Real Madrid have made history by becoming the first football club to exceed €1 billion in revenue.
The momentous financial milestone was revealed by the Real Madrid Board of Directors during their recent meeting on Tuesday, July 23, where they examined the financial accounts for the 2023-2024 season.
In addition to this incredible financial achievement, Los Blancos experienced a successful season on the field. The football team led by Carlo Ancelotti secured their sixth Champions League title in the last ten years, as well as clinching La Liga and the Spanish Super Cup.
In addition, the basketball team also had a standout year, winning the League, Copa del Rey, and Spanish Super Cup, and reaching the EuroLeague final.
Despite incurring higher costs due to squad bonuses, the club’s revenue received a significant boost from these triumphs, reinforcing Real Madrid’s status as a powerhouse both on and off the field.
Financial report from Real Madrid
Real Madrid stated: “Operating income (before the sale of fixed assets) for the 2023/24 season reached $1.073 billion, an increase of $230 million (27%) compared to the 2022/2023 season.
“Despite the stadium not being fully operational, the club managed to exceed one billion dollars in operating income before the sale of fixed assets, a milestone no other football club has reached.”
Despite the challenging economic climate that saw many major European clubs facing losses, Real Madrid have managed to consistently generate profits since the turn of the century.
The club announced a successful financial year, closing the 2023/24 season with a net profit of $17.3 million, a 32% increase from the previous season.
The club added: “We closed the 2023/24 season with a net profit of $17.3 million, 32% higher than the previous season ($12 million).”
“The club has consistently generated profits year after year since the beginning of the century, even within an economic context characterized by widespread and significant losses among the majority of major European clubs from 2019/20 to 2022/23, with many clubs still experiencing losses in the 2023/24 season.”
“As a result of the profits obtained, the club has been increasing the value of its net assets year after year, reaching $622 million as of June 30, 2024,” it notes. Real Madrid points out that “all business lines have recorded growth, except for broadcasting, where income from La Liga in 2023/24 was lower than in 2022/23.”
With these positive results, Real Madrid continues to demonstrate its financial stability and solid management, setting itself apart from many other clubs in the industry.
Madrid sponsorship deal with HP as major source of revenue
Furthermore, Los Blancos emphasizes the significance of the new sponsorship deal with HP for the shirt sleeve as a major source of revenue.
The report notes: “Regarding commercial activities, during the 2023/24 season, the club has significantly boosted both ‘merchandising’ and sponsorship activities, particularly noting the new HP sponsorship deal for the shirt sleeve.”
In addition to discussing the commercial partnerships, the report delves into the club’s financial standing, highlighting investments in the stadium and player acquisitions. “As of June 30, 2024, the club’s net debt, excluding the stadium renovation project, amounted to $8.6 million.”
Points to note from Real Madrid financial report
Real Madrid’s financial position remains strong, with a debt-to-equity ratio of 0.0, excluding the stadium renovation project. The club holds a cash balance of €82 million and has access to €395 million in credit facilities, ensuring sufficient liquidity for future obligations.
In the 2023/24 year, Real Madrid invested €239 million in player acquisitions and €16 million in a new car park. Despite these expenses, the club have significantly reduced its net debt from €241 million in 2020 to just €8 million, showcasing effective financial management.
The ongoing Santiago Bernabéu Stadium renovation project received a €270 million investment this year, totaling €1.163 billion in expenditures. Set to be completed in 2024/25, the project is expected to bring in substantial revenue growth from the newly developed business areas.
Real Madrid’s outstanding financial success not only sets a new standard in the football industry but also reflects the club’s forward-thinking approach.
What’s next?
Real Madrid will kick off their pre-season friendlies with a match against AC Milan on August 1, followed by games against Barcelona on August 4 and Chelsea on August 7.
Afterward, they will go head-to-head with Europa League Champions Atalanta in the Super Cup final on August 14.
