Real Madrid become first football club to cross €1bn in revenue
Real Madrid has become the first football team to generate more than €1 billion in income.
The Real Madrid Board of Directors declared this unprecedented financial achievement following their July 23 meeting, during which they evaluated the yearly records for the fiscal year 2023-2024.
A statement obtained on Tuesday from the club’s website.
The release said, “Real Madrid Becomes The First Football Club To Exceed One Billion Euros in Revenue.”
On the pitch, Real Madrid’s first team had a fantastic season, winning the Champions League for the sixth time in ten years, as well as LaLiga and the Spanish Super Cup.
The basketball team also thrived, winning the League, Copa del Rey, and Spanish Super Cup while reaching the EuroLeague final.
According to the statement, these victories greatly increased the club’s earnings, despite the additional costs related with squad bonuses.
“For the fiscal year 2023/24, Real Madrid reported an operational income of €1.073 billion, a 27 percent increase over the previous year.
“This is a historic achievement for any football team, even if the Santiago Bernabéu Stadium is not yet completely functioning.
“Revenue growth was driven by increased marketing and stadium operations, despite a dip in broadcasting rights from LaLiga,” the headline stated.
Commercially, the club extended its merchandising and sponsorships, including a new sleeve sponsorship agreement with HP.
“Stadium revenues also increased as a result of expanded VIP experiences and hosting large events, paving the way for future growth after renovations are completed in 2024/25.
“Real Madrid’s operational profit before depreciation (EBITDA) was €156 million, up 71% year on year. This efficiency demonstrates the club’s competent management and operational resilience, as it maintained an average yearly EBITDA of €175 million from 2019/20 to 2023/24 despite pandemic hardships.
“The club concluded the 2023/24 financial year with a 32 per cent increase in after-tax profits, amounting to €16 million. This accomplishment is notable given the widespread financial struggles faced by many major European clubs in recent years,” it read further.
Financially, Real Madrid remains robust with a debt-to-equity ratio of 0.0, excluding the stadium renovation project. The club’s cash balance stands at €82 million, supplemented by undrawn credit facilities of €395 million, ensuring ample liquidity for future commitments.
Investment during the 2023/24 year included €239 million in player acquisitions and €16 million for a new car park. Despite these expenditures, the club has drastically reduced its net debt from €241 million in 2020 to just €8 million, demonstrating effective financial management.
The Santiago Bernabéu Stadium renovation, an ongoing project, saw a €270 million investment this year, bringing total expenditures to €1.163 billion. The project is set to complete in 2024/25, promising significant future revenue increases from the newly developed business areas.
Club’s future target
Looking ahead, Real Madrid aims to sustain its commercial growth and continue its legacy of on-field success, highlighted by the high-profile signing of Kylian Mbappé for the upcoming season. The club’s strategy focuses on sustainable growth, balancing revenue diversification with cost management to maintain profitability and financial stability.
Real Madrid’s unprecedented financial achievement not only sets a new benchmark in the football world but also underscores the club’s strategic vision and operational excellence. As the Santiago Bernabéu Stadium renovation nears completion, the club is poised for continued commercial and sporting success.