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Real Madrid report rebound in turnover as profits rise to €13m

September 14 – Real Madrid is reporting a €13 million profit for the financial year 2021/22 on a turnover of €722 million. The is a €69 million increase in tunover on the previous year.

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

The club estimated the loss of potential revenue due to the pandemic, between March 2020 to 30 June 2022, to be­­­­­ close to €400 million.
The club has  completed a renovation its Bernabeu Stadium which affected revenue during the works but will contribute significantly to match day and stadium revenue going forward. The club said “management has 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 money in the financial year and agreed a €360 million investment around the redevelopment of the Bernabéu with US private equity firm  Sixth Street and a further deal 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 affected by Covid-19, and despite the loss of income it has caused, EBITDA has been higher than that generated in 2018/19 before the pandemic, which is a sign of the Club’s operational efficiency, as well as its ability to respond by adopting management measures to mitigate these losses,” said the club.

The accounts were helped by the €83.2 million Champions League prize and appearance money from UEFA for their 2021/22 title win, the fifth title in the last eight years. Real Madrid also won the Spanish League title and the Spanish…

Source link : https://www.insideworldfootball.com/2022/09/14/136878/

Author : Paul Nicholson

Publish date : 2022-09-14 00:28:30

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