Real Madrid recently made headlines by announcing that they have become the highest revenue-generating football club in the world. Surpassing the impressive milestone of €1 billion ($1.08bn) in takings during the 2023-24 financial year, the club has set a new standard in the world of football finances. The revenues for the campaign reached an astonishing €1.073bn, representing a significant increase of €230 million from the previous year, marking a remarkable 27% growth rate.
Despite the challenges posed by the ever-evolving landscape of football finances, Real Madrid managed to close out the 2023-24 financial year with after-tax profits of €16m. This figure represents a 32% increase from the previous season, highlighting the club’s ability to maintain a profitable trajectory. With a net equity of €574m, Real Madrid continues to demonstrate sound financial management and stability amid the competitive environment of modern football.
Forbes, a reputable source for assessing the value of sports teams, valued Real Madrid at $6.07bn last season. This valuation not only positioned Real Madrid as the most valuable football club in the world but also ranked them as the 11th most valuable sports team overall. In comparison, Manchester United, another football powerhouse, was ranked 13th by Forbes with a slightly lower valuation of $3bn. The likes of the Dallas Cowboys and the New York Yankees topped the list with valuations of $9bn and $7.1bn, respectively.
Real Madrid attributes their financial success to a consistent growth strategy that has been in place since the turn of the century. Despite facing challenges in certain areas, such as lower broadcasting rights revenues in the 2023-24 season compared to the previous year, the club’s overall performance remains strong. With recent signings like France star Kylian Mbappé on a free transfer, Real Madrid is optimistic about achieving record figures in the upcoming 2024-25 financial year.
Real Madrid’s dominance in revenue generation within the football industry is a testament to their strategic approach, financial stability, and ability to capitalize on opportunities in the market. As the club continues to set new standards and achieve impressive milestones, it remains a force to be reckoned with both on and off the pitch.