The Board of Directors, and club President Florentino Perez, have finalized the accounts for the 2022/2023 year end financial reporting.
The big highlight was in regards to operating income which exceeded 2019 levels before the Coronavirus pandemic ravaged club finances. At 843 million euros, an increase of +17% vs prior year, the club’s income has hit a new high. This new figure was achieved despite limited capacity at the stadium due to the remodel project. Outside of stadium revenue, there was growth in nearly every area, particularly in marketing and commercial income channel which materially improved vs the prior season (+12%).
The expectation is that the blue bar, the stadium income, will grow exponentially in the coming years. The 2024/2025 season is earmarked as a full year with the complete stadium remodel and outside events (concerts, NFL games, tennis matches, NBA games, parking etc.) will be flowing through to the club’s income.
Personnel expense has come down dramatically in the 2022/2023 season following the departure of big contracts like that of Eden Hazard and Karim Benzema. UEFA recommends expenses make up no more than 70% of total generated income. Just like many personal finance experts recommend no more than 50-60% of your income be dedicated to “fixed expenses”. This gives companies and individuals wiggle room for unforeseen expenses or potential shifts in income. Madrid have brought down their ratio from 72% last season to 54% in the current year.
Real Madrid’s EBITDA (earnings before interest, tax, depreciation, and amortization) — remains healthy and in line with previous year earnings. EBITDA came in at 158 million euros, lower than last year’s 203 million, but that was in large part due to the one-time cash injection by Legends - Sixth Street last season.
After tax and all expenses are accounted for, Real Madrid turned a profit of 12 million euros. A feat that is rarely achieved in club football finances, particularly in the post-pandemic era. Under Florentino Perez’s leadership, the club continues to provide a solid financial foundation which allows for greater investment in infrastructure, players and club employees, and commercial exploits. The strong financial base helps provide a clear pathway for current and future sporting success.