Real Madrid end 2019/20 season with 320,000 euros surplus

13 Sep 2020

Real Madrid ended the 2019/20 season with a surplus of 320,000 euros which shows that the club adapted well to the difficult economic situation posed by the coronavirus.

Football, and especially the biggest clubs in the game, had their finances affected enormously by the absence of fans in stadiums.

Florentino Perez and Jose Angel Sanchez introduced a series of cuts in order to manage the crisis with the most important being the ten percent wage cut for players in the football and basketball first teams.

Player bonuses were also cut, meaning wasn’t a payment even made to players for winning LaLiga last term, and extra expenses were made across the board to avoid making a loss over the season.

The club has calculated a reduction of income of more than 172 million euros since the start of the pandemic, which could rise even further if fans aren’t allowed back to the stadium during the season with predictions of around 650 million euros in losses.

Players are going to have to tighten their belts over the coming year but there is consensus that there will be no problems when it comes to contract negotiations and wages, given the circumstances.

The club have had to put the brakes on deals for certain players such as Kai Havertz, Eduardo Camavinga and Erling Haaland with priority being put on selling players and freeing up the wage bill.

The club will only see new signings coming in if there is significant money brought in through the sale of players.

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