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Inside Real Madrid’s 2023-24 budget

Breaking down Real Madrid’s financial planning for the 2023-24 season.

UD Las Palmas v Real Madrid CF - LaLiga EA Sports Photo by Angel Martinez/Getty Images

Real Madrid’s massive Santiago Bernabéu renovation project continues into its fifth year of construction work. However, the club’s 2023–24 budget shows the financial progress happening alongside this major undertaking.

Total revenues are predicted to grow by an impressive €96.5 million (11%) to €939.5 million this season. This is driven by the new-look stadium starting to unlock more commercial opportunities, even though building work remains ongoing.

Throughout 2023–24, expanded hospitality and sponsorship deals at the Bernabéu will begin boosting income. Still, the renovation’s full revenue impact will come in 2024–25 once everything is complete.

On the other hand, broadcasting and marketing revenues look set to decline by €28.8 million compared to last year. This is due to less favorable Spanish TV rights deals and the absence of some one-off sponsorships achieved previously. Sporting ambitions also appear scaled back, with only a Champions League quarter-final run budgeted.

Operating costs will balloon by €78.5 million to cover escalating stadium construction costs as well as broader inflation-impacting service contracts. But management has avoided any provisions for downplaying squad value after last summer’s overhaul.

Financially, the transition shows in the numbers. Operating profit (EBITDA) should increase €25.9 million to €183.5 million as the new Bernabéu’s impact starts filtering through. However, net finance charges will swing €34.3 million into losses. Pre-tax profit nudges up slightly to €10.4 million, while the final €6.4 million net profit represents a €5.5 million year-on-year fall.

Real Madrid’s 2023–24 budget have also been boosted recently with the introduction of HP as the sleeve sponsor of the club. The reported yearly figure for this sponsorship is close to 70 million euros. This figure will push Real Madrid’s annual revenue beyond a staggering one billion euros, which is unprecedented in the sport.

This Real Madrid budget shows measured optimism amidst the Bernabéu rebuild. The revamped stadium will bring commercial success when it is complete. But the club must adeptly balance its finances during this transition. The glittering new arena promises a prosperous new chapter for Real Madrid. However, managing rising costs now requires financial agility.

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