July 15, (THEWILL) – Former La Liga champions Real Madrid have announced a €300 million loss in the presentation of their accounts from the 2020/21 fiscal year, ravaged as it was by the coronavirus pandemic across board.
The COVID-19 enforced lockdowns which came into effect in March 2020, when La Liga Santander suspended the season and the Estadio Santiago Bernabeu doors were shut were hugely responsible for the deficit.
That was the last time Los Blancos ventured into that traditional home of the Spanish giants as the stadium is presently undergoing extensive renovations and no games have been played there since the resumption of football activities.
Real included in the presentation that, as of June 30, 2021, the total balance in their treasury stood at 122.1 million euros. This was a lower sum than what they had at the same time last year, which was 125.3m.
A key detail absent from the presentation of the club’s account was the renovation project at the Bernabeu. The project is being financed by a loan organised on June 30, 2021, for €375m though the entirety of the project will cost about €279 million euros.
As for the club’s fortunes, the presentation was a perfect foil for the club management to couch the current net worth, which stood at €534m. A part of the presentation highlighted money-saving tactics the club had to employ to stay financially buoyant and keep that much worth, like cuts made to the salary scale and costs.
There was a realistic prediction that, “The recovery from the situation brought by the pandemic will not be immediate. As a result, the club will continue in its efforts to limit spending as has been done until now.”
The presentation also showed post-tax profits, with a balance of 874,000 euros, with Real having ended the 2019/20 year with a profit of €313,000.
There was a moment of boastful self-appreciation in the part of the presentation where Real noted: “The club are one of very few big European clubs to have not incurred losses over the last two years. According to a UEFA study, the operating losses accumulated by European clubs between 2019/20 and 2020/21 will be close to six billion euros.”
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
