Sport News: Real Madrid overtakes Man Utd as biggest-earning club in the world

0 KIKI GIST Saturday, October 08, 2016

The Spanish giants confirm another very strong year off the pitch as their earnings go over €600 million for the first time, despite an overall decrease in profit

Real Madrid have claimed the mantle of the highest-earning club in world football after posting record revenues in their latest financial figures.
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The European champions saw revenue rise by 7.4 per cent in 2015-16 to €620 million, eclipsing the figures recorded by Barcelona and Manchester United.

Barca’s total of €679m included player sales (thought to amount to approximately €67m), unlike that of Madrid, while United brought in €570m when their latest records were released in September.

Madrid have also wiped out €96m of debt but profit decreased by 22.5%, from €55.9m to €43.3m.

A club statement read: “The Real Madrid board of directors have agreed to call an ordinary general assembly for October 23, 2016.

“The corresponding results for the 2015-2016 season which will be submitted for approval are as follows: Operating revenues for the financial year 2015-16, without taking into account capital gains obtained as a result of player transfers, have topped €600m euros for the first time, reaching a figure of €620m, a 7.4% increase on the previous financial year.

“The operating result before repayments and player transfers (‘recurring EBITDA’) has risen to €163.2m, which is the highest figure ever reached by the club, representing a 26.3% increase on revenue figures and a rise of 20.9% on the previous financial year. This improvement in profitability is due to an increase in revenues having subtracted operating expenses and provisions corresponding to risks and contingencies.

“A pre-tax profit of €43.3m has been recorded, which is 22.5% less than the previous financial year. This is due to the non-recurrent effect of player transfers, despite the operating improvements recorded. After achieving a net profit (after tax) of €30.3m, net worth has risen to €442.2m.

“The cash balance has risen by €102.6m to reach a figure of €211.5m, thanks to higher cash flow generated by operations and restraints on investments.

“As a result of the increase in liquid assets and the reduction of creditor balances by investments, the net debt has fallen by €108.9m to sit at a figure of €-13.1m, which in reality represents not a debt but rather a net liquidity position. Therefore, multiples of debt over EBITDA and net worth have been reduced to zero, indicating a position of maximum solvency.”