Real Madrid announce £11m profit last year despite lasting effects of Covid
Real Madrid have announced they made an £11million (€13m) profit in the previous financial year despite the ongoing financial effects of Covid in La Liga.
The news comes after club president Florentino Perez held a meeting with club shareholders to update them on the financial picture at the Santiago Bernabeu.
A statement released on the Spanish champions’ website said the club’s net worth stood at a staggering £473m (€546m) in June – an increase for the third straight season and up from last year’s £463m (€534m).
The club also announced £368m (€425m) is available for the club to spend as they choose.
The statement adds Madrid’s operating income in 2021-22 increased by 10 per cent in comparison to the previous financial year, rising from £566m (€653m) to £626m (€722m).
That yield comes despite the fact the 14-time European champions losing approximately £347m (€400m) due to the pandemic.
Madrid also recouped £8m (€10m) more in player sales than they spent on new additions in the summer transfer market.
That result is largely down to the £70m sale of Brazil midfielder Casemiro to Manchester United, the third highest transfer fee they have ever collected behind Angel Di Maria and Cristiano Ronaldo.
Perez therefore stated the club are in strong financial shape, which appears rosy compared to the issues with rivals Barcelona.
The Catalan giants’ ability to bring in a host of big name signings this summer was brokered by a huge hike in their wages allowance from LaLiga.
Following the January transfer window, Barca were the only team in the Spanish top-flight to have a negative salary cap at minus £125m (€144m) – essentially urging them to slash their wage bill.
But the Catalan giants were given leeway this season to spend an incredible £569m (€656m) – a hike of £694m.
Madrid meanwhile had a figure of £592m (€683m) – £46m down on last season’s figure.
The Champions League holders had a modest summer by their standards, with their only major signings coming in Aurelien Tchouameni from Monaco for £72m and the free transfer of Antonio Rudiger, who left Chelsea at the end of last season.
LaLiga first brought in a salary cap in 2013, with the belief that the league needed to protect the long-term financial health of its clubs.
It was believed that too many clubs – examples that have been cited by the league bosses include Deportivo La Coruna and Racing Santander – between the first and second divisions were putting themselves at risk with limited protections across their finances.
The salary cap works on the understanding that each club is given a different cap depending on the revenue and spending that occurred during the previous season.
Major clubs such as Real Madrid and Barcelona have typically been able to spend significantly more than smaller clubs because they generate more money.
