Real Madrid has made history by becoming the first football club to surpass €1 billion in revenue.
This remarkable feat was revealed after a meeting of the Real Madrid Board of Directors on July 23, where they evaluated the annual financial accounts for the 2023-2024 fiscal year.
According to a press release from the club, titled “Real Madrid Becomes The First Football Club To Exceed One Billion Euros in Revenue,” this financial milestone showcases the club’s resilience and growth.
On the field, Real Madrid’s first team had an outstanding season, capturing the Champions League title for the sixth time in the last decade, along with victories in LaLiga and the Spanish Super Cup.
The basketball team also excelled, winning the League, Copa del Rey, and Spanish Super Cup, and reaching the EuroLeague final.
These sporting successes significantly contributed to the club’s revenue increase, even with the higher costs linked to player bonuses.
For the 2023/24 financial year, Real Madrid reported operating income of €1.073 billion, reflecting a 27% growth compared to the previous year.
This is a groundbreaking accomplishment for any football club, especially before the full operation of the Santiago Bernabéu Stadium.
The revenue growth was fueled by enhanced marketing efforts and stadium operations, although there was a decline in LaLiga broadcasting rights.
The club has expanded its merchandising and sponsorship initiatives, notably through a new sleeve sponsorship arrangement.
Stadium revenues increased significantly thanks to new VIP experiences and hosting major events, laying the groundwork for further growth post-renovation in 2024/25.
Real Madrid’s operating profit before depreciation (EBITDA) reached €156 million, marking a 71% increase year-on-year. This efficiency highlights the club’s strong management and operational resilience, averaging €175 million EBITDA annually from 2019/20 to 2023/24 despite challenges posed by the pandemic.
The club concluded the 2023/24 financial year with a 32% rise in after-tax profits, totaling €16 million. This achievement is particularly remarkable given the financial difficulties facing many major European clubs recently.
Financially, Real Madrid remains robust with a zero debt-to-equity ratio, excluding the stadium renovation project. The club also reports a cash balance of €82 million, backed by undrawn credit facilities of €395 million, ensuring ample liquidity for future projects.
Investments during the 2023/24 year included €239 million for player acquisitions and €16 million for a new parking facility. Despite these outlays, the club significantly reduced its net debt from €241 million in 2020 to just €8 million, illustrating effective financial stewardship.
The ongoing renovation of the Santiago Bernabéu Stadium saw an investment of €270 million this year, bringing total project expenditures to €1.163 billion. Completion is anticipated in 2024/25, promising substantial revenue growth from newly developed business areas.
Future Aspirations
Looking forward, Real Madrid is committed to maintaining its commercial momentum and continuing its legacy of on-field success, including the high-profile signing of Kylian Mbappé for the upcoming season. The club’s strategy emphasizes sustainable growth, balancing revenue diversification with cost management to uphold profitability and financial health.
This historic financial milestone not only sets a new standard in the football industry but also highlights the club’s strategic vision and excellence in operations. As the renovation project at the Santiago Bernabéu Stadium progresses, Real Madrid is poised for ongoing commercial and sporting success.
