A look at Team Finances - Madrid is making $$

[Adi]

Full article: http://swissramble.blogspot.com/2011/06/real-madrid-and-financial-fair-play.html



Interesting to see how Madrid is the most profitable team in the world despite spending so much on players.  You can read the article for all the details if you're interested in the financial side of the game.  I'm still trying to figure out how Barcelona can be losing so much money.

In spite of their massive spending, the club is not only profitable, but is making large profits year after year: 2007 €44 million, 2008 €51 million, 2009 €25 million and 2010 €31 million. That works out to over €150 million of profit in just four seasons.

Even though Madrid have been remarkably successful in producing a balanced revenue model, broadcasting revenue still provides them (and Barcelona) with a key competitive advantage over their foreign counterparts, thanks to their lucrative domestic deal. For example, Manchester United generated €31 million less than Madrid, even though they received €19 million more in Champions League distributions.

In other words, Madrid and Barcelona on their own received around half of the total TV money in La Liga or 12 times as much as the €12 million given to the last clubs on the list (Malaga, Sporting Gijon, Tenerife and Xerez). This produces the most uneven playing field in Europe and compares unfavourably to the 1.5 multiple in the Premier League between first and last clubs.

Looked at another way, both Madrid and Barcelona received about twice as much from their domestic deal as Premier League champions Manchester United, even after a significant increase in the latest English deal. However, in stark contrast, West Ham, the team that finished bottom of the Premier League, received more money than Valencia, who finished third in the Spanish league. The logical result of such a disparity is a distinct lack of competition and a need by clubs such as Valencia to sell their best players, e.g. David Villa and David Silva last summer, which further reduces the chances of other clubs providing a stern test to the big two.

[jabarinho]

recession recovery? what recession? haha that is what madrid are saying. Give credit to Floro Perez for his ability to mix business and football somewhat effectively. He spends 80 mil pounds on cristiano ronaldo and makes the money back within less than 2 years through only shirt sale revenue

His galactico policy may blow hot and cold on the pitch but it is always effective financially because of shirt sales and tv revenue.

And yeh the barcelona losses is very strange, especially considering how much champ league winning money and ticket sale money they get from playing over 60 games per season, combined with their high tv revenue. It looks as though if barca's on-field performances drop in the near future they might make even more losses.

But that being said madrid and barca still are neck-deep in debt. But madrid are justifying it by making profits each year while barca justify it by winning trophies. But what happens when the trophy-era ends? Madrid have the best sporting and financial model Hala Madrid!

[Christof]

Great.... Madrid is in debt by 660 mio Euro, Barca 550....