Real Madrid says sales will rise even as Spain enters recession

Published: Wednesday, Dec. 3, 2008 11:19 a.m. MST
 |  E-MAIL | PRINT | FONT + - 

Real Madrid, soccer's richest club by revenue, said it expects sales to rise 9.4 percent in fiscal 2009 even as Spain heads into its first recession in 15 years.

Increased revenue from broadcast agreements and luxury boxes will help lift sales to 400.2 million euros ($505 million) for the year ending June 30, according to a copy of accounts sent to club members. Pretax profit will rise 6.6 percent to 54.8 million euros.

Real Madrid overtook Manchester United in 2005 as top- earning club as rated by Deloitte & Touche LLP. The Spanish club is bucking a slowdown in its home country that began in construction and spread to the rest of the economy. The recession has left rivals including Valencia and Deportivo La Coruna struggling.

"The club has made a big stride in achieving completely balanced revenue" from television, its stadium and marketing, Real Madrid said in notes accompanying the accounts, which need approval by club members at a Dec. 7 meeting. The team is owned by 92,000 members.

Real Madrid paid 11 million euros in bonuses on top of a wage bill of 140 million euros to a squad including Fabio Cannavaro and Ruud van Nistelrooy for winning a second straight Spanish championship last season, the accounts show.

Story continues below

The team has dropped to fourth in the current standings, six points behind Barcelona.

It agreed to sign striker Klaas Jan Huntelaar from Ajax yesterday for as much as 27 million euros, taking spending on player acquisitions to 433 million euros in four seasons. Huntelaar replaces Van Nistelrooy, one of 11 players out injured.

Some teams are reeling from the construction slump. Juan Bautista Soler, a real-estate developer, sold Valencia in September and Deportivo La Coruna hasn't been able to replace collapsed developer Martinsa-Fadesa SA as its jersey sponsor.

Recent comments

The total global soccer economy amounted to $250 Billion in 2004 and...

Sports economist | Jan. 15, 2009 at 2:01 p.m.

Just wondering.

Who cares? | Dec. 23, 2008 at 1:57 p.m.

Real Madrid also has a basketball team.

Real Madrid will at least...

Little known fact | Dec. 4, 2008 at 8:31 p.m.

previousnext

Latest comments

BYU football: 2010 commitments

While reading most of the comments by the fans of BYU and Utah, one could say...

It's going to be funny in 20 years when all this seems stupid, and you are on...

When I can finally establish in every moment of my life peace, forgiveness,...

Same can be said about the beauty parlor, or any other place where we shed...

Reading all of this makes my heart wrench. I was raised LDS and I have been...

I'm sick of the articles saying he's like every other man with temptations....

2 men cited in trespassing on LDS plaza

To the 7:04 commentator, They are also married. Beyound that, what...

lets go dig it up they're not indeginous to here or related to us. but i...

That is a terrible lead! When did this happen? What does this picture from 10...

"Who are you calling a pedophile? While I do believe Mr. Pratt is guilty of a...

Advertisements