Real Madrid Delegate Disputes Club's Financial Claims, Says Real $734M In Total Debt
Carlos Mendoza, a Real Madrid delegate banned from speaking at the recent members' assembly, said that the club’s accounts are "not as assured" as Real Madrid President Florentino Perez claims, according to FOOTBALL ESPANA. Mendoza was "reportedly barred from publicly commenting at the recent assembly of the club’s delegate members," but shared "his view on the club’s accounts." Madrid has published figures for the last year listing "record revenue and profit levels and reporting that debt" was down by 27.4% to €90.6M ($123M), but "apparently this is inaccurate information." Mendoza, who is president of the "Asociación por los Valores del Madridismo" ("Association For Madrid's Values") members group, said, "The main thing" is that the club’s debt is €541M ($734M). Mendoza: "Which is the sum of non current liabilities, which is what is owed long term, and current liabilities, which are due short term. Florentino only recognizes the net debt, which is what is due exclusively to the banks," at about €90M ($122M). Mendoza added, "Madrid has more debts than with the banks -- they have them to players, to clubs, to sporting organizations, with governments, suppliers. All this adds up to €541M, which is more than double the debt Florentino inherited from Lorenzo Sanz. And on top of this debt, he wants to face the reconstruction of the Santiago Bernabeu," which he has valued at €400M ($542.6M) in cost. Mendoza said, "How much of the debt is manageable? Revenues are high. We are the highest grossing club in the world, but we are also the number one in spending. And look, the revenues have increased annually at 12% in the last decade, but in the last year have risen by only one percent. And spending has soared. I guess that [the reduced revenues] are due to the economic situation [in Spain]. If there is that uncertainty, engaging in this Bernabeu project for €400 million does not seem wise" (FOOTBALL ESPANA, 10/8). The EFE reported considering that in the last year, according to Mendoza, "revenue only increased 1%, while the average increase in the preceding years was 12%, the situation is concerning" (EFE, 10/8).