Real Madrid to be the World's Wealthiest Club

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The Primera Liga club is now the world's richest football club measured by turnover, overtaking English Premier League club Manchester United. According to the Spanish club’s latest published financial results for the 12 months to 30 June 2005, the club enjoyed an income of EU 275.7m, a 17% increase on the previous year. In contrast, Manchester United’s most recent published full year figures - for the 12 months to 31 July 2004 - showed a 2.3% earnings drop to EU 245m. However, since the takeover of Manchester United and its delisting the English club’s figures do not have to be revealed.

The Spanish club’s substantial income growth has permitted it to retain its economic independence, according to club president Florentine Perez. "We want Real Madrid to remain a club that belongs to everyone," Perez announced at a members' meeting. "But in order to compete with clubs that have owners who give them all the money they want we have to adopt an economic model that will give us enough income to cover all our outgoings. Our aim is to be a universal club and that means attracting more fans from around the world to make us stronger. Real Madrid is not obsessed with economic results alone, but our economic stability will guarantee our freedom in the future." Perez, who heads one of Europe's most powerful construction empires, said that the club's ordinary income had increased by almost 17% in the 2004/2005 season and was expected to rise by another nine percent in the current campaign.

Nearly 45% of income was generated through marketing with the club's commercial department helping post an after-tax profit of some EU6m last season. "The accounts demonstrate the economic transformation that this club has undergone since the year 2000," said Perez. "Our economic power and the position of solvency in which we find ourselves have allowed us to make big improvements in our infrastructure and also sign some of the biggest names in football."

Over 95% of the members present at the meeting gave their approval to Perez's economic administration. The club’s accounts show investment of some EU 500m on new players since Perez took over five years ago, with salaries accounting for approximately EU 800m. Luis Figo, Zinedine Zidane, Ronaldo, David Beckham and Robinho are amongst the leading players that have joined since 2000. The spending spree was largely financed by the sale of the city centre training ground to the Madrid local authority for EU 480m. Real are in the process of constructing a brand new out-of-town training facility, part of which was opened last week, and have spent EU 127m on improvements to the Santiago Bernabeu stadium. Last season, salaries accounted for 52% of the club's income, although Perez said the figure was expected to drop to 47% for the present campaign.