As a Football fan, it is typical to imagine how Real Madrid make money.
Real Madrid are one of the most successful football clubs in the world. Situated in Spain, the Madrid-based establishment are arguably the envy of many football clubs thanks to their European pedigree. But aside from being renowned for bagging so many titles and accolades over the years, Real Madrid have always been known to charm some of the game’s greatest.
The likes of Zinedine Zidane and Cristiano Ronaldo to mention a few, have all donned the famous white strip and wowed the Santiago Bernabeu faithful. Attracting the best players in the world is easier said than done.
The allure, Real Madrid possesses, but where and how exactly do they get the financial power that has aided them in securing the services of the biggest football stars, both past and present?
5 Major Way Real Madrid Make Money
1. Matchday Revenue
Matchday revenue is the income generated from merchandise, ticket sales, concession, and other related activities. And for an establishment that boasts a stadium of 90,000 spectator capacity, Real Madrid are easily among the highest match day revenue generators in world football.
According to the 2021 edition of the Deloitte Football Money League, Real Madrid ranked second (108 million euros) on the list of football clubs that earned the most money from match-day revenue, just behind eternal rival Barcelona (126 million euros).
It is not news that Real Madrid launched an ambitious renovation of the Santiago Bernabeu back in 2019, a project that has cost the club millions of euros.
And according to Marca, the club intends to have the stadium ready for the start of the 2023/2024 season, when the stadium will be a multi-purpose arena, in addition to hosting football matches at the highest level in the world. According to a club source, Real Madrid expects the new Bernabeu to boost its revenue from 150 million euros to 400 million euros annually.
While this might not instantly catapult the Madrid-based club into the same financial fraternity as the oil clubs, it will surely inject more economic power to continue to seduce the best players in the world.
2. Title Bonuses
Real Madrid pocketed more than 100 million euros after winning the 2021/2022 Champions League title, according to AS. This amount was calculated by adding a variety of factor coefficients, round participation bonuses and promotion bonuses.
Real Madrid are serial winners and their incredible success on the pitch has led to additional revenue through title bonuses. And it would seem short-sighted to think that the biggest football club in the world will suddenly cease to win titles.
3. Commercial Revenue
Commercial revenue is everything related to the sponsorship and brand activities of an establishment. Real Madrid’s success on the pitch coupled with their large fan base and brand appeal, allow them to attract lucrative commercial partnerships and secure substantial revenue from these agreements.
According to Sportcal, Real Madrid’s total sponsorship revenue for the 2022/2023 season was over 302.3 million dollars, with the single biggest investment coming from Adidas, which is an agreement valued at 142.94 million dollars per year.
In total, the Spanish giants had sponsorship agreements with 34 brands in the 2022/2023 season, with their top five partners accounting for 80% of the club’s total income from sponsorship. Surely when the rejuvenation of the Bernabeu is complete, more commercial opportunities will ensue.
4. Player Sales
For many, ‘big spenders’ is what comes to mind whenever the name Real Madrid is mentioned. But the Spanish giants have also displayed some incredible efficiency in player sales in time past.
The likes of Cristiano Ronaldo and Angel Di Maria left for hefty fees, with the Portuguese exiting the Bernabeu for a fee larger than what he was procured 9 years prior.
According to Goal.com Real Madrid have made over 1.4 billion euros in outgoing transfers this century. Raking in numbers like these won’t stop anytime soon for the establishment of Real Madrid’s status.
5. Broadcasting Revenue
According to Statista in 2021/2022, Real Madrid earned around 320 million euros from broadcasting payments, winning both the Champions League and La Liga in the same season.
Real Madrid being one of the most popular football clubs in the world enjoys high demand and viewership for their matches. Real’s global prominence helps drive up the value of their broadcasting rights, allowing them to earn significant revenue from these deals.
With the signing of English superstar Jude Bellingham from Dortmund and the potential addition of Kylian Mbappe, The Bernabeu is sure to enjoy a significant boost in prominence and all the good things that come with it.
An Excellent Business Man as The President
Florentino Perez is a household name in the football world. Not as a player or manager, but as a club president. The Real Madrid boss is widely considered one of the best club football presidents of all time and it’s easy to see why.
Under his tremendous leadership, the club has won numerous domestic and international titles. Off the pitch, the Real Madrid boss has been lauded for his ability to attract global brands to associate with the club and for elevating the club’s brand value.
According to Tribuna, Perez’s swift action during the Covid-19 pandemic helped Real Madrid stay financially stable despite a significant drop in income from ticket revenue. Perez won’t remain at Real Madrid forever, but that’s a matter for another day.
As long as he remains at the helm, the Bernabeu faithful surely have nothing to worry about as they can always rely on the excellent leadership of the legendary president.
All top football clubs probably generate revenue via similar routes. What set one apart from the other is exactly how much money they generate.
With all of their history and allure amongst other characteristics, Real Madrid are surely one of the leading names in world football when it comes to making money.
Final Thought
All in all, we can say that how Real Madrid make money is not strange; match day revenue, Title bonuses, Commercial sponsorship, player sale, and Broadcasting revenue are the major sources of income for the club.
All of these plus thier immense success on the pitch make Real Madrid one of the richest clubs in world Football.
