Today's Trending

Real Madrid announce improved €620.1m revenue

Real Madrid have announced positive financial results for the financial year 2015-16, saying they put the club now “in a position of maximum solvency.”

Image result for Real Madrid

The released figures showed that annual revenue had reached €620.1 million, with cash reserves up to €212m and a pre-tax profit of €43m, with last year’s €95.8m debt wiped out.

[pro_ad_display_adzone id=”60438″]

The results were published in a club statement that said the accounts will be presented for approval by Madrid’s “socios” (members) at the Ordinary General Assembly, which has been set for Oct. 23.

“Operating revenues for the financial year 2015/16, without taking into account capital gains obtained as a result of player transfers, have topped 600 million euros for the first time, reaching a figure of 620.1 million euros, a 7.4% increase on the previous financial year,” the statement said.

“The operating result before repayments and player transfers (‘recurring EBITDA’) has risen to 163.2 million euros, which is the highest figure ever reached by the club, representing a 26.3% increase on revenue figures and a rise of 20.9% on the previous financial year. A pre-tax profit of 43.3 million euros has been recorded, which is 22.5% less than the previous financial year. This is due to the non-recurrent effect of player transfers, despite the operating improvements recorded.

“After achieving a net profit (after tax) of 30.3 million euros, net worth has risen to 442.2 million euros. The cash balance has risen by 102.6 million euros to reach a figure of 211.5 million euros, thanks to higher cash flow generated by operations and restraints on investments.

“As a result of the increase in liquid assets and the reduction of creditor balances by investments, the net debt has fallen by 108.9 million euros to sit at a figure of -13.1 million euros, which in reality represents, not a debt but rather a net liquidity position. Therefore, multiples of debt over EBITDA and net worth have been reduced to zero, indicating a position of maximum solvency.”

However, figures announced by Madrid have previously been questioned by outside observers who say they do not tell the complete story of the club’s finances.

Madrid topped the Delotte Football Money League 2014-15 revenue tables in January, when their €577m total edged out closest rivals Barcelona’s €560.8m.

In July, Barca announced record revenue of €679m for the 2015-16 season, but the Catalan club use a different accounting method that means Madrid could remain top of the Deloitte table.

Manchester United recently announced a £515.3m annual revenue, which stands at €572.5m at current exchange rates.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: