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The board of directors of Real Madrid, meeting this Wednesday in Madrid, closed the 2020-21 financial year with a positive result of 874,000 euros, as reported by the merengue entity in an extensive statement where it offers details of all the figures for the last year.
The white club explains that the effects of the crisis caused by Covid-19 and the holding of matches behind closed doors have caused a “loss of income in all business lines, mainly in the stadium, as there is no income from attendance to matches, but also to television rights, both in the League and UEFA, and in commercial activities, both in the operation of facilities and in sales in stores and sponsorship. “
Due to this situation, the Real Madrid estimates that the loss of income suffered by the club in its business lines from March 2020 to June 30, 2021, is close to 300 million euros, “to which should be added the loss of new income that could have been achieved if the pandemic had not existed “, qualifies the entity.
“This loss of income has only been able to be compensated by the club through the execution of intense spending savings measures in all areas: player spending savings plan: in 2020-21 there have been no acquisitions and they have taken out of players, with the consequent impact on both transfer gains and cost savings “, highlights among other measures.
As well as the “reduction in salary expenditure”: “both in 2019-20 and in 2020/21, members of the first football and basketball squads and the main executives of the different directions have voluntarily agreed to lower their annual remuneration by 10% “, in addition to the operating expense savings plan. In this way, the Real Madrid has been able to obtain a EBITDA higher than that achieved in the two previous seasons thanks to the current 180 million euros. “After the savings measures adopted to compensate for the loss of income (…), the club closed the financial year 2020-21 with a profit of 874,000 euros after taxes, just as it already closed with a profit of 313,000 euros on exercise 2019-20 “.
“In this way, the club is going to be one of the few big clubs in Europe that does not incur losses in these two years, given that, according to a UEFA study, the operational losses accumulated by European clubs between 2019-20 and 2020-21 will approach 6,000 million euros, “Real Madrid recalls in its statement, thanking its players and workers for the” contribution made “in this regard.
534 MILLION HERITAGE
In this sense, the Chamartn club assures that “despite the effects of the pandemic”, they have managed to “slightly increase the value of net worth compared to the situation in June 2019 before the pandemic, so that, at 30 June 2021, the net worth stands at a value of 534 million euros “.
In addition, regarding the treasury, “the club obtained in April 2020 new bank financing in an amount of 205 million euros, of which 155 million correspond to four loans with a 1-year grace period and maturity in 5 years and 50 million to A credit policy maturing in 3 years. This operation was formalized with the five banks with which the club operates and is 70% guaranteed by the Official Credit Institute (ICO), within the line approved by the Government for facilitate the liquidity of companies.
Thus, Real Madrid closes the 2020-21 financial year “with a treasury balance as of June 30, 2021 of 122 million euros, excluding the stadium remodeling project.” “This balance has been reached after paying off a bank loan of 50 million euros during the 2020-21 financial year and without the need to have any credit policy balance available.”
A DEBT REDUCTION OF ALMOST 200 MILLION
On the other hand, the club records that it has “unavailable credit policies for an amount of 361 million, which, together with the treasurer”, allows them to “easily meet the expected payment commitments” (…), while Net Debt, excluding the stadium remodeling project, represents an amount of € 46 million, compared to € 241 million the previous year, which means that, during the 2020-21 financial year, the club has reduced its net debt by € 195 million. euros “.
“All these data show the robust financial situation and high solvency that the club maintains despite the pandemic,” says Real Madrid before detailing its contribution to Tax and Social Security income in the 2020-21 financial year, which has amounted to 242.9 million euros.
INVESTMENT IN THE STADIUM
In relation to the reform of the Santiago Bernabu, the club chaired by Florentino Prez He explained that “the amount of the investment accounted for in the 2020-21 financial year has been 166 million euros, including the financial costs capitalized during the construction period. Thus, the accumulated investment until June 30, 2021 amounts to 279 millions of euros”.
“During this fiscal year, in the month of July 2020, the second withdrawal of the loan was made for an amount of 275 million euros, which makes a total of 375 million loan drawn on June 30, 2021 (the first withdrawal of 100 million was produced in the month of July 2019) “, concludes the club, which maintains that” the recovery from the situation prior to the pandemic will not be immediate. ” “In this context, the club will continue in the effort of cost containment carried out so far.”