Real Madrid Publishes World Record Revenue

Hi all,
La Liga giant Real Madrid has claimed a new world record for annual revenue generation in football with the release of its financial figures for the year ending June 30, 2011.

Real reported that turnover, before the transfer of players, increased from Eur442.3 million in 2009-10 to Eur480.2 million in 2010-11. A club statement read: “Real Madrid closes 2010-11 fiscal year with Eur480.2 million turnover, representing an 8.6% increase over last year. It is the largest revenue obtained by any sports institution in the world.”

Real’s net profit saw a significant 31.7% rise year-on-year to Eur31.6 million. The club has also managed to take a substantial chunk out of its debt load as it fell from Eur244.6 million in 2009-10 to Eur169.7 million. “The club has managed to obtain a balanced structure of income sources, with a contribution that equals around a third of the total of each of the three great areas (stadium, television, marketing),” Real stated.

“This diversification of recurring income sources confers social stability to the club, cushioning the impact of possible income oscillations motivated by differences in performance in sports and the evolution of financial activity,” the club added. Real’s great Spanish rival FC Barcelona revealed a pre-tax loss of Eur9.3 million for the year ending June 2011. Operating income rose by 14% year-on-year to Eur473.4 million, while the club was also able to report that its net debt fell from Eur430.6 million to Eur363.7 million.

Another member of world football’s revenue generating giants released record financial figures earlier this month. Manchester United’s financial results for the year ending June 2011 outlined annual operating profits of £110.9 million, while revenue increased to £334.1 million (Eur384 million), up £45 million on the previous year. Headline pre-tax profit came in at £29.7 million, compared with a loss of £15 million last year. [Source: Sport Business]

Karl Lusbec

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