Real Madrid has become the first football team to generate more than €1 billion in income.
The Real Madrid Board of Directors announced this exceptional financial performance during their meeting on July 23, during which they reviewed the fiscal year 2023-2024 records.
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.
In 2023/24, €239 million was invested in player acquisitions, with another €16 million going towards a new car park. Despite these expenditures, the club’s net debt has been decreased from €241 million in 2020 to just €8 million, indicating sound financial management.
The continuing 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 revenue increases from the newly created business zones.
The club’s future objective
Looking ahead, Real Madrid hopes to maintain its commercial growth while building on its tradition of on-field success, as seen by the high-profile signing of Kylian Mbappé for the upcoming season. To ensure profitability and financial stability, the club’s strategy prioritises long-term expansion while combining income diversification with cost management.
Real Madrid’s exceptional financial success not only establishes a new standard in football, but also demonstrates the club’s strategic vision and operational brilliance. With the Santiago Bernabéu Stadium refurbishment nearing completion, the team is positioned for further commercial and sporting success.