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Volume 10 No. 24

Finance

Real Madrid announced record revenues for '16-17, according to Bobby McMahon of FORBES. It was a year that saw the team win La Liga, the Champions League, the Club World Cup and the European Super Cup. Full details will "be available at the start of October when the financial results are submitted" to the club's membership for approval, but the club "has already released highlights." Real Madrid's revenues cleared the $800M mark for the first time -- an "increase of nearly 9% on the previous year." Real recorded a net profit of $25M against $36M the year before. The team "also continued the trend of not carrying any net debt -- rather the net position is an asset." Although "full financial details are not yet available," the '16-17 budget can be used as a "performance benchmark." Revenues are $51M higher than budget while pre-tax profit missed the budget by $28M. Expenses "blew through the budget" and the club said in a press release, "On a financial plane, the titles have been reflected in increased revenues, but also in higher expenses; particularly relating to bonuses paid to sporting personnel, resulting in reduced liquidity." The meeting of Real Madrid members in October "will be asked to approve a revenue budget" of $821M and a net profit of $57.8M for the '17-18 season "before any profit on player sales." With the departures of Álvaro Morata to Chelsea, Danilo to Man City and a substantial loan fee for James Rodríguez to Bayern Munich already guaranteed, "it will allow the club to spend big" in the January transfer window, improve some players' contracts or "simply pocket the profit" (FORBES, 9/17).

REAL MADRID'S '15-16 AND '16-17 BUDGETS

Source: REAL MADRID

La Liga side Athletic Bilbao's board will announce a profit of €21M ($25.1M) during the '16-17 financial year at its annual meeting on Oct. 4, according to Juanma Velasco of MARCA. This is €8M ($9.6M) more than the club expected to make when it set its preseason budget. Athletic will also announce a budget for '17-18 that will include €102M ($122M) in expenses and revenue of €116M ($139M). Under club President Josu Urrutia, who has led Athletic since '11, the side has "recorded positive financial results every year" (MARCA, 9/18).