Real Madrid Finances 2022/23

Houses In Motion

Real Madrid’s 2022/23 accounts cover a season when they won three trophies: the Copa del Rey, the UEFA Super Cup and the FIFA Club World Cup. However, they would have been disappointed to finish second in La Liga behind their great rivals Barcelona and also to be eliminated in the Champions League semi-finals.

Profit/(Loss) 2022/23

Real Madrid’s pre-tax profit reduced from €20m to €9m, even though revenue shot up €121m (17%) from €722m to a club record of €843m, which comfortably surpassed the pre-pandemic €757m peak, and profit from player sales increased from €62m to €71m.

In addition, operating expenses were cut €166m (15%) from €1.1 bln to €911m, while there was a €9m swing from €3m net interest payable to €6m receivable.

However, all of these improvements were offset by the fact that there was no repeat of the previous year’s €316m capital gain from Sixth Street/Legends.

Profit after tax was only down €1m to €12m, as tax went from a €7m charge to €3m credit.

Almost all of Real Madrid’s revenue streams were higher, led by membership fees & stadium, up €48m (46%) from €104m to €152m, as there were still some COVID restrictions in force in 2021/22.

Marketing increased €40m (14%) from €290m to €330m, while broadcasting rose €8m (4%) from €179m to €187m and other income more than quadrupled from €9m to €39m.

However, international competitions & friendlies fell slightly by €3m (2%) from €139m to €136m, as the club won the Champions League the year before.

Higher revenue was augmented by a steep reduction in operating expenses, especially staff costs. Total wages were cut by €66m (13%) from €519m to €453m, while player amortisation also decreased €25m (15%) from €164m to €139m.

Other expenses were trimmed €11m (4%) to €306m, while there was no repeat of prior year’s €61m impairment provision.

Financial Levers

Real Madrid’s reported profit was more impressive last season than the year before, as there was no financial benefit from pulling a financial lever.