Real Madrid has again claimed the title of being the only sports organisation to record yearly revenues in excess of Eur500 million as it announced financial results including a significant increase in net profit and reduction in debt.
The Primera División giant said that it closed the 2012-13 fiscal year with a turnover of Eur520.9 million, 1.3% more than in the previous period. Net profit stood at Eur36.9 million, a 52.4% increase year-on-year. Meanwhile net debt dropped by 27.4% to Eur90.6 million – a Eur34.1 million reduction on the figures from 2011-12.
The figures for the year ending June 30, 2013 do not take into account Real’s heavy spending in the recently closed summer transfer window – headlined by Gareth Bale’s world-record Eur100 million switch, along with significant investments in Asier Illarramendi and Isco for around Eur39 million and Eur27 million, respectively. However, the club will be boosted this season by its new five-year shirt sponsorship deal with Emirates, which is reportedly worth a guaranteed figure of Eur25 million per year, rising to Eur30 million depending on sporting results.
Real’s latest financial results come after it dethroned Manchester United in July as the world’s most valuable sports club in Forbes’ annual list of the 50 leading sporting institutions. Having already removed United from top spot in April’s football rankings, Real was crowned as sport’s No.1 in Forbes’ study of National Football League (NFL), National Hockey League (NHL), National Basketball Association (NBA), Major League Baseball (MLB), football, NASCAR and Formula One teams over the past year. Real was last year valued at US$1.88 billion, but this has now shot up to $3.3 billion.