Real Madrid’s 2023/24 accounts cover a season which was very much a case of “close, but no cigar”, as they finished runners-up in La Liga and were defeated in the final of the Copa del Rey and the Supercopa de Espana, losing out to their great rivals Barcelona on all three occasions.
They were also eliminated in the quarter-finals of the Champions League by Arsenal, which would be good result for most clubs, but actually represented their worst performance in this competition for five years.
On the other hand, they did win the European and Intercontinental Super Cup titles, beating Atalanta and Mexican club Pachuca respectively. They also reached the semi-finals of the expanded FIFA Club World Cup, before losing to Paris Saint-Germain.
At the end of the season, head coach Carlo Ancelotti left to take charge of the Brazilian national team. The Italian was replaced by Xabi Alonso, who led Bayer Leverkusen to an unexpected Bundesliga title in 2023/24.
Profit/(Loss) 2024/25
Despite the less successful season, Real Madrid managed to increase their pre-tax profit by €11m (57%) from €20m to €31m.
Revenue continued to grow, rising €112m (10%) from €1,073m to a staggering €1,185m. This meant that the club broke the one billion Euros barrier for the second season in a row, a feat that no other football club has yet achieved.
In addition, profit from player sales increased by €11m (52%) from €21m to €32m
However, this was partially offset by growth in operating expenses, which rose €69m (6%) from €1,072m to €1,141m, while net interest payable shot up from just €2m to €44m.
Profit after tax rose €8m from €16m to €24m, as tax payable increased from €4m to €7m.
The revenue growth was helped by the stadium becoming fully operational after the recent development works, leading to new club records in most of the revenue streams.
Membership fees & stadium income was up €19m (6%) from €307m to €326m, while international competitions & friendlies rose €39m (26%) from €151m to €190m.
However, the largest growth came in marketing, which climbed €74m (18%) from €407m to €481m.
On the other hand, broadcasting fell €17m (10%) from €179m to €162m, while other income dropped €4m (13%) from €30m to €26m.
The higher revenue was largely offset by an increase in the cost base, which was also linked to the stadium becoming fully operational.
As a result, there were steep rises in both depreciation, which more than tripled from €14m to €47m, and net interest payable, which surged from €2m to €44m. Other expenses also grew by €34m (8%) from €425m to €459m.
In contrast, total wages only rose €9m (2%) from €505m to €514m, while player amortisation actually slightly decreased from €117m to €116m and there was no repeat of the previous season’s €8m player impairment.
Profit League
Madrid’s €31m pre-tax profit is the highest so far reported for last season, though many of the comparatives are from 2023/24, with the closest “challengers” being Athletic Bilbao €8m and Real Betis €6m.
