Real Madrid 2010/2011 Finances

I almost feel pity for Stoke fans.Having to console themselves with being financially ahead.
Who the hell gives a damn?
Bottom line is.Come Clasico time there is going to be just one team ahead.
Despite all the financial results,the CR shirt sales Stoke are still going to get whipped.

sportsczy wrote:

EarlyPrototype wrote:

McLewis wrote:Any particular reason this is in the Gen Section and not the RM section?

Yeh called showing off.

And the Man U guys posted theirs a few weeks back... no reason we can't post ours. Besides, it's always fun to remind Barca fans that, despite their success, they're still broke lol.

Well, MARCA posted a article were it said that barca were the club with the highest revenue in the world. El Barcelona consigue el récord de ingresos en una temporada


So, I wouldn't say that barca is broke..

FFP won't hurt barca with monsieur Platini in charge.

Nothing to add Sport, I will just be repeating myself at this point.

Anti-DNA wrote:FFP won't hurt barca with monsieur Platini in charge.

Nothing will happend to real madrid either, for as long as sepp blatter is the president of fifa..

harhar11 wrote:

sportsczy wrote:

EarlyPrototype wrote:

McLewis wrote:Any particular reason this is in the Gen Section and not the RM section?

Yeh called showing off.

And the Man U guys posted theirs a few weeks back... no reason we can't post ours. Besides, it's always fun to remind Barca fans that, despite their success, they're still broke lol.

Well, MARCA posted a article were it said that barca were the club with the highest revenue in the world. El Barcelona consigue el récord de ingresos en una temporada


So, I wouldn't say that barca is broke..

Revenue is not the same as profit FYI.

It's great to see this...
Not only is Real Madrid a top club, right amongst the top 5 in the world at least, but it runs on a financially sustainable model.
The credit must go to Perez though, cuz I know a lot of peeps hate him...

McLewis wrote:

Crimson wrote:

McLewis wrote:

sportsczy wrote:

EarlyPrototype wrote:

McLewis wrote:Any particular reason this is in the Gen Section and not the RM section?

Yeh called showing off.

And the Man U guys posted theirs a few weeks back... no reason we can't post ours. Besides, it's always fun to remind Barca fans that, despite their success, they're still broke lol.

Art Morte is not a United fan.

Hi McLewis

What's good with ya, Crim?

atm whats good is me staying out of the arguments in this thread lmao

Is Madrids model really worth it?
Utd made 30m pre tax profit last year ffs, look at Madrids. Thats without the new training kit sponsorship added in yet.
Those figure look impressive but its a false pride, their operating costs must be huuuuge.
Utd dont even bother with merchandising, we out source it instead. the profit margin isnt worth it

cyberman wrote:Is Madrids model really worth it?
Utd made 30m pre tax profit last year ffs, look at Madrids. Thats without the new training kit sponsorship added in yet.
Those figure look impressive but its a false pride, their operating costs must be huuuuge.
Utd dont even bother with merchandising, we out source it instead. the profit margin isnt worth it

That includes reducing our Net debt by 30.6 percent.....

we cut our debt by 25 odd % AND paid £51.7m in interest at the same time which is a combined 120m Pounds.. 145m euro (?) and we spent more than you in transfer fees.
I dont see why Madrid go through all the hassle tbh

cyberman wrote:we cut our debt by 25 odd % AND paid £51.7m in interest at the same time which is a combined 120m Pounds.. 145m euro (?) and we spent more than you in transfer fees.
I dont see why Madrid go through all the hassle tbh

We have the second highest wage bill in football and merchandise and marketing accounted for 31% of our turnover so it must be worth it....

Despite all this we still reduced our Net debt by 30.6% and turned over a net profit of 31.6m

Add in the fact we are turning over the most money in any sports institution on the planet and breaking records year after year at that, we must be doing something right.

Even if you take away all of our TV money we would still be 4th in football.

Other clubs can't compete, now we just need to win some trophies lol

We will soon have a new shirt sponsorship deal with either Bwin, or it's likely that Fly Emirates put some hard cash on the table to sign us.

Not to mention our new shirt deal with Adidas that his likely to bump up to 50M or a potential deal with Nike.

St_Nick09_of_Goal wrote:We will soon have a new shirt sponsorship deal with either Bwin, or it's likely that Fly Emirates put some hard cash on the table to sign us.

Not to mention our new shirt deal with Adidas that his likely to bump up to 50M or a potential deal with Nike.

madrid with nike would just be odd.

lol i didnt mean to turn this into a pissing contest...

Nike replaced Umbro in 2002 and United have received £303m over the course of the tie-up. But Florida-based owners the Glazers have seen the deal dwarfed in recent months and want to ensure their club are the top earners again. A United insider said: "The club have made big efforts on the commercial side over the last 12 months but the kit deal is the real big one. "The Glazer family are well aware what United's brand is currently worth. "It's not gone unnoticed that kit deals have been taken to another level since the club entered into our original agreement." The Glazers remain focused on paying off debt and could yet be attracted by rival interest should Nike not deliver Nike recently signed a £38m-a-year deal with the French national team to cover the next seven years, while Barcelona also rake in £26m annually. United, whose global stars like Ji-Sung Park and Javier Hernandez help to sell millions of shirts worldwide every year, are well aware...

e flagship sports franchise for Nike. Sport of the World understands the club are "delighted" with their on-going relationship with the firm and hope to have something new in place by the middle of next year. But the Glazers remain focused on paying off debt and could yet be attracted by rival interest should Nike not deliver. It is believed a new benchmark figure will be closer to £40m a year and rising over the course of a new decade-long deal.

Thread derailed already.

[quote="Crimson"][quote="cyberman"]we cut our debt by 25 odd % AND paid £51.7m in interest at the same time which is a combined 120m Pounds.. 145m euro (?) and we spent more than you in transfer fees.
I dont see why Madrid go through all the hassle tbh

[/quote]

We have the second highest wage bill in football and merchandise and marketing accounted for 31% of our turnover so it must be worth it....

Despite all this we still reduced our Net debt by 30.6% and turned over a net profit of 31.6m

Add in the fact we are turning over the most money in any sports institution on the planet and breaking records year after year at that, we must be doing something right.

Even if you take away all of our TV money we would still be 4th in football.

Other clubs can't compete, now we just need to win some trophies lol[/quote]but look at your net profit, of course others can compete

All those record numbers are offset by ridiculous operating costs. I could sell my car for 100k but if it cost me 99K to maintain...

If the money hungry glazers dont think producing their own merch is worth it then its really not lol.
Again this isnt a pissing contest.. we could argue this for weeks but come December Utd will probably be debt free with a fortune in the bank.. by IPOing only 25 to 30% of our worth ( Official clearance came today).
In context, thats around 600m pounds, almost worth what Madrid are in its entirity lol.
Thats why i say that Madrid would be better off focusing on Utds type model, if La Liga gets any worse financially and effects Madrids margin, those costs could bite Madrid in the ass.
Its mind boggling to me that Madrid have to earn so much to record fractionally more profit than debt ridden Utd

Wow, how can people argue about money... Numbers don't lie.
Not to mention it's outright stupid, imho, to try and make clubs' revenue streams / profits a subject for "competition".

Real Madrid's revenue was €480m.
Manchester United's €382m.

End of story.

The Franchise wrote:Reminding Barca fans we are broke? None of us care lol

We continue to buy players and more importantly, we win things.

Keep the money, we will have the titles thanks lol

sportsczy wrote:When FFP kicks in and La Liga TV rights are pooled (both inevitable), Barca is dead financially. You guys better hope that the academy produces big time players because, after next year, big transfers will be impossible for the club. From a longevity standpoint, Barca can't keep up under their current business model.

As for Madrid, we will always be among the elite. As throughout our history, we very rarely go through bad times because we're so solid financially.

I said before, that R. Madrid is going to push hard for the TV revenue money to be distributed evenly across the field because Baca is such in debt that it relys heavily on its current cut. Real Madrid has a royal backing and even without the TV money they would still be rich. Mardid's real chance to sink Barca heavily is to pull for them to lose there cut from the tv rights and Barca would be screwed and might even be forced to start selling some of there stars to get them out of debt.

All in all, I am a Barca fan but also a La Liga fan. I do hope for the TV money to strengthen ALL the teams not just 2. I dont really enjoy a 2 horse race, but I fear if Barca were to weaken from losing its money then La Liga would turn in to a 1 horse race with R. Madrid running around unstoppable for a while, until the rest of the clubs can get out of debt and start spending without worries.

But until then, keep bragging about your profits and your one shattered trophy it go you spending all those millions.

Very reasoned post windkick.

Even Madrid would need to adjust because i think it would result in a minimum of 60 million less in revenue year... we would need to decrease our expenses by around 25-30 million a year just to break even at that point. Effectively, it would make it impossible to carry high-priced WC players on the bench and we would need to rely on our castilla system and our scouting of untapped talent to cover our squad depth, which are both a good thing for La Liga and football in general.

The current financial model for the Madrid and Barca are not sustainable and that is clear if La Liga is to survive. However, as you pointed out, Madrid is in a much better position to cope with the decrease in TV revenue both from an operating profit standpoint and a balance sheet one. Barca would need to make much more painful adjustments.

I think both Madrid and Barcelona could cut their wages while still retaining the same competitive level. Who is going to move out from these two clubs because of better wages anyway (barren the odd Yaya Toure or something like that)?

Madrid's wages are at around €210m as far as I know and Barca's €230-250m. As a comparison, England's top wage bill falls for Chelsea at around €180m.

Bottom line: Both Barca and Madrid can live quite comfortably with a smaller budget than their current ones. If they just prepare for it, they should do just fine with a smaller TV revenue (unless Barca struggle with their debt too much).

[quote="Art Morte"]Wow, how can people argue about money... Numbers don't lie.
Not to mention it's outright stupid, imho, to try and make clubs' revenue streams / profits a subject for "competition".

Real Madrid's revenue was €480m.
Manchester United's €382m.

End of story.[/quote]

Facepalm

Numbers dont lie? 100m more revenue... they must be waaaaay in front of Utd etc in profits....
What? theyre only a O Shea fee in front?

Ill repeat so the condescending end of story brigade can understand... in house merchandising isnt worth the trouble due to operating costs. FFS Madrid based their transfer policy on it.

Guarenteed money from out sourcing is just as profitable with non of the workload

Cyberman, we're not a privately owned club persay. We are owned by the "socios", who are the season ticket holders (requirement). It's basically a membership. The club is obligated to spend all of its monies for the betterment of the club. The profits cannot be distributed. It's basically a for-profit organization that is run like a non-profit.

The president is elected by the socios for a set term.

You will never, ever see Madrid generate big profits because it's against the club mandate to retain cash if it's unnecessary for operations. It would either need to be used to pay off debt or to invest in the club. We could easily generate over $100 million in profits if it was a privately-owned entity.

Barca is under the same system as Madrid btw.

So, as long as the club has a sustainable amount of debt and a modest profit, we are running optimally.