REAL MADRID C. F. CLOSES THE 2019/20 FINANCIAL YEAR WITH A POSITIVE RESULT OF €313,000

After the Actual Madrid CF Board of Administrators’ assembly on 2 December, 2020, it has agreed to name an Strange Normal Assembly for 20 December, 2020, through which the outcomes akin to the 2019/20 season shall be submitted for approval, amongst different issues.
 
Within the financial sphere, the 2019/20 monetary yr has been marked in its final three and a half months by the results of the well being pandemic brought on by COVID-19 and it’s foreseeable that these results will persist all through the 2020/21 monetary yr.
 
By way of sporting outcomes, the primary soccer group gained the league title and the Spanish Tremendous Cup in 2020, whereas the basketball group gained the Copa del Rey trophy.
 
With regard to the Santiago Bernabéu stadium remodelling undertaking, in 2019/20 the works have been carried out as deliberate, compensating for the stoppage of exercise decreed by the Authorities within the interval from 30 March to 13 April with the best ease to hold out the works, which has meant that matches on the Santiago Bernabéu stadium haven’t been performed since 14 March. The collected funding quantities to €113.7 million and the primary drawdown of the mortgage for an quantity of €100 million has been made.
 
Likewise, the merger by absorption has taken place, efficient 1 July, 2020 and due to this fact already inside the monetary yr 2020/21, of the Membership Deportivo Tacón girls’s soccer, by Actual Madrid CF, a merger that had been accredited by the Extraordinary Normal Assembly held on 16 September, 2019.
 
The affect of COVID-19 has led to a discount in earnings of -13% (-€106 million), and as soon as the prices immediately related to stated earnings (€16 million) have been discounted, represents a lack of -€91 million brought on by COVID-19 within the 2019/20 monetary  yr.
 
To mitigate the affect of the misplaced earnings, the membership has applied value saving measures.
 
By way of personnel prices, the gamers and coaches of the primary Actual Madrid soccer and basketball squads, along with the primary executives of the totally different membership divisions, have voluntarily agreed to decrease their remuneration for this yr by 10% (this discount would have been 20% if the league competitors couldn’t have been accomplished).
 
Likewise, in working bills, a financial savings plan has been established via which an expense discount has been obtained, along with the one derived from the lack of earnings, equal to eight% of the entire annual expense.
 
After the cost-saving measures adopted to mitigate the affect brought on by COVID-19, the membership closed the 2019/20 monetary yr with an financial end in steadiness (€0.3 million).
 
In monetary phrases, the affect brought on by COVID-19 on the treasury as of 30 June, 2020 (-€154 million), is sort of 50% larger than the affect of decrease earnings, because the membership has to tackle, along with the lack of earnings indicated above, postponement of assortment of sure sponsorship contracts and membership charges.
 
To offset this affect, the membership obtained new long-term financial institution financing through the months of April and Could 2020, of which €155 million correspond to 4 loans with a maturity of 5 years and €50 million correspond to a credit score coverage with a maturity of three years. The operations have been formalised independently with the 5 nationwide banking entities with which the membership operates and are endorsed by the ICO inside the line accredited by the Authorities to facilitate the liquidity of the businesses.
 
As of 30 June, 2020, the membership has a internet price of €533 million, a treasury of €125 million (excluding the treasury of the stadium remodelling undertaking) and has funds accessible in long-term credit score insurance policies in sufficient quantity to fulfill its cost obligations within the troublesome financial setting that may prolong all through the 2020/21 monetary yr.
 
Actual Madrid’s contribution to Tax and Social Safety earnings within the 2019/20 monetary yr amounted to €286.4 million.
 
The membership contributed €3.3 million in donations for the acquisition of medical provides to fight the pandemic, destined for the Comunidad de Madrid, the Madrid Metropolis Council and the Centre for Well being Provides. The membership additionally made the amenities of the Santiago Bernabéu stadium accessible to the well being authorities as a warehouse for provides.
 
In 2020/21, revenues of €616.8 million are budgeted, which represents a lower of -14% in comparison with the 2019/20 monetary yr, which was already affected by the pandemic within the earnings of its final four-month interval, and of -25 % in comparison with the 2019/20 funds previous to the pandemic, which was €822.1 million.
 
The lack of earnings because of the impact of COVID-19 within the 2020/21 monetary yr impacts the totally different strains of enterprise, primarily within the stadium, the place earnings from match attendances has not been budgeted, and in industrial actions, the place it’s lowered to the Revenue from the stadium tour and retailers is minimally expressed, though there are nonetheless uncertainties in regards to the diploma of ultimate affect that earnings will endure relying on the evolution of the well being scenario till the tip of the yr.
 
If the pandemic had not occurred and the earnings development development of earlier years had been adopted, the funds for the 2020/21 season would have reached a determine near €900 million, that’s, a distinction near €300 million with respect to what was budgeted as a consequence of the pandemic.
 
Regardless of the financial savings measures which might be being applied, the after-tax outcome shall be considerably affected by this vital lack of earnings, though the membership will attempt to materialise alternatives for enchancment to attempt to steadiness the outcome as was achieved within the earlier yr.