Real Madrid is the first football club to surpass €1 billion in revenue

Real Madrid Releases Financial Report for the 2023-24 Season: First Football Club to Exceed €1 Billion in Revenue (Excluding Transfers)

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Revenue Without Transfers Reaches €1.07 Billion, Making Real Madrid the First Football Club to Exceed €1 Billion in Revenue Without Transfers

JayStones, July 24, 2024, 01:52 Beijing Time

In the early hours of July 24, Real Madrid officially released their financial report for the 2023-24 season, announcing that their revenue (excluding player transfers) reached €1.073 billion, making them the first football club in history to surpass €1 billion in revenue. According to the announcement, Real Madrid's revenue (excluding player transfers) for the 2023-24 season reached €1.073 billion, a 27% increase from the previous year, making them the first football club to achieve this milestone.

In the 2023-24 fiscal year, Real Madrid earned a profit of €16 million, with the club's assets remaining strong, showing a net asset value of €574 million.

Sports Achievements:

- The men's first team won the UEFA Champions League, marking their sixth Champions League title from 2014 to 2024. They also won the La Liga and the Spanish Super Cup.
- The basketball first team won the Spanish League, the Copa del Rey, and the Spanish Super Cup, and were runners-up in the EuroLeague.

All these achievements brought in more revenue but also led to higher expenditures, especially in player bonuses.

The operating revenue for the 2023-24 fiscal year (excluding fixed asset disposal) reached €1.073 billion, an increase of €230 million (27%) from the 2022-23 fiscal year. Despite the Santiago Bernabéu Stadium not being fully operational during this fiscal year, the club still achieved over €1 billion in operating revenue (excluding fixed asset disposal), a figure unprecedented for any football club to date.

Revenue Growth:

Apart from broadcasting revenue, all business lines saw growth. The La Liga broadcasting revenue for the 2023-24 fiscal year was lower than in the 2022-23 fiscal year, but significant increases were noted in marketing and stadium revenue.

Commercial Activities:

During the 2023-24 season, the club significantly promoted merchandise sales and sponsorship activities. Notably, they signed a new sponsorship deal with HP as the sleeve sponsor on their jerseys.

Santiago Bernabéu Stadium:

Although the commercial development of the stadium renovation project was not fully completed, the stadium's capacity and commercial utilization gradually increased throughout the season. In the final stages of the season, new commercial products, especially for large events and high-end products related to new VIP seats, were introduced. All these factors significantly boosted stadium-related revenue. However, full operations will not commence until the 2024-25 season.

International Match Revenue:

Winning the Champions League also increased international match revenue.

Outlook:

Looking ahead to the 2024-25 season, the completion of the stadium renovation project is the most crucial aspect. During the 2023-24 season, various structural components (such as the façade, roof, and retractable pitch) were gradually completed, along with some business development-related work (such as VIP areas, tours, events, dining, and stores). These efforts will be completed in the 2024-25 season, thus finalizing the renovation project. Consequently, accounting amortization for this investment will begin next season, and financial expenses will no longer be capitalized. The completion of the project will significantly impact stadium revenue. Although revenue increased in the 2023-24 season, the full operation of all stadium businesses in the 2024-25 season will bring about significant additional revenue growth, accompanied by corresponding increases in operating expenses related to stadium operations.

Further Commercial Activities:

The club expects the commercial push to continue and strengthen in the 2024-25 season, boosted by the team's roster, sports achievements, and the enhanced image brought about by the renovated stadium.

Sports Planning:

The club plans to continue strengthening and developing its sports model to achieve further success in football and basketball, which have been particularly significant in recent years. Notably, Kylian Mbappé will join the men's first team starting from the 2024-25 season.

All these developments require an economic model that pursues sustainable growth through a combined effort of revenue growth/diversification and cost control, ensuring profitability and financial stability, enabling the club to make necessary investments to grow its business.

Anticipated Developments:

Regarding the upcoming 2024-25 season, the main aspect is the completion of the stadium renovation project. During the 2023-24 season, various structural components of the Bernabéu renovation project (such as the façade, roof, and retractable pitch) have gradually been completed. Additionally, work related to business development (such as VIP areas, tours, events, dining, and stores) has also progressed and will be completed in the 2024-25 season, thus finalizing the renovation project. Consequently, in the next season, accounting amortization for this investment will begin, and financial expenses will no longer be capitalized. The completion of the project will have a corresponding impact on stadium revenue. Although revenue already increased in the 2023-24 season, when all stadium businesses are fully operational in the 2024-25 season, this will bring about significant additional revenue growth. Naturally, the increase in revenue will also be accompanied by a corresponding increase in operating expenses related to stadium operations.

In terms of commercial activities, the club significantly promoted merchandise sales and sponsorship activities during the 2023-24 season. The club expects this commercial push to continue and strengthen in the 2024-25 season, thanks to the enhanced image brought about by the team's roster, sports achievements, and the renovated stadium.

In the sports domain, the club plans to continue strengthening and developing its sports model to achieve further success in football and basketball, achievements that have been particularly significant in the club’s history, especially in recent years. Most importantly, from the 2024-25 season onwards, Kylian Mbappé will join the men's first team.

All these developments require an economic model that pursues sustainable growth. Through a combined effort of revenue growth/diversification and cost control, the club aims to achieve profitability and financial stability, enabling it to make necessary investments to grow its business.