Real Madrid become first football club to surpass €1bn in revenue

Real Madrid have become the first football club to surpass €1 billion in revenue.

This historic financial achievement was announced by the Real Madrid Board of Directors following their meeting on July 23, where they reviewed the annual accounts for the 2023-2024 financial year.

A Tuesday statement obtained from the club’s website by PUNCH Online revealed this.

The statement was titled, “Real Madrid Becomes The First Football Club To Exceed One Billion Euros in Revenue.”

On the pitch, Real Madrid’s football first team enjoyed a stellar season, securing the Champions League for the sixth time in the last decade, along with winning LaLiga and the Spanish Super Cup.

The basketball team also shone, clinching the League, Copa del Rey, and Spanish Super Cup, while making it to the EuroLeague final.

According to the statement, these triumphs significantly boosted the club’s revenue, despite the associated higher costs from squad bonuses.

“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,” it read.

Commercially, the club expanded its merchandising and sponsorships, highlighted by a new sleeve sponsorship deal 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.

Financially, Real Madrid remain 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.

Investment during the 2023/24 year included €239 million in player acquisitions and €16 million for a new car park. Despite these expenditures, the club has drastically reduced its net debt from €241 million in 2020 to just €8 million, demonstrating effective financial management.

The Santiago Bernabéu Stadium renovation, an ongoing project, saw a €270 million investment this year, bringing total expenditures to €1.163 billion. The project is set to complete in 2024/25, promising significant future revenue increases from the newly developed business areas.

Club’s future target

Looking ahead, Real Madrid aims to sustain its commercial growth and continue its legacy of on-field success, highlighted by the high-profile signing of Kylian Mbappé for the upcoming season. The club’s strategy focuses on sustainable growth, balancing revenue diversification with cost management to maintain profitability and financial stability.

Real Madrid’s unprecedented financial achievement not only sets a new benchmark in the football world but also underscores the club’s strategic vision and operational excellence. As the Santiago Bernabéu Stadium renovation nears completion, the club is poised for continued commercial and sporting success.