2024-07-23 19:58:12
The Real Madrid made public this Monday the club’s accounts for the 2023-2024 fiscal year, where it reached an operating income of 1,073 million euros, making it the first club in the world to surpass the billion mark in this currency.
“Operating income for the 2023/24 fiscal year has reached 1,073 million euros, representing an increase of 230 million (27%) compared to the 2022/2023 fiscal year. In this fiscal year, despite the stadium not being fully operational, the club surpassed one billion euros in revenue before asset disposal, a figure not achieved until now by any football club,” reports Real Madrid.
The club adds that it closed the 2023/24 fiscal year with a profit after taxes of 16 million euros, which is 32% higher than the previous year (12 million). Thus, the club continues its path of profits achieved year after year since the beginning of the century, all within an economic context characterized by widespread and significant losses accumulated during the period from 2019/20 to 2022/23 by most of the relevant European clubs, losses that persist in many clubs.
“As a consequence of the profits obtained, the club has been increasing its net worth year after year, reaching a value of 574 million euros as of June 30, 2024,” it points out.
How has Real Madrid’s economic growth been?
The Real Madrid states that all lines of business have recorded growth, with the exception of broadcasting, where the revenues received from LaLiga in 2023/24 were lower than those of 2022/23.
Regarding commercial activity, during the 2023/24 fiscal year, the club significantly boosted both its ‘merchandising’ activity and sponsorship, highlighting in the latter case the signing of a new sponsorship deal with HP for the sleeve of the jersey.
Additionally, Real Madrid shares an analysis of the club’s debt and investments in the new stadium and player signings. ‘The club’s net debt, excluding the stadium remodeling project, stood at 8 million euros as of June 30, 2024.’
“During the 2023/24 fiscal year, debt increased by 55 million euros as a result of the investments made (267 million, excluding the remodeling project). Notably, these investments include the investment in players of 239 million euros and the beginning of the construction of the parking garage on Paseo de la Castellana, where 16 million euros have been invested.”
Finally, Real Madrid reports that the club’s contribution to tax revenues and Social Security in the 2023/24 fiscal year amounted to 277.1 million euros.
Future Trends in Football Finance: Insights from Real Madrid’s 2023-2024 Financial Report
Real Madrid’s recent financial disclosures showcase remarkable growth, highlighting key trends that could shape the future of football finance globally. The club reported an operating income of €1.073 billion for the 2023-2024 season, making history as the first football club to surpass the billion-euro threshold. This increase of €230 million (27%) compared to the previous year indicates not only Real Madrid’s resilience but also sets a benchmark for other clubs aiming for financial sustainability.
Commercial Growth Outpacing Traditional Revenue Streams
With traditional broadcasting revenue witnessing a decline, clubs are likely to pivot towards enhancing commercial activities. Real Madrid’s significant growth in merchandising and sponsorship deals, such as the new partnership with HP, emphasizes the importance of diversifying revenue streams beyond matchday and TV rights. Future trends suggest that innovative partnerships and strategic merchandising initiatives will become crucial for clubs looking to improve financial performance.
Investment in Infrastructure and Players
The club’s investment in player acquisitions and stadium renovations demonstrates a growing trend among elite clubs to invest heavily in their infrastructure and talent. Real Madrid’s reported debt of €8 million (excluding stadium renovations) reflects a strategy of leveraged growth through calculated investments. Other clubs may follow suit, recognizing that substantial investment in facilities and skilled players is essential for maintaining competitiveness and financial health.
Fiscal Contributions and Financial Responsibility
Real Madrid’s contribution of €277.1 million to fiscal revenues and social security highlights an increasing focus on financial accountability in the sports sector. Future trends in football finance are likely to see clubs enhancing their relationships with governments and regulatory bodies by demonstrating their economic impact. Improved transparency in finances can foster trust and lead to more favorable conditions for clubs operating within stringent financial regulations.
Impact of Global Economic Factors
The broader economic context shows a continuing struggle for many European clubs facing significant losses from 2019 to 2023. However, Real Madrid’s success amidst these challenges may serve as a model for resilience. As clubs navigate a post-pandemic landscape, trends in financial strategy will increasingly prioritize risk management and diversification to withstand economic fluctuations.