Real Madrid has become the first football team to generate more than €1 billion in income.
The Real Madrid Board of Directors declared this unprecedented financial achievement following their July 23 meeting, during which they evaluated the yearly records for the fiscal year 2023-2024.
The release said, “Real Madrid Becomes The First Football Club To Exceed One Billion Euros in Revenue.”
On the pitch, Real Madrid’s first team had a fantastic season, winning the Champions League for the sixth time in ten years, as well as La Liga and the Spanish Super Cup.
The basketball team also thrived, winning the League, Copa del Rey, and Spanish Super Cup while reaching the EuroLeague final.
According to the statement, these victories greatly increased the club’s earnings, despite the additional costs related to squad bonuses.
"For the fiscal year 2023/24, Real Madrid reported an operational income of €1.073 billion, a 27 per cent increase over the previous year.
"This is a historic achievement for any football team, even if the Santiago Bernabéu Stadium is not yet completely functioning.
“Revenue growth was driven by expanded marketing and stadium operations, despite a decrease in LaLiga TV rights,” it stated.
Commercially, the club extended its merchandising and sponsorships, including a new sleeve sponsorship agreement with HP.
"Stadium revenues also increased as a result of expanded VIP experiences and hosting large events, paving the way for future growth after renovations are completed in 2024/25.
"Real Madrid’s operational profit before depreciation (EBITDA) was €156 million, up 71% year on year. This efficiency demonstrates the club’s competent management and operational resilience, as it maintained an average yearly EBITDA of €175 million from 2019/20 to 2023/24 despite pandemic hardships.
“The club ended the fiscal year 2023/24 with a 32% increase in after-tax profits of €16 million.” This performance is noteworthy given the widespread financial difficulties that several prominent European clubs have suffered in recent years," it continued.
Financially, Real Madrid is strong, with a debt-to-equity ratio of 0.0 excluding the stadium rebuilding project. The club’s cash balance is €82 million, with €395 million in undrawn credit facilities, assuring enough liquidity for future commitments.
In 2023/24, investments included €239 million in player additions and €16 million in a new car park. Despite these expenses, the club has decreased its net debt from €241 million in 2020 to a mere €8 million, exhibiting outstanding financial management.
The continuing Santiago Bernabéu Stadium refurbishment project received a €270 million infusion this year, raising the total cost to €1.163 billion. The project is scheduled to be completed in 2024/25, with considerable future revenue increases from the newly created business zones.
Looking ahead, Real Madrid hopes to maintain its commercial growth while building on its tradition of on-field success, as seen by the high-profile signing of Kylian Mbappé for the upcoming season. To ensure profitability and financial stability, the club’s strategy prioritizes long-term expansion while balancing income diversification with cost management.
Real Madrid’s exceptional financial success not only establishes a new standard in football but also demonstrates the club’s strategic vision and operational brilliance. As the Santiago Bernabéu Stadium redevelopment nears completion, the team is on track for ongoing commercial and sporting success.