The impact of the coronavirus pandemic conditioned the economic data of the Real Madrid from last season and the budgets of the present, with a reduction amounting to 300 million euros, closing the year with a positive result of 313,000 euros.
The Real Madrid board of directors met on Wednesday afternoon and convened the club’s Ordinary General Assembly for December 20 to submit for approval the results of the 2019/20 season and the current budget for the current course.
The situation that the world is experiencing due to covid-19 and that hits football, represents a reduction of 13% in Real Madrid’s income from last season. It stopped entering 106 million euros, which discounted 16 million of the costs directly associated with said income, represents a loss of 91 million. Despite this, it announced in a statement that it “maintains a solid financial situation”, thanks to a “net worth of 533 million euros and a treasury of 125 million euros.”
For the 2020/21 season, he estimates a loss of revenue of 300 million euros compared to the years prior to the pandemic. He estimates that it will be 617 million euros, the same number of his new budgets.
Real Madrid refers to the remodeling that is being carried out in the Santiago Bernabéu stadium, with an “accumulated investment amounting to 113.7 million euros”, and ensures that “the first provision of the loan has been made for the amount of 100 million euros “.
To mitigate the impact of lost income, the white club has implemented “cost saving measures”. Has proceeded to a 10% reduction in salaries for players and coaches of the first football and basketball teams, along with the main executives of the different directions of the club. Coupled with 8% savings “in operating expenses” thanks to a savings plan.
In financial terms, the impact caused by the pandemic has left Real Madrid’s treasury in a negative balance of 154 million euros, as the club has to assume the loss of income plus the postponement of collection of sponsorship contracts and fees. membership fee.
To offset this impact, the club obtained a “new long-term bank financing” with five banks for an amount of 155 million euros of four loans with a maturity of five years, plus 50 million of a credit policy with a maturity of three years.
Real Madrid informs that its contribution to tax revenue and social security amounts to 286.4 million euros, and that it has donated 3.3 million for the purchase of medical supplies in the fight against the pandemic. He announces that “despite the savings measures”, the after-tax result will be “significantly affected by this significant loss of income.”
Therefore, it budgets for this season a decrease of 14% in income compared to the year just closed, with an estimated income of 616.8 million euros. Compared to two seasons ago, it would be 25% less, compared to 822.1 million, which shows the effects of a pandemic that affects many business routes, with the public in the stands, no commercial activities and a large reduction in the entry into the Bernabéu Tour and sale in stores. Without the coronavirus, Real Madrid’s budget would be 900 million euros.
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