REAL MADRID C. F. CLOSES THE 2020/21 FINANCIAL YEAR WITH A POSITIVE RESULT OF 874,000 EUROS

The Board of Administrators of Actual Madrid C. F., gathered as we speak 14 July, has authorized the annual accounts for the 2020-2021 monetary 12 months.

The consequences of the healthcare disaster attributable to Covid-19, which began in March final 12 months, have continued all through the 2020/21 monetary 12 months, with all matches having to be performed behind closed doorways. This has led to a lack of income in all traces of enterprise, primarily for the stadium, as there isn’t a revenue from match attendances, but additionally for TV rights, each from LaLiga and UEFA, and industrial actions, each within the operation of amenities and in retail gross sales and sponsorship.

As in comparison with the state of affairs previous to the pandemic, the lack of revenue that the Membership has incurred in its completely different traces of enterprise from March 2020 to 30 June 2021 is roughly €300 million, to which must be added the lack of new income that might have been obtained within the absence of the pandemic.

This lack of revenue has solely been compensated by the Membership by the applying of intense cost-saving measures in all areas:

-Participant price financial savings plan: in 2020/21 there have been no acquisitions and participant terminations have taken place, with a consequent impression on each switch capital positive factors and value financial savings.

-Discount in wage prices: in each 2019/20 and 2020/21, members of the primary squads in each soccer and basketball and main executives within the numerous directorates have agreed to voluntarily cut back their annual remuneration by 10%.

-Operational price financial savings plan: Along with the discount in spending as a result of decrease prices related to the lack of revenue, the Membership has additionally applied, over the fifteen months of the pandemic, a price financial savings plan for the assorted actions and providers contracted, which has resulted in an extra discount in spending equal to nearly 25% of the whole annual expenditure earlier to the pandemic.

In each 2019/20 (€177 million) and 2020/21 (€180 million), the Membership reported increased EBITDA than in 2018/19 (€176 million) earlier than the pandemic, however the close to €300 million income loss incurred in each years because of the Covid-19 impression. This can be a testomony to the Membership’s operational effectivity, and its means to reply by adopting cost-saving measures to mitigate these losses.

Because of the cost-saving measures taken to compensate for the lack of revenue because of the pandemic, the Membership will shut the 2020/21 monetary 12 months with a revenue of €874,000 after tax, in the identical approach because it closed the 2019/20 monetary 12 months with a revenue of €313,000. This makes the Membership one of many few main golf equipment in Europe that won’t have incurred losses in these two monetary years, on condition that, in response to a UEFA examine, the collected working losses of European golf equipment between 2019/20 and 2020/21 shall be near €6 billion.

The Membership want to commend the contribution made by sporting and non-sporting employees in implementing the cost-saving and enchancment measures which have made it attainable to attain these outcomes.

Because the Membership has made a revenue in each 2019/20 and 2020/21, regardless of the results of the pandemic, the Membership has managed to marginally enhance the worth of Fairness in comparison with the state of affairs as of June 2019 earlier than the pandemic, leading to a Fairness worth of €534 million as of 30 June 2021.

To be able to offset the monetary impression of the lack of revenue attributable to Covid-19, in April 2020 the Membership secured new financial institution financing within the quantity of €205 million, of which €155 million correspond to 4 loans with a 1-year grace interval and a 5-year maturity and €50 million to a credit score facility with a 3-year maturity. The operations had been independently formalised with the 5 nationwide banks with which the Membership operates and 70% of the quantity is roofed by the Official Credit score Institute (ICO), as a part of the federal government authorized line of credit score to facilitate the liquidity of firms. Throughout the 2020/21 monetary 12 months, and in accordance with RDL 34/2020 of 17 November, the Membership has extended the grace interval and maturity of the loans by 1 12 months.

The Membership closes the 2020/21 monetary 12 months with a money steadiness, as at 30 June 2021, of €122 million, excluding the stadium redemodeling challenge.

This steadiness has been achieved after repaying a €50m financial institution mortgage in the course of the 2020/21 monetary 12 months and with out the necessity to have a credit score facility steadiness.

The lack of revenue ensuing from Covid-19, with the ensuing impression on money move, has been compensated by the Membership by the financial savings measures and the formalisation of the above talked about €155 million long-term financial institution loans in April 2020.

As of 30 June 2021, the Membership has unused credit score amenities amounting to €361 million, which, along with its money steadiness, permits it to comfortably meet its anticipated fee commitments.

The Internet Debt as of 30 June 2021, excluding the stadium redemodeling challenge, quantities to €46 million, in comparison with €241 million the earlier 12 months, which signifies that, in the course of the 2020/21 monetary 12 months, the Membership diminished its web debt by €195 million.

Compared to the pre-pandemic state of affairs (30 June 2019: web money place of €27 million), the online debt as of 30 June 2021 is €73 million increased. This exhibits that the Membership has managed to compensate, by the applied financial savings measures, nearly all of the close to €300 million lack of revenue ensuing from the pandemic and its consequent impression on decrease money move and consequently increased web debt.

The Debt/EBITDA ratio stands at 0.3.All these figures exhibit the strong monetary state of affairs and excessive degree of solvency that the Membership maintains regardless of the pandemic.

Actual Madrid’s contribution in the direction of Tax and Social Safety revenues within the 2020/21 monetary 12 months amounted to €242.9 million.

In relation to the Santiago Bernabéu stadium remodelling challenge, within the 2020/21 monetary 12 months the constructing work has not been suitable with the internet hosting of matches on the Santiago Bernabéu stadium. It’s because, because the attendance of the followers was not permitted because of the Covid-19 pandemic, after acquiring the related authorisations, the Membership has been holding the primary crew soccer matches behind closed doorways on the Alfredo Di Stéfano stadium.

The quantity of the funding recorded within the 2020/21 monetary 12 months was €166 million, together with the monetary prices incurred in the course of the development interval. This brings the cumulative funding as much as 30 June 2021 to €279 million.

Throughout this monetary 12 months, in July 2020, the second drawdown of the mortgage amounting to €275 million was made; bringing the whole mortgage drawn all the way down to €375 million by 30 June 2021 (the primary drawdown of €100 million happened in July 2019).

2021/22 outlook

Concerning the upcoming monetary 12 months, stadium attendance is anticipated to return, though it isn’t but identified what share of the capability shall be allowed for use over the course of the season.

Concerning the monetary state of affairs, present forecasts recommend that restoration to the pre-pandemic state of affairs is not going to be quick. Due to this fact, the Membership will proceed with the fee containment efforts it has made thus far.