Real Madrid has claimed an operating income landmark of €1.073bn (£901.5m/$1.16bn) for the 2023-24 financial year, highlighting the huge rise in revenue generated by the Estadio Santiago Bernabéu despite the venue’s redevelopment scheme being not yet fully complete.
The Spanish LaLiga outfit’s operating income for 2023-24 represented a 27% rise on the previous year’s figure of €843m, with Real stating that breaking the one-billion-euro mark in operating income before disposal of fixed assets represents an “unprecedented figure for any football club”.
Real said revenue gains in marketing and from the stadium are particularly notable. Despite the business elements related to the Bernabéu’s grand revamp being not fully complete, there has been a progressive increase in terms of capacity and commercial operations over the course of the year.
This saw the initiation of new business areas in the latter part of the financial cycle, in particular hosting major events and a new premium offering with new VIP experiences. This has resulted in a significant increase in stadium-related revenues, from around €150m last year to circa €320m.
Real’s EBITDA remained relatively stable at €156.3m, versus €157.6m last year, but profit after tax rose from €11.8m to €15.6m.
The Bernabéu has been undergoing the biggest transformation in its 75-year history and Real debuted a new retractable roof at the stadium on September 2. In November, Real approved a financing plan to fund the ongoing renovation, with president Florentino Pérez claiming that the project will “change the history” of the LaLiga club.
Following an extraordinary general assembly meeting, Real confirmed that a proposal to extend the authorisation to the club’s board of directors to go into debt in order to finance the works had been approved. The approval came after it was reported in October that Real was seeking to borrow an extra €370m to fund the renovation of the stadium – an amount Pérez confirmed at November’s meeting.
In relation to the project, following the expanded scope of the works not initially included in the scheme, the club has continued to carry out the works during the 2023-24 financial year. Work has gradually been completed on various structural components of the project, such as the façade, roof and retractable pitch.
As of June 30, 2024, the closing date of the financial year, activities related to the development of business areas (VIP Area, Tour, RM Experience, events, restaurants and club store) are still in progress and will be completed in the 2024-25 financial year.
The investment recorded in the 2023-24 financial year totalled €270m, including capitalised financial costs during the construction period. This means the accumulated investment as of June 30, 2024, sits at €1.163bn.
Regarding the loan, the additional €370m drawn in November brings the total loan amount to €1.17bn. Furthermore, having paid interest only during the previous three financial years, 2023-24 saw a capital repayment of €15m made, meaning the outstanding loan balance stands at €1.155bn as of June 30, 2024.
Real is said to have not been expecting to break the €1bn operating income barrier for 2023-24. Real added that although stadium-related income has already increased during the 2023-24 financial year, it will see further “significant growth” in the 2024-25 period once the stadium becomes fully operational across all business lines.
Share this