Madrid’s long-term financial and sporting strategy, providing them with the ability to enhance their squad while adhering to self-imposed financial constraints.
This strategy has already allowed Los Blancos to make four signings this summer, with Yan Diomande anticipated to join shortly.