The board of directors of Real Madrid will ask its partners this Saturday for authorization to increase the debt and finance the works not initially included in the remodeling of the stadium Santiago Bernabeu, on the Assembly which will be held in a presence and telematics in the basketball pavilion of its Sport City. An increase in debt that would be about 200 million euros that would be dedicated almost exclusively to carrying out the retractable lawn work, which, on the other hand, is already underway.
The extraordinary session will vote on this point after doing so with the ordinary sections referring to the settlement of the budget for the 2019-2020 season and the one foreseen for the present one, once it has been calculated that the pandemic It has meant a loss of income close to 300 million euros from March 2020 to June 30, 2021.
The partners authorized the board three years ago to borrow up to 575 million euros for a maximum term of 35 years to finance the remodeling of the field. The financing, according to the president at the time, would amount to about 25 million euros a year, a figure less than 4% of the income from the previous season (2017-18).
The new Bernabéu It will have a retractable lawn system and a cover that will also allow its use for other activities outside of football, for a commercial operation with which the club plans to increase revenues significantly.
The appointment of this Saturday will have a marked economic character above all, but there will also be room to talk about the sporting situation and issues such as the attempt to sign the French Kylian Mbappé with an offer of 200 million euros and its expected arrival next year, the project of the Superliga or the club’s no to the agreement of LaLiga with the investment fund CVC.
Within the presentation of current economic figures, the directive will refer to the 534 million euros which has as net worth and the 122 of treasury balance as of June 30 last.
Positive balance of 874,000 euros
According to the data provided by the club, it has gone from having a net debt of € 240 million in the 2019-20 season to € 46 million in the 2020-21 -excluding the remodeling of the field- and, despite the reduction in income due to the health crisis, closed the 2020-21 financial year with a positive balance of € 874,000 after taxes.
This means that it is going to be one of the few great clubs Europe that it does not incur losses in these two years, according to a report by the UEFA, which reflects that the operational losses accumulated by European clubs between 2019-20 and 2020-21 will approach € 6 billion.
The reduction in income has been offset by a reduction in salaries, operating expenses and player losses of € 295 million in the last two seasons. The players of the first squads of soccer and basketball and the main executives lowered their annual remuneration by 10% voluntarily.
In 2019-20 it did not save on player casualties, but in the past, without acquisitions and with five casualties, it reduced expenses by 175 million euros.
The Ordinary general meeting It will be held at 9:00 a.m., in the first call and at 10:00 a.m., in the second, if necessary, according to the following agenda:
1. President’s report.
2. Examination and approval, where appropriate, of the Budget Settlement, the Report, the Balance Sheet and the Profit and Loss Account, corresponding to the 2020/2021 financial year.
3. Examination and approval, if applicable, of the Budget of Income and Expenses and the Project of Activities for the Fiscal Year 2021/2022.
4. Proposal of social contributions for the 2022/2023 season.
5. Requests and questions.
The Extraordinary General Assembly of Members The club will be held after the Ordinary Assembly, according to the following agenda:
1. Proposal for the extension of the authorization to the Board of Directors of the club to borrow in order to finance works not initially included in the remodeling of the Santiago Bernabéu stadium.
Read also