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10 data on the sustainability of Real Madrid

05:10:09 · Financial Review 3999 Readers · · a Comment


Several studies of different sports analysts and economists in recent months have been devoted to examining the economic and financial sustainability of Real Madrid. After Perez's re-implement a policy of heavy investment in players, the doubts about the success or failure of the strategy are many.

No doubt it will be difficult to predict the financial future of Real Madrid, without knowing what success the team will get sportingly. However, as we have already published elsewhere, here are some data that can help when the issue is financial sustainability of Real Madrid.

10 data on the sustainability of Real Madrid

[1] 9.10 Real has invested 257 million euros on new players, up from 87 million in revenue transfers, so a deficit of 170 million Euros.

[2] Overall (acquisition + salaries for six years) to purchase the Real Ronaldo will cost 172 million euros for Kaka and 119 million euros, a total of 291 million euros, not including other acquisitions.

[3] The club took a loan of 220 million Euros, paying with bank guarantees revenue from TV rights contract with Mediapro, which provides revenues of 157 million euros year over seven years, totaling 1,100 million Euros.

[4] Real Madrid recently renegotiated the contract for advertising on the jerseys with the bookmaker Bwin, the new contract for four years (from 09/10 to 12/13) expected revenue of 25 million Euros per year, a total of 100 million Euros, the largest contract of its kind worldwide.

[5] Between 03/04 and 06/07 under the effect David Beckham Real increased its revenue 137% of merchandising, estimating that the club has generated this kind of revenue over 400 million euros during this period.

[6] It is estimated that with the new acquisitions the club can generate over 120 million euros extra annual revenue. According to Florentino Perez amounts paid by Beckham, Figo, Ronaldo and Zidane were overcome by income.

[7] According to the report and accounts for 08.07 the club accumulated a debt of 563 million Euros, so the debt in 08/09 club certainly will amount to 733 million euros.

[8] Real Madrid finished second on the club with Deloitte the world's largest revenue 07/08 with 365 million euros, the club budget for 08/09 provided for an increase to 400 million Euros.

[9] According to Brand Finance Real Madrid has its brand valued at 340 million, occupying the 2nd position behind Man.United. With the push of the acquisition of new media players, this is the best tool to renegotiate contracts.

[10] According to Sport + Markt only in Europe Real has about 46 million adherents, behind Barcelona with 50 million, but the global perspective will certainly be different with Asian fans to follow the new contracted players.

Comments

1 Comment on "10 data on the sustainability of Real Madrid"
  1. Pedro Mota says:

    In short, it is profitable for Real to make this investment because it has an ability to generate revenue of another world .. If Real to make a triple as he did last year Barca do not want to imagine the revenue, but surely arrive to 450M ...

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