Roger Hampel
Real Madrid has made history by becoming the first football club to surpass one billion euros in revenue. For the 2023/24 season, the club reported revenues of 1.073 billion euros, marking a significant 27% increase from the previous year. This achievement excludes player transfers and underscores Real Madrid's robust financial health and strategic business growth.
Financial Highlights for 2023/24
Record Revenues and Profits
Real Madrid’s revenue for the 2023/24 season reached an unprecedented 1.073 billion euros, up from 843 million euros in the 2022/23 season. This increase reflects the club's successful commercial strategies and expanding revenue streams, particularly in marketing and stadium operations. The club also posted a net profit of 16 million euros, a 32% increase from the previous year’s profit of 12 million euros.
Strong Financial Position Real Madrid One Billion Revenue
The club’s net equity as of June 30, 2024, stood at 574 million euros, showcasing its strong financial foundation. Despite significant investments and operational costs, Real Madrid maintained a net debt of only 8 million euros, reflecting a highly solvent financial status. The debt-to-equity ratio remained at a remarkable 0.0, indicating absolute financial stability.
Revenue Growth Across All Business Lines
Excluding broadcasting rights, which saw a slight decline, every line of business experienced growth. Notable increases were seen in marketing and stadium-related revenues, driven by enhanced merchandising and sponsorship deals, including a significant partnership with HP as the team’s sleeve sponsor.
Stadium Renovation and Future Prospects
The ongoing renovation of Santiago Bernabéu Stadium has been a major project for the club, with total investment reaching 1.163 billion euros. Despite the stadium not being fully operational, the club has managed to increase its stadium-related revenues. The completion of the renovation in the 2024/25 season is expected to further boost these revenues, particularly from new VIP experiences and major event hosting.
Operational Efficiency
The club achieved an EBITDA before disposal of 144 million euros, a 71% increase from the previous year. This improvement reflects enhanced operational efficiency and effective cost management. The club’s EBITDA to debt ratio of 0.1x and a debt/equity ratio of 0.0x highlight its excellent credit standing and financial health.
Sporting Success
On the pitch, Real Madrid’s football team won the Champions League, LaLiga title, and the Spanish Super Cup, while the basketball team won the League, Copa del Rey, and Spanish Super Cup, and reached the EuroLeague final. These victories have contributed to increased revenues but also higher costs, particularly in player bonuses.
Strategic Financial Management
Real Madrid's strategic approach to financial management has enabled it to offset the nearly 400 million euros in lost revenue caused by the Covid-19 pandemic. The club’s efforts in reducing debt and maintaining profitability have been exemplary, allowing it to continue investing in player acquisitions and facility improvements.
Future Outlook
The completion of the stadium renovation project in the 2024/25 season will mark a significant milestone for the club. With the new business areas fully operational, Real Madrid anticipates further growth in stadium-related revenues. The club's commercial activities are also expected to continue thriving, supported by high-profile player signings and ongoing sporting success.
Real Madrid’s commitment to sustainable growth and financial stability ensures its position as a leading football club both on and off the pitch. The club’s innovative business strategies and sound financial practices have set a new benchmark in the sports industry.
Source: Real Madrid
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