La Liga side Real Madrid has announced a record €603.9M ($782M) income for the '13-14 season, "thanks in large part to winning the Champions League for a 10th time in May," according to the AFP. Real's total revenue was up 10.9% on last season, "with the net profit slightly up" from €36.9M last year to €38.5M ($49.8M). Real also "slashed its net debt" by 21% to €71.5M ($92.5M). However, despite strengthening its position as the "richest club in world football, Real's board has come under fire for allowing key midfielders Angel di Maria and Xabi Alonso to leave in the final week of the transfer window last month" for a combined €85M ($110M). Those departures came after the club made a combined €100M ($129.4M) splurge on James Rodriguez, Toni Kroos and Keylor Navas (AFP, 9/5). FORBES' Kurt Badenhausen reported "it marks the highest recorded revenues in the history of professional team sports." Real's "closest competitor is Barcelona," which announced revenue of $710M in July. The top U.S. sports franchises by revenue are the NFL Dallas Cowboys ($560M in '13) and the MLB N.Y. Yankees ($620M before revenue sharing and stadium debt service). The Champions League win meant a payout of $78M versus the $62M Real "earned last season for its semifinal finish." The club’s commercial revenue is boosted by a $41M-a-year kit deal with adidas. Real's gameday revenue will "get a boost" from a proposed $540M stadium renovation, which is "expected to be completed" in '17 (FORBES, 9/5).
PRESIDENT DOWNPLAYS COMMENTS: REUTERS' Iain Rogers reported Real Madrid President Florentino Perez "sought to play down an apparent spat with Cristiano Ronaldo" on Friday. Ronaldo made headlines on Monday when he said that the club's "transfer dealings in the latest window would probably have been different if he had been in charge." Perez: "I have no doubt that he (Ronaldo) did not want to question the club's policies. ... There are no disagreements, zero." Perez "defended Real's decision" to sell Alonso and di Maria. Perez added, "His (Di Maria's) reason... was that he had financial demands that we could not meet. Real Madrid made him the best possible offer... but he had different financial expectations" (REUTERS, 9/5).
WORLD RECORD: In Madrid, J. I. García-Ochoa reported the $782M revenue "left marketing experts, economists and top leaders of sports clubs worlwide open-mouthed." Perez said, "For the 10th consecutive year, Real Madrid will have the highest revenue of any sports club in the world, and for the third consecutive year, Forbes considers us the most valuable club in the world." Of all the figures announced, Perez "appeared especially proud" of the club's €549.6M ($711.3M) in revenue corresponding to Real Madrid's "various lines of business:" marketing (32%), members and stadium (25%), broadcast rights (30%) and friendlies and int'l competition (13%). With "these numbers, there is no doubt that the '13-14 season is, from the economic point of view, the best in Real Madrid history." The profit before taxes rose to €48.2M ($62.4M), €38.5M after taxes, a 4.4% increase from the previous season (MARCA, 9/6).
Real Madrid '12-13, '13-14 Financials
|
|
'12-13 |
'13-14 |
Variation |
Total Revenue
|
$705M |
$782M |
+10.9% |
Revenue (Before Appreciation
From Player Trades)
|
$674M
|
$711M |
+5.5% |
EBITDA (Before Appreciation
From Player Trades)
|
$171M |
$161M |
-5.5% |
EBITDA
|
$194M
|
$213M |
+9.5% |
Net Worth (Through June 30)
|
$404M |
$496M |
+22.9% |
Net Debt (Through June 30)
|
$117M
|
$93M |
- 21% |
Debt-EBITDA Ratio
|
.06% |
.04% |
|
Debt-Net Worth Ratio
|
.03% |
.02% |
|
