So which is it?
They slashed payroll, Gareth Bale leaves this summer, so that's another €31m saved. They have a lucrative stadium deal worth £400m a year. They're shirt sponsorship deal s up for negotiation, I would expect a massive increase.
Everything I read is that they're doing really well. They even made a profit during the pandemic.
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Real Madrid given green light for big money signings
Madrid's careful financial management during the past few years has given them margin to make at least one major signing. Wage cuts and selling players has been key.
Jorge C. Picónjorgecpicon
Update: September 30th, 2021 17:34 EDT
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Real Madrid's prudent economic management during the past few years is paying off. The club is in a strong position following the publication of the squad's salary cap for this season - it means that they have 739.1 million euros to spend on the sports section, a new club record and all down to an aggressive, cost-cutting policy. Selling players such as
Cristiano,
Achraf Hakimi,
Raphaël Varane and
Martin Ødegaard, has liberated the club from paying top wages (Sergio Ramos, who left on a free transfer, can be included in that bracket too) and that has had a notable effect on the club's coffers. Money has also been saved by loaning players out over the past few seasons. On top of that, the club was forced to cut back to ride out the financial crisis provoked by the pandemic and like many clubs, players' salaries were slashed to offset the loss of income from other areas. Thanks to the support from the players, Madrid is now in an enviable situation compared to other clubs in Spain and around Europe.
Real Madrid
NewsStatistics
Real Madrid have more to spend on new signings
The
739.1 million euros which Madrid have to spend is 270.6 million more than the figure they had last season, when their budget was 468.5 million. "Real Madrid's economic management during the coronavirus pandemic was excellent. Adding that to the results from 2019-20 and 2020-21, the overall profit stands at around one million euros. They have managed to balance expenditure and revenue to ensure that they didn't suffer losses," explained
LaLiga's Corporate Director, Juan Guerra. Boosting the coffers through sales has also enabled Madrid to not go over the salary cap during the past few seasons, so every year they have been able to save - something which other clubs haven't done. The annual reports presented to club members and other organisations have been encouraging to say the least. There was an example last season when Madrid had planned their budget based on
the prediction that they would reach the Last 16 stage of the Champions League. As it turned out, they made it as far as the semi-finals and brought in more prize money than they had bargained for.
A fund for new signings
"Madrid have enough money to sign Mbappé
and Haaland," LaLiga president Javier Tebas said a few days ago. During the last transfer window, the cub adjusted their salary cap to perfection in order to be
to able to register new signing Eduardo Camavinga without any issues. The limit stood at
418 million euros in June, but after series of measures implemented by the board it rose to 292 million (through shareholders' funds) and balance the numbers to cater for transfer fees, wages and bonuses. Clubs can have a salary cap which is is lower than their own estimate if their economic forecast is pessimistic (which was Madrid's case with the Champions League), and they can also increase it if they present shareholder funding during the season.
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