Real Madrid brings to the Assembly a surplus of 874,000 euros

Real Madrid today celebrates its Ordinary general meeting, which will be followed by an Extraordinary Assembly in which the Board of Directors will request the authorization of the representative members to extend the credit for the reform of the Bernabéu. The meeting of the highest governing body of the white entity will be held in a mixed mode: the 1,955 delegates with voice and right to vote (plus the ex officio members of the Assembly) may participate telematically or go in person to the Basketball Pavilion of the sports city of Valdebebas.

The conclave is scheduled at 09:00 in the morning in the first call and at 10:00 in the second call, the time at which the Assembly is scheduled to begin. This has like first item on the agenda the report of the president, Florentino Pérez. It will be the first time that the Madridista leader is accountable to the partners after renewing his mandate (until 2025) in the electoral call last April.

The economic section of the Assembly focuses on the second and third points. The Board will submit the accounts for the 2020-2021 season, formulated by the Board on July 14, to the voting of the representative partners. Madrid weathered the storm of the pandemic for the second consecutive year. Against the general picture of losses in European football (up to 8.7 billion euros, according to UEFA estimates), Madrid closed the year positively, with a profit of 874,000 euros, in a campaign in which revenues amounted to 653 million euros. The Board of Directors will explain to the representative partners the savings measures implemented to maintain the economic health of the entity and will present a budget of 695 million euros for the 2021-22 season, levels still lower than those before the pandemic. In the fourth point of the Ordinary Assembly the proposal of social quotas for 2022-23 will be discussed, before giving way to the requests and questions of the partners.

Following the ordinary, An Extraordinary Assembly will be held with the works of the Bernabéu as the only item on the agenda. The club will ask the members to authorize the Board of Directors to increase the debt by around 200 million euros to finance the remodeling of the stadium, in order to undertake works not contemplated in the initial project. An enclosure that, thanks to its retractable lawn, will be able to intensify its use on non-match days.

Some of the main figures of the accounts

• The Board of Directors returns to the Assembly some healthy and positive accounts, despite having entered last season 8% less than the previous year (they were € 714.9 M in 2019-20). The entity, one of the few European clubs that will not incur losses in these two exercises, estimates that it has stopped earning about 300 million euros due to the pandemic.

• The savings from the measures carried out by the club since the beginning of the pandemic amounts to 295 million. € 58M came from the salary reduction of the first football and basketball squads and the club’s senior executives, € 62M from the reduction of operating expenses and € 175M from various items from the sale of players.

• The cash balance at June 30 is 122.1 million euros, net worth of € 533.7 million and net debt of € 46.6 million.

• The accumulated investment in the stadium works as of June 30 amounts to 279.2 million euros, 48.6% of the total of 575 million of the 30-year loan.