On June 30, 2022, the club’s equity increased to 546 million euros and the club became 425 million euros.
Revenue loss due to coronavirus from March 2020 to -400 million euros.
|Comparison of seasons 2020/21 and 2021/22 (million euros)||2020/21||2021/22|
|Revenue (excluding player sales revenue)||653.0||721.5|
|EBITDA (without proceeds from the sale of players)||179.6||203.0|
|Equity (until June 30th)||533.7||546.4|
|Cash (as of June 30)||122.1||425.5|
|Net Debt (until June 30th)||46.4||-263.1|
|net debt/net assets||0.1x||0.0x|
The Real Madrid Board of Directors, which met today, September 12, 2022, decided to hold a general meeting on October 2, 2022, during which, among other things, the financial results of the 2021/2022 season will be submitted for approval.
On the sporting front, the first team of football players won the European Champions League in the 2021/22 season, and the fifth title of this kind in the last 8 years, in addition to the Spanish Championship and the Spanish Super Cup. The first team of basketball players won the Spanish championship, was one of the finalists of the Euroleague and the winner of the Spanish Super Cup. All this translated into higher revenues, but also costs, especially in terms of bonuses for sports employees.
Revenue (excluding player sales revenue) over seasons; The use of blue for the stadium, yellow friendlies and international matches; Orange TV Green Marketing.
Regular revenue for the 2021/22 season was €722 million, an increase of €69 million (10%) over the previous accounting period. The financial effects of the outbreak have gradually diminished.
However, these effects still exist, so the turnover for the 2021/22 season is still lower than it was 4 years ago in the 2017/18 season and is €100 million less than the 2019/20 season budget. during which the epidemic spread. Comparing the current situation to the pre-pandemic situation, the club lost about 400 million euros in all aspects of the business from March 2020 to June 30, 2022, not to mention the loss of new revenue that would have been achieved without the pandemic.
As indicated, revenue from this season continues to be affected by the effects of the COVID-19 pandemic. In addition to the impact of reduced revenue from the use of the stadium resulting from the work on its reconstruction. As a result, the club in this period continued to focus on reducing costs, improving the management and development of all business matters, as you can distinguish the financial surplus generated in this accounting period in agreement with Sixth Street / Legends.
With all this and the use of the financial guarantee, the club generated an EBITDA of €203 million (in the previous season it was €180 million and the year before it was €177 million).
EBITDA over the seasons.
With three seasons affected by the coronavirus and despite losing revenue from it, it eventually generated more EBITDA than in the 2018/19 season, the last full season without a pandemic, demonstrating the club’s operational efficiency as well as its ability to respond . management in the face of the mentioned revenue losses.
Net profit was 13 million euros after deducting depreciation charges, financial results and taxes. This result allowed the club to be positive in each of the three seasons with the epidemic, as the net profit in the 2019/20 competition amounted to 313 thousand euros, and in the 2020/21 competition it amounted to 874 thousand euros. Real Madrid is one of the few great clubs in Europe that has not incurred losses in the past two seasons, and UEFA showed in its study that the total losses of European clubs in 2019-2021 amounted to nearly 6 billion euros.
Thanks to the profits made, the club increased its balance every year, which reached 546 million euros on June 30, 2022. Despite the outbreak of the epidemic and the loss of up to 400 million euros in revenue, the club managed to increase its equity by 14 million euros compared to June 30, 2019.
Stocks all seasons.
The balance of funds at the club’s disposal on June 30, 2022, excluding funds for the reconstruction of the stadium, amounted to 425 million euros. This high amount has been achieved thanks to measures that hinder investments and reduce costs, as well as business development, where the financial surplus resulting from the agreement with Sixth Street / Legends should be highlighted. In doing so, the club also compensates for the loss of revenue from March 2020 caused by the pandemic amounting to 400 million euros.
Cash at the club’s box office throughout the seasons.
In addition to the aforementioned cash, the club has €354 million in unused lines of credit as of June 30, 2022, which enhances the club’s liquidity for all the obligations it will have to pay.
The club’s net debt, excluding the reconstruction of the stadium, was -263 million euros as of June 30, 2022. This value does not actually represent debt, but net cash, because the sum of cash and transfers receivable exceeds investment obligations, bank debts and other liabilities.
Revenue (excluding sales revenue
The net debt on June 30, 2021, excluding the reconstruction of the stadium, was €46 million, which means that the club reduced the net debt by €310 million in the 2021/22 season.
Compared to the situation prior to the pandemic (June 30, 2019, net debt was -27 million euros), the net debt as of June 30, 2022 decreased by 237 million euros, showing that the club was able to achieve this through austerity measures and other business improvement compensation measures for Loss of revenue resulting from the outbreak of the epidemic and its negative impact on cash and debt.
The debt/EBITDA ratio is 0, as the club has no debt and has net liquidity. This means that despite the pandemic, the club has achieved a debt/earnings before interest, tax, depreciation and amortization ratio, which has the best credit value for financial institutions.
All these numbers prove that the club has achieved excellent wealth and financial solvency despite the epidemic.
Real Madrid’s contribution to financial and social taxes in the 2021/02 season amounted to €351.1 million (including income tax and image rights €193 million and VAT of €143.9 million).
As for the project to rebuild the Santiago Bernabéu, in the 2021/22 season, the works were carried out as planned, reconciling them with football matches.
In the 2021/202 season, the investment used in the redevelopment amounted to 259 million euros, including financial costs. Thus, the cumulative investment in reconstruction as of June 30, 2022 amounts to 538 million euros.
For the transfer loan, the third loan (€200 million in July 2021) and the fourth (€225 million in May 2022) were received in the 2021/22 season, so the total loan available on June 30, 2022 was €800 million.
|Use of a loan of 800 million to rebuild the stadium||2020/21||2021/22|
For the 2022/23 season, regular revenue is expected to be €769.6 million and profit before tax is €5 million.
This revenue budget represents an increase of €48.1 million (7%) over the 2021/202 period.
Even with this increase, this budget is still €52.5 million (6%) lower than the budget for the 2019/20 season, which is planned at €822.1 million.
This is due to the fact that the effects of the financial crisis that erupted as a result of the epidemic are still present, which now includes the economic difficulties associated with the armed conflict in Ukraine.
In addition, in the 2022/23 season, the club will continue construction work for the reconstruction of the stadium, which will not be fully operational in terms of revenue until the completion of these works.
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