Football.- Real Madrid partners approve the accounts for the 19-20 year and the 20-21 budget
MADRID, 20 Dic. 2020 (Europa Press) –
The Real Madrid members almost unanimously supported the club’s accounts for the 2019-2020 financial year, the budget for the 2020-2021 season and maintaining the social quotas for the 2021-2022 campaign, during the celebration this Sunday of the General Assembly Ordinary and Extraordinary Representative Members of the entity.
President Florentino Pérez and his Board of Directors saw their confidence in the accounts of the current LaLiga Santander champion strengthened, at a sensitive time due to the coronavirus pandemic, which have caused a reduction of 13 percent (106 million euros) in income from last season. Last season’s accounts were approved by 1,830 votes in favor, 3 against and 3 abstentions.
“They are numbers that are not as brilliant as other years, but they give the same merit in management and help to keep us in a leadership position in world football,” said Pedro López Jiménez, third vice president and treasurer of Real Madrid.
The manager blamed “the revenue crisis after years of growth” because all teams are “contracting” and that “the transfer markets have weakened deeply.” “All of this is causing widespread losses,” he warned.
In this sense, he stressed that the impact of the coronavirus “has worsened in the big clubs because they are the ones that drag interest in football through televisions and 70 percent of their budgets are in expenses related to the sports staff. and that logically they are much superior to the rest “.
“And due to the egalitarian policy in the distribution of results in relation to sports broadcasts, it makes medium and small companies cover their budget with them, which does not occur in the large ones,” he added, emphasizing that “the pandemic has emphasized the imbalance in the structure of football “.
López detailed the accounts for the 2019-2020 exercise, putting the impact of the coronavirus on the treasury at 154 million, which caused “cost saving measures”, with about 36 million in the salary reduction agreed with the football and basketball squads and the executive part, and a “new financing through loans guaranteed by the ICO for an amount of 155 million”, which allowed an “improvement in the treasury of 169 million”.
In addition, operating income went from 757 to 175, falling “for the first time slightly in the last 20 years” also due to the pandemic. “Otherwise they would be in the line of 822 million,” he warned. EBITDA is around 177 million (176.9), “slightly higher than the previous one (176.3)”. “And that shows the operational efficiency of the club and its responsiveness,” he admitted, also emphasizing “pride” in paying more than 286 million to the State in tax obligations and with Social Security, “a particularly noteworthy figure.”
Regarding investments, he stressed that it has been “strong” in terms of the acquisition of players “between the last two years”, and that the net worth of 533 million maintains “continued growth in these 20 years and is the shield” that helps them face “with serenity the impact of the pandemic”.
The net debt, also without taking into account the stage, is 241 million, although López believes that “it would have been 87 without the pandemic” and the EBITDA-debt ratio is an “acceptable 1.4”, with a “70 per cent “because of the coronavirus.
Finally, the Madrid vice president, who also recalled the “extraordinary expenditure of 3.3 million for medical supplies” during the crisis, referred to the profit of 313,000 euros that the accounts show. “This would be a draw in a very difficult match and tracing an adverse result,” he warned.
Regarding the proposed budget for this 2020-2021 season, with an expected income of 617 million, the partners also gave their approval almost unanimously with 1,797 votes in favor, 5 against and 11 abstentions.
Pedro López Jiménez indicated that this forecast is “25 percent less” in comparison with those of 2018-2019 and that it is caused “by the uncertainty about what it will generate from here to the end” in terms of public input. “If the pandemic did not exist, and applying a growth similar to that of previous years, we would have been able to estimate, hypothetically, that revenues would be 300 million more,” he said.
Finally, the Real Madrid partners also supported the maintenance of the social quotas for the 2021/2022 season by 1,800 votes in favor, 6 abstentions and 4 against.