Real Madrid has made history by becoming the first football club to exceed one billion euros in revenue. For the 2023/24 season, the club achieved an impressive €1.073 billion in operating income, marking a 27% increase from the previous year.
This milestone highlights the club’s remarkable financial growth and strategic management, setting a new benchmark in the world of football.
Real Madrid Sets New Record: Financial Overview and Profitability
The club’s financial performance for the 2023/24 year reflects a solid profit of €16 million. Despite substantial investments and the impact of higher expenses, including bonuses for sports staff, Real Madrid has managed to maintain a robust financial position. The club’s net worth stands at €574 million, showcasing its enduring financial stability.
Revenue Streams and Growth
Real Madrid’s revenue surge is attributed to significant growth across various business lines. Notably, marketing and stadium-related income have seen considerable increases. The club’s strategic initiatives, such as enhancing merchandising and securing new sponsorship deals—including a high-profile agreement with HP—have contributed to this success.
While broadcasting revenue experienced a decline due to lower income from the League, other areas have compensated for this shortfall. The club’s proactive approach to commercial activities and stadium utilization, including the launch of new VIP seats and premium products, has been instrumental in driving up income from stadium operations.
Financial And Economic Summary 2023/24 (excluding stadium remodeling project)
| Metric | 2022/23 | 2023/24 |
|---|---|---|
| Income (excluding disposal of assets) | 843.0 | 1,073.2 |
| EBITDA before disposal | 84.1 | 143.6 |
| EBITDA | 157.6 | 156.3 |
| Result after taxes | 11.8 | 15.6 |
| Net worth as of June 30 | 558.1 | 574.1 |
| Treasury as of June 30 | 128.2 | 82.0 |
| Net debt as of June 30 | -46.8 | 8.5 |
| Debt/EBITDA ratio | 0.0x | 0.1x |
| Debt/equity ratio | 0.0x | 0.0x |
Stadium Renovation Project (Million Euros)
| Metric | 2022/23 | 2023/24 |
|---|---|---|
| Accumulated investment | 892.7 | 1,162.6 |
| Loan arranged | 800.0 | 1,154.6 |
Operational Efficiency and EBITDA
The club’s operating result before disposal and amortization (EBITDA) reached €144 million, a 71% increase from the previous year. This improvement in operational efficiency is reflected in an EBITDA percentage of 13%, surpassing last year’s 10%. Including the results from player disposals, the total EBITDA stands at €156 million. This demonstrates Real Madrid’s ability to enhance its revenue while effectively managing expenses.
Debt Management and Financial Health
Real Madrid’s debt management is a key factor in its financial success. As of June 30, 2024, the club’s net debt, excluding stadium remodelling costs, is a minimal €8 million. The debt/equity ratio of 0.0 signifies the club’s maximum solvency and financial autonomy. Despite an increase in debt due to significant investments, including €239 million on player acquisitions and €16 million on the Paseo de la Castellana car park, Real Madrid remains in a strong financial position.
Stadium Remodeling and Future Prospects
The ongoing remodelling of the Santiago Bernabéu stadium is set to further boost the club’s revenue. Although the full commercial potential of the stadium will not be realized until the 2024/25 season, the progressive enhancements have already started to yield increased income.
The final phase of the remodelling, expected to complete in the 2024/25 fiscal year, will include new VIP areas, event spaces, and improved commercial facilities, promising additional revenue growth.
Commercial Expansion and Future Expectations
In addition to stadium improvements, Real Madrid’s commercial strategy has been pivotal in its financial success. The club’s merchandising and sponsorship activities have shown significant growth, with expectations for continued expansion in the upcoming year. The anticipated arrival of Kylian Mbappé in the 2024/25 season is expected to further boost the club’s commercial and sporting profile.
Real Madrid’s achievement of surpassing one billion euros in revenue is a testament to its effective financial management and strategic vision. The club’s ability to generate substantial income while maintaining profitability and managing debt reflects its robust financial health. As the stadium remodelling nears completion and commercial activities continue to expand, Real Madrid is well-positioned for sustained success both on and off the pitch.
What is Real Madrid’s revenue?
For the 2023/24 season, the club achieved an impressive €1.073 billion in operating income, marking a 27% increase from the previous year.
