Real Madrid has made history by becoming the first football club to surpass €1 billion in revenue. The milestone was announced following their meeting, where they reviewed the annual accounts for the 2023/2024 financial year.
A statement from Real Madrid’s website revealed that the club generated €1.073 billion ($1.16 billion) in revenue, excluding player transfers, a 27% increase from the previous year despite ongoing renovations at the Santiago Bernabéu Stadium. The club also reported a profit of €16 million ($17.3 million) for the fiscal year, with a net worth of €574 million ($623 million) and a net debt of just €8 million ($8.6 million) as of June 30, 2024.
“For the 2023/24 financial year, Real Madrid reported an operating income of €1.073 billion, marking a 27% increase from the previous year. This is a groundbreaking achievement for any football club, even though the Santiago Bernabéu Stadium is not fully operational. Revenue growth was driven by increased marketing and stadium operations, despite a dip in broadcasting rights from La Liga,” the statement reads.
Real Madrid also enjoyed substantial success on the field in the previous campaign, securing the Champions League title, their sixth in a decade along with La Liga and the Super Cup. The basketball team also excelled, capturing the Spanish league title, King’s Cup, and Spanish Super Cup while reaching the Euroleague finals.
Operating income surged by €230 million ($249 million) compared to the 2022-23 season. The club attributed the revenue increase to growth across various business lines, particularly in marketing and stadium-related income. While broadcasting revenues from La Liga saw a decline, marketing efforts and sponsorship deals, such as the new HP shirt sleeve sponsorship, bolstered the club’s financial performance.
The club’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged to €144 million ($156 million), a 71% increase from the previous year. This represents 13% of total revenues, up from 10% previously. When including player disposals, the EBITDA for the 2023-24 year is €156 million ($169 million), comparable to the €158 million ($171 million) reported for the 2022-23 financial year.
The Santiago Bernabéu Stadium renovation continues to advance, with a total investment of €1.163 billion ($1.262 billion). The final phase of the project, including the completion of the VIP area, events spaces, and other commercial ventures, is anticipated to be completed in the 2024/25 financial year. This is expected to drive further revenue growth.
During the 2023/24 financial year, the football club significantly enhanced merchandising and sponsorship activities, highlighted by a new sleeve sponsorship deal with HP. Stadium revenues also surged due to new VIP experiences and hosting major events, setting the stage for further growth once renovations are complete in 2024/25.
“The club concluded the 2023/24 financial year with a 32% increase in after-tax profits, amounting to €16 million. This accomplishment is notable given the widespread financial struggles faced by many major European clubs in recent years,” the statement reads further.
Real Madrid plans to build on their commercial success in the upcoming season, which will see the introduction of Kylian Mbappe to the squad, who joined on a free transfer after his contract at Paris Saint-Germain expired earlier this year.
The club expect this commercial boost to continue and grow even stronger in the 2024/25 financial year, supported by the image-related benefits derived from the composition of the playing squad and sporting success, as well as the renovated stadium.
