Real Madrid‘s accounts are record-breaking: the club can boast of its financial muscle after presenting its latest results, with revenues of €1.185 billion in the last financial year, the second consecutive year in which it has exceeded €1 billion. These figures come at a time of uncertainty at the club in terms of sporting reinforcements for the campaign that is about to begin, as it seems that the club has closed its squad, but could it attempt one last signing before the transfer window closes?
Real Madrid’s profits
Real Madrid remains a healthy club, and for another year, it has brought in more money than it has spent, resulting in a profit. However, while total revenue amounted to €1.185 billion, the company’s net profit was €24 million. These profits must be added to the club’s cash flow, which stood at €166 million at the end of the financial year, which, at first glance, would seem to indicate that Real Madrid could make new signings for next season if Florentino Pérez deemed it appropriate.
But there is more: Real Madrid currently has an unused credit line of €425 million. The sum of the cash reserves, plus the net profit, plus this credit line, results in €615 million to cover any sporting expenses the club may need.
Real Madrid signings
In Real Madrid’s latest financial statements, the signings of Huijsen, Mastantuono, and Alexander-Arnold have already been accounted for, amounting to around €194 million, with the Club World Cup in mind. These expenses do not change the club’s projected image and continue to reflect the club’s balance and ability to maneuver in order to meet expenses.
However, there is another factor that must be taken into account when signing players, and that is the wage bill, i.e., the money allocated to signings. In this regard, the club can also flex its muscles, as this expenditure currently stands at 43% of income, below the 50% that the club considers optimal, and well below the 70% that would be a warning sign according to European football regulations.
Can Real Madrid sign new players?
Real Madrid could go to the transfer market, it has the money to do so without jeopardizing the club’s finances, but we must take into account the points outlined above. Real Madrid could make a signing of between $100 million and $150 million without upsetting the club’s accounts and maintaining a prudent spending policy that has allowed it to flex its financial muscles compared to other clubs. But if the club had to make a bigger move, it could do so without any problems, as it has unused credit that would give it the financial capacity to make almost any signing it wanted.
However, the club does not want to do anything crazy and does not want to be involved in the excessive spending that comes with signing a superstar. This would be the case with the midfielder the club wants, where the options being considered would involve investing no less than €150 million, and with what has already been spent, it seems that this is more than enough for Florentino Pérez, who does not want to deviate one iota from the roadmap he has been drawing up and implementing for years.