The record LALIGA champions, Real Madrid have become the first football team to accomplish €1 billion in revenue.
The Real Madrid Board of Directors declared this unprecedented financial success during their July 23 meeting, during which they evaluated the yearly records for the fiscal year 2023-2024.
On the field, Real Madrid’s first team had a fantastic season, winning the UEFA Champions League for the sixth time in ten years, as well as LALIGA and the Spanish Super Cup.
The basketball squad also thrived, winning the league, Copa del Rey, and Spanish Super Cup while reaching the EuroLeague final.
In accordance with the statement, these victories greatly increased Los Blancos’ earnings, despite the additional spending related to squad incentives.
“For the 2023-24 financial year, Real Madrid reported an operating income of €1.073 billion, marking a 27 per cent increase from the previous year. This is a groundbreaking achievement for any football club, even though the Santiago Bernabéu Stadium is not yet fully operational. Revenue growth was driven by increased marketing and stadium operations, despite a dip in broadcasting rights from LaLiga,” the official report said.
On a commercial level, the club broadened its sponsorship roster with a new sleeve sponsorship agreement with HP.
“Stadium revenues also surged due to new VIP experiences and hosting major events, setting the stage for further growth once renovations are complete in 2024-25. Real Madrid’s operating profit before depreciation (EBITDA) reached €156 million, reflecting a 71 per cent year-on-year increase. This efficiency underscores the club’s adept management and operational resilience, achieving an average annual EBITDA of €175 million from 2019/20 to 2023/24 despite pandemic challenges. 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.
On a financial level, Real Madrid are resilient, with a debt-to-equity ratio of 0.0 excluding the stadium rebuilding project. The club’s cash position is €82 million, with €395 million in undrawn credit facilities, assuring enough liquidity for future commitments.
In 2023-24, €239 million was invested in player signings, with another €16 million going towards a new car park. Notwithstanding these expenditures, La Casa Blanca‘s net debt has decreased from €241 million in 2020 to just €8 million, indicating sound financial management.
The Santiago Bernabéu Stadium refurbishment project received a €270 million infusion this year, raising the total cost to €1.163 billion. The project is scheduled to be completed in 2024-25, with considerable future income gains from the newly created business zones.
