Real Madrid report revenue rebound as profit hits 13m euros

September 14 – Real Madrid announce a profit of 13 million euros for the 2021/22 financial year on a turnover of 722 million euros. This is an increase of 69 million euros in turnover compared to the previous year.

The club said the financial performance showed 'the economic effects of the pandemic are gradually easing', but warned they were 'still persistent, which is why the turnover for this financial year 2021 /22 is still lower than it was four years ago in 2017/18 and is -100 million euros lower than the 2019/20 budget before the pandemic.”

The club has estimated the loss of potential revenue due to the pandemic, between March 2020 and June 30, 2022, at almost 400 million euros. The club have completed a refurbishment of their Bernabeu stadium which has affected revenue during the works but will contribute significantly to matchday and stadium revenue going forward. The club said that "management continued to focus on cost containment and on actions to improve management and business development in all areas".

Real Madrid turned to the private investment community to raise funds during the financial year and agreed a €360m investment around the Bernabéu redevelopment with the capital firm. American investment Sixth Street and another agreement with Legends.

The club generated an EBITDA of €203 million in 2021/22 (€180 million in 2020/21 and €177 million in 2019/20).

"As a result, over the three financial years impacted by Covid-19, and despite the shortfall it generated, EBITDA was higher than that generated in 2018/19 before the pandemic, which is a sign of the operational efficiency of the club, as well as its ability to react by adopting management measures to mitigate these losses,” the club said.

Accounts were helped by the €83.2m Champions League prize money and UEFA appearance money for their 2021/22 title win, the fifth title in recent years. last eight years. Real Madrid also won the Spanish league title and the Spanish Super Cup.

The club pointed out that the profit of €13 million is "made after deduction of depreciation, financial result and corporate tax expense. This result means that the Club has managed to remain profitable on the three financial years affected by the pandemic, making a profit in both 2019/20 (€313k after tax) and 2020/21 (€874,000 after tax), being one of the few major European clubs that have not suffered no losses during these two fiscal years."

Which of course begs the question of why they think they need the European Super League.

Real Madrid's contribution to fiscal and social revenue in Spain amounted to 351.2 million euros.

For 2023/23, the club expects a turnover of 769.6 million euros and a pre-tax profit of 5 million euros. This budget is up by €48.1 million (7%) compared to the 2021/22 financial year. - 2019/20 pandemic budget of €822.1 million