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REAL MADRID

Real Madrid to announce €874,000 budget surplus

Real Madrid members will vote on the club's accounts for the 2020-21 season and budget for this season, which is estimated to be 695 million euros.

Update:
Real Madrid to announce €874,000 budget surplus
PEPE ANDRESDIARIO AS

Today, Real Madrid hold their Ordinary General Assembly which will be followed by an Extraordinary Assembly during which the board will request club members to authorise increasing credit for the remodelling of the Santiago Bernabéu stadium. The 1,955 members who are eligible to vote can do so either online or in person at the basketball arena in the club's training complex in Valdebebas.

President Florentino Pérez will give a report detailing the club's finances as the first order of the day. It will be the first time that the president has informed members about the club's accounts since his reelection (to 2025) in April.

The economic issues to be dealt with at the Assembly will focus on points 2 and 3. Members will vote to "examine and approval, where appropriate, the budget settlement, the annual report, the balance sheet and the profit and loss account pertaining to the 2020/2021 financial year which was drafted by the board on 14 July. For the second year running, Madrid managed to ride out the financial impact of the pandemic. In comparison to the general panorama of losses which European clubs suffered (up to 8,7 billion euros, according to UEFA's estimation), Madrid closed the fiscal year in the black, with a budget surplus of 874,000 euros, during a season when income rose to 653 million euros. The board will explain where the club has managed to make savings to keep the club economically healthy and will present a budget of 695 million euros for the 2021-22 season. The fourth point concerns proposed new membership fees for 2022-23, before members will get the chance to put forward their questions.

Additional costs to remodel the Bernabéu

Later on Saturday, during the Extraordinary Assembly, the main point of the day will concern the work to upgrade the Bernabéu. The club will ask members to authorise the board of directors to increase the debt to finance remodelling work by 200 million euros. Extra costs are destined to parts of the project which were not previously envisaged.

Last year, Real Madrid's income dropped by 8% compared to the previous year (the club recorded 714.9 M euros in revenue in 2019-20). Madrid are one of the few European clubs which didn't suffer losses during the past two financial years, calculating that they have lost around 300 million euros because of the pandemic.

Savings since the start of pandemic rose to 295 million euros - 58 million of that came from reducing the wages bill of the football and basketball sections as well as the salaries of all high level executives, 62 million was saved by reducing operative costs and 175 million from selling players.

The Treasury balance as of 30 June, stood at 122.1 million euros, Real Madrid's net worth was calculated at 533.7 million euros and the net debt at 46.6 million. The amount destined to remodelling the stadium rose by 279.2 million euros, 48.6% of the total, 575 million euros payable over 30 years.

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