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After splashing the cash to buy expensive new players, the Spanish giants now owe the banks...

Real Madrid have revealed that they are €327 million in debt after a massive summer spending spree was authorised in order to rebuild the squad for the new season.

Club president Florentino Perez told the annual general assembly at the weekend about the huge deficit that Los Merengues now have thanks to the transfer fees paid.

With around €250m spent on Cristiano Ronaldo, Kaka, Karim Benzema, Xabi Alonso and Raul Albiol, Madrid have defied the economic slump to try and regain some silverware this term.

"We're going through a delicate moment with the world financial crisis, but we had to make a big effort for the new arrivals of players, which explains the debt," Perez announced.

Despite the quantity that Madrid owe, the members are not worried, approving a record breaking budget of €422m for the current campaign.

However, Perez explained that projected revenue will increase on previous years and should see the debt reduced to €210m.

Lucas Brown, Goal.com

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