La Liga, Real Madrid

Real Madrid Break €500m Revenue Barrier

Real Madrid has announced record revenue of €514 million for the 2011-12 season, an increase of seven percent.

Real said that this is the highest figure earned by an international sports institution and makes the club the first one to surpass the 500 million Euros barrier in the sports industry.

That is simply an amazing revenue number, considering that in 2007, Real Madrid’s revenues were only €351 million. That means in the last five years, during one of the worst economic crisis to have ever hit Europe, Real Madrid saw its revenue increase by €163 million. An amazing number.

In a nod to UEFA’s financial fair play requirements, Madrid said its net debt fell by 26,5% from €169.7m to €124.7m.

What is interesting in looking over Real Madrid’s financial numbers is that despite having some of the highest paid players on their wage bill, the clubs wages are still under 50% of revenue. They are are of only a handful of top clubs in Europe who manage that.

Millions of € 2010/11 2011/12 Variation
Income (before profit/loss from disposal of fixed assets) 480,2 514 7,0 %
EBITDA (before profit/loss from disposal of fixed assets) 147,7 133,8 -9,4 %
EBITDA 151,1 153,9 +1,9 %
Operating income 46,5 43,9 -5,6 %
Profit/loss before tax 46,8 32,3 -31,1 %
Net result 31,6 24,2  -23,3 %
Equity as at 30 June 251,1 275,2 +9,6 %
Financial debt as at 30 June 169,7 124,7 -26,5 %
Debt/EBITDA ratio 1,1 0,8
Debt/Equity ratio 0,7 0,5
Staff expenses/income efficiency ratio 45,0 % 45,5 %