Sports Weekly: From a profit of 213 million to a loss of 312 million, Real Madrid's finances have achieved a "great reversal"

According to La Gazzetta dello Sport, Real Madrid’s net bank position has fallen from a surplus of €213 million to a deficit of €312 million. Financial analyst Hector Mohadaño explained that the dual investments in the Santiago Bernabéu renovation and star player policies are putting increasing financial pressure on this “non-shareholder” club.

The latest mid-term financial report released by Real Madrid has once again sparked public discussion about the club’s economic situation. Mohadaño noted that in just three years, this prestigious club has undergone significant changes—from having ample bank reserves to becoming more reliant on financing to sustain operations.

Data shows that Madrid’s net bank position dropped from a surplus of €213 million between 2021 and 2023 to the current deficit of €312 million. Mohadaño pointed out, “The club has exhausted the large cash reserves accumulated over the years.” These funds mainly came from financial agreements related to the new Santiago Bernabéu Stadium and the sale of some commercial income to entities like Sixth Street. Massive investments in stadium renovation and team roster development have directly led to the reversal of their financial situation.

Steady revenue, soaring expenses

In the first half of the 2025-26 season, Madrid earned €571.3 million, a slight decrease of 3.1% year-over-year. The revenue from the new Bernabéu Stadium, after rapid growth last year, has stabilized at around €43 million; however, the temporary suspension of concerts has limited further revenue potential from the venue. Additionally, commercial income has declined by over 10%, and TV broadcast rights revenue has almost stagnated.

Meanwhile, expenses have surged significantly. Within just half a year, total salaries increased from €239 million to €277 million, a nearly 16% rise. The signing of Mbappé and multiple contract renewals have been the main drivers of this growth.

Profitable operations continue, but financial pressure remains

Despite the overall deterioration of the financial situation, Madrid’s core football operations still generate profit. Mohadaño analyzed that the club’s half-year operating profit remains around €67 million. The problem is that a substantial portion of this profit is used to service debt—paying interest, stadium loans, and increasing sports-related expenses—greatly constricting financial flexibility.

Analysts believe that the current situation is not yet critical, but pressure definitely exists. “There are no repayment issues per se, but certain aspects have led both the club and financiers to take measures to protect themselves,” Mohadaño added.

Unlike ordinary companies, football clubs lack shareholders who can inject capital when needed. When faced with difficulties, Madrid’s options are limited to either borrowing more debt or selling players. Mohadaño also left a note of caution: “Or perhaps there is some other route worth considering?”