Spanish heavyweights Real Madrid has announced that even after a 9% decline in revenues to €653 million, the club has incurred a small profit of €874,000 for the 2020-21 financial year
The club has lost €300 since the pandemic struck in Spain and across Europe and all the clubs were forced to play the matches behind closed doors.
The club also decided to pull off intensive cost-saving measures worth €235m which means that the first-team squad of football and basketball team of Real Madrid agree to a 10% reduction in salary which is equivalent to €22 million. A 25% cost savings are planned across Real Madrid’s numerous club’s activities and contracted services worth €38 million and €175m in savings have been delivered in no new player acquisition.
Real’s net debt of €46m (compared with €240m for the 2019-20 financial year), a net worth of €534m and a cash balance of €122m, excluding its stadium renovation project and the club, has also paid off €50 million this year.
So far in April 2020, the club obtained financial backing from a bank worth €205m and out of which €155 million was from four loans with a courtesy period of one year.
The club has also invested €279 million in the renovation of Santiago Bernabeu Stadium which is currently going on and the team is playing its matches at the club’s B team ground. The club took a loan of €275 million for the same.
The matchday revenue is going to increase as La Liga has permitted the fans to attend the games at the stadium but the capacity has still not been disclosed. Real Madrid will play their first La Liga game against Alaves on 15th August at the Mendizorrotza Stadium.