Real Madrid: The First Club to Surpass €1 Billion in Operating Revenue – The Virtuous Cycle in Football

Florentino Perez, the current president of Real Madrid, was a candidate in 1999-2000, and promised and delivered Luís Figo, the idol of arch-rival Barcelona. And later developed the Galácticos project, which changed the football forever.

More than two decades later, this strategy continues to drive the club's economic and commercial success. The club closed the 2023-24 season with record operating revenues of €1.07 billion, a 27% increase, compared to the previous year.

Real Madrid, the super-champion club, consistently attracts the best players possible, which has a significant impact on branding and sales.

This is a bold and successful model.

The Revenue Generation Virtuous Cycle

The club has created a model in which, despite heavy investments and high costs, financial control and adherence to the budget are maintained.

The financial solidity of Real Madrid is the primary factor behind these years of impressive sporting success.

The club won all six possible titles this year!

Revenues – Real Madrid – € Million

Real Madrid's revenues surged with the titles from LaLiga and the Champions League. The club's budget projected revenues of € 940 million but exceeded this due to high on-field performance.

With revenues of €1.07 billion and football salary expenses of € 504 million, Real Madrid can be considered the highest-earning club in football, operating as a associative model without selling control to investors.

Real Madrid's football wages grew by 11% in volume but decreased relative to revenues, now representing 47% of the total. This is despite having stars like Vinícius Jr., Mbappé, Bellingham, Rodrygo, and many other talents.

Wages and % of operating revenues – Real Madrid – € Million

Over the years, even with significant investments, the club has consistently ended with a positive balance. While profits were higher in the past, the club continues to accumulate important profits.

Real Madrid has taken a confident step in renovating its Santiago Bernabéu stadium, which will boost revenues and profits in the coming years.

The club has accumulated € 204 million in net profits over the last 10 years and € 388 million over the past 15 years.

Net profits – Real Madrid – € Million

The Commercial Revenues and Massive Media Impact Strength

One of Real Madrid's strongest management points is its power in marketing and sales. Sponsorship contracts are increasingly valuable, fueled by a global club with massive media impact.

The more stars and titles, the more impact and revenue, making this football and entertainment machine work.

Real Madrid - Sponsorship contracts - Annual value + performance bonus- € million

*adidas includes merchandise sales

The club's commercial revenues now exceed € 400 million annually, with more than € 170 million coming from the adidas contract and merchandise sales alone.

According to data from KORE , Real Madrid is the leading sports entity in terms of impact on Instagram, the third on TikTok, first on Facebook, and second on X.

Another interesting study by SponsorUnited shows which clubs generated the most digital impact for their sponsors, with Real Madrid far ahead.

The club generated 291 million social media interactions for its sponsors, compared to 75 million for Manchester City, the runner-up.

The club knows how to generate returns for the brands that support it. Another great goal for Real Madrid!