The Real Madrid C. F. Board of Directors have met on the afternoon of the 13th of September and agreed to call an Ordinary General Assembly for the 1st of October 2017, where, among other matters, the financial reports for the 2016/2017 will be submitted for approval.
The 2016/17 has been defined by the football first team recording some of the greatest sporting achievements in history: The Champions League 2016/17, LaLiga 2016/17, The Club World Cup 2016, The European Super Cup 2016. On a financial plane, the titles have been reflected in increased revenues, but also in higher expenses; particularly relating to bonuses paid to sporting personnel, resulting in reduced liquidity.
Operating revenues for the 2016/17 financial year, without counting capital gains earned on player transfers, have risen to a figure of 674.6 million euros, up 8.8% on the last financial year.
Operating profits prior to amortisation (EBITDA) sit at 137.8 million euros, compared to the 162.9 million euros last year. Had it not been for the title wins and subsequent expenses, the EBITDA for 2016/17 would have been 180 million euros.
Pre-tax profit has been recorded at 26.3 million euros, having considered the effect of the title wins. After the deduction of tax, net profits sit at 21.4 million euros, meaning net equity has risen to 463.5 million euros, 21.2 million euros higher than last year.
The cash balance is currently at 178 million euros, which, after that recorded last year, is the highest figure in the club’s history. The drop on last year comes as a result of bonus payments.
The club continues with no borrowing, and net debt value is currently negative at -10.3 million euros, a similar figure to last year. In reality, this represents not a debt, but rather a net liquidity position. This has resulted in debt over EBITDA and net equity ratios remaining at zero, which indicates a position of absolute solvency.
The forecast for the 2017-2018 season predicts revenues of 690.3 million euros, prior to asset disposal, and a pre-tax profit of some 48,6 million euros.