Spanish heavyweight Real Madrid has become the first soccer club to exceed €1 billion ($1.08 billion) in revenue after posting the record figure for the 2023-24 financial year.
The LaLiga side generated revenue of €1.07 billion last season, an increase of €230 million (27%) from 2022-23.
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Real Madrid enjoyed a hugely successful season last year, winning the UEFA Champions League elite club competition for the 15th time, the domestic LaLiga title, and the Spanish Super Cup.
The club posted a profit of €15.6 million, up 32% from €11.8 million in the previous year.
Madrid saw growth across all business segments, except broadcasting rights, where revenues received from LaLiga in 2023-24 were lower than in the 2022-23 season.
From a commercial perspective, the club said it “significantly boosted” its merchandising and sponsorship activities during the year.
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By GlobalDataThe most lucrative deal was with computer hardware firm HP, which became the team's first-ever sleeve sponsor.
The deal is understood to be worth as much as €70 million per season.
Last season, Madrid largely completed its renovation of the Santiago Bernabeu stadium. The club invested a total of €1.16 billion into the project and took out a loan of €1.15 billion to fund it.
The team stated that despite the business elements related to the remodel not being fully complete, there was a “progressive” increase in terms of capacity and commercial operations over the course of the year.
This saw the initiation of new business areas in the latter part of the financial cycle, in particular hosting major events and a new premium offering with new VIP experiences.
This resulted in a significant increase in stadium-related revenues, although the figures won't be shared until the 2024-25 financial year when the stadium becomes fully operational in every business area.
Revenues from international competitions also grew following the Champions League triumph, compared to a semi-final exit in 2022-23.
The club's net debt, excluding the stadium renovation project, stands at €8 million.
Debt increased by €55 million during the 2023-24 financial year, due to investments made (€267 million excluding the renovation project).
Madrid has, however, significantly reduced its debt after it increased to €241 million following the outbreak of the Covid-19 pandemic in 2020.
The club has pointed to saving measures and other business improvements in offsetting nearly €400 million in lost revenue caused by the pandemic.
The Santiago Bernabeu renovation, which began in 2020, will be completed in the 2024-25 financial year, with Madrid forecasting further significant growth in stadium-related revenues once the stadium becomes fully operational across all business lines, albeit with a rise in operating costs.
Meanwhile, Spain's Administrative Sports Court (TAD) has opened legal proceedings against LaLiga president Javier Tebas following a complaint lodged by Real Madrid regarding the league’s commercial deal with CVC.
Spain’s top-flight launched the ‘Boost LaLiga’ project in 2021 as part of a strategic partnership with the private equity group in which the two parties created a new commercial entity to manage the league’s commercial rights.
Most clubs across the top-tier LaLiga and second-tier Segunda Division voted in favor of the €1.9 billion investment deal in 2021.
However, Real Madrid was one of several clubs opposed to the deal alongside Athletic Club and Barcelona, with the trio subsequently suing LaLiga and branding the deal as “illegal”.
In February, a Madrid court dismissed that lawsuit, but Madrid has now succeeded in opening a case with the TAD.
Madrid filed a complaint against Tebas to the TAD as the club considered LaLiga discriminated against it during the negotiations with CVC over TV rights.
The team reportedly accused Tebas of abuse of his powers and for lack of transparency in calling and managing the assembly on August 12, 2021, when the agreement with CVC was discussed.
Tebas was reportedly required to give clubs 10 days' notice before an assembly and according to the complaint, he only gave eight.
The TAD considers there is evidence that Tebas carried out very serious infractions without giving the clubs 10 days' notice.
Last week, the TAD suspended Pedro Rocha as the president of the Spanish soccer federation for two years due to a serious infraction relating to abuse of power while he was interim president.
