Management Report &

Financial Statements
2023-2024
Management Report &
Financial Statements
2023-2024
 CONTENTS

Management
Report &
CONSOLIDATED
Financial
MANAGEMENT REPORT Statements
2023-2024
4
for the year ended
June 30, 2024

CONSOLIDATED Financial
Statements
38
for the year ended
June 30, 2024

Consolidated Audit
Report on the financial
statements
156
Economic information
of Real Madrid C.F.
162
Budget
2024/2025
166
2 CONTENTS 3
 CONSOLIDATED
MANAGEMENT REPORT
For the year ended June 30, 2024.

The Consolidated Management Report for Real Madrid

Club de Fútbol and Subsidiaries, including an analysis of its
earnings performance in 2023-2024, is presented below.

4 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 5

 KEY HIGHLIGHTS
OF 2023/2024

Corporate structure KEY HIGHLIGHTS OF 2023/2024 Thereby, in the latter part of the period, sales
of new products began, entailing events
As a result of the Santiago Bernabéu On the sports front, in the 2023/2024 season, and, more notably, new VIP seats in the
Stadium’s remodeling and the new scope the first division football team won the stadium. Notable the marketing beginning
for revenue growth it brings, and in a bid to Champions League, for the sixth time between of a new premium product linked to a small
optimize the management of the business 2014 and 2024, along with the La Liga and number of the new VIP seats. This product
regarding the marketing and operation of Spain’s Super Cup trophies. The first division generated considerable revenue and may be
the VIP area businesses, general seating basketball team won Spain’s ACB league, extended to other VIP seats in the stadium
capacity and the facilities on days when King’s Cup (Copa SMR) and Super Cup and going forward. All this was reflected in sharp
no matches are played, in 2021/2022 Real was the EuroLeague runner-up. growth in revenue from stadium business
Madrid decided to decentralize management in 2023/2024. Estimates call for further
and set up a wholly owned subsidiary, Real These performances resulted in higher revenue strong growth from this revenue stream
Madrid Estadio, S.L. and equip it with all the in 2023/2024, but also higher expenses, in 2024/2025, once all the businesses at
material and human recourses it needed for especially sports personnel bonuses. the stadium are fully operational following
the business development. completion of the remodeling work, which
The remodeling project continued throughout started in the summer of 2019 and continued
Likewise, in 2023/2024 a new company, the year, with works on the various structural throughout 2019/2020 to 2023/2024.
Aparcamientos del Santiago Bernabéu, S.L., components (facade, roof, retractable lawn)
was incorporated. Real Madrid, through completed gradually. As at the June 30, As illustrated, the remodeling work provides
Real Madrid Estadio, owns 98% of the share 2024 reporting date, the works related to a new and important source of revenue for
capital of this company, which primarily development of businesses (VIP area, tour, the Club, driving a sharp increase in revenue
engages in the performance of the concession RM Experience, events, catering, store), by the stadium on both match days and from
arrangement awarded by the Madrid Town which were one of the primary reasons the stadium’s daily commercial operation.
Council to build and operate two car parks, behind the remodeling project to begin with, Higher net cash inflows will allow the Club to
one on Paseo de la Castellana-Bernabéu and were still under way. pay off the remodeling investment, while it
one on Padre Damián. continues to grow and remain competitive in
In the year’s second half, work began on an increasingly tough international football
Finally, Real Madrid, for several years now, construction of the car park on Paseo de la environment.
owns 100% of Real Madrid Beijing Co, Ltd., Castellana. It is expected to be completed
set up to support Real Madrid’s expansion in within 18 months.
China and other countries in Asia.
Works on business development under the
Real Madrid Club de Fútbol, as parent, and remodeling project had yet to be completed
Real Madrid Estadio, S.L., Aparcamientos at the end of the reporting period. However,
Bernabéu, S.L. and Real Madrid Beijing Co, 2023/2024 did feature the gradual
Ltd., as subsidiaries, constitute the Group disappearance of the impact caused by them
(the “Group”) referred to in this consolidated on stadium availability in terms of seating
management report. Any mention of the Club capacity and commercial operation, along
in this report regarding financial data should with the steady and partial implementation
be understood as the Group. of actions to boost revenue.

6 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 7

 KEY HIGHLIGHTS
OF 2023/2024

Commercial activity was affected for years After including the gain on player disposals €156 million), yields a debt/EBITDA ratio
by the pandemic and the uncertainties carried out in 2023/2024 (€13 million, —one of the most commonly used solvency
surrounding the overall economic net of valuation adjustments), operating indicators— at June 30, 2024, of 0.1, which
environment. In 2023/2024, the Club boosted profit before depreciation and amortization is commensurate with a maximum credit
both merchandising and sponsorship (EBITDA) was €156 million, in line with the rating for financial institutions.
activities, with highlights including the 2022/2023 figure, which included a €73 million
new sponsorship deal with HP for uniform disposal gain; i.e., €60 million more than the
sleeves. The momentum in commercial current period. The huge losses incurred by
activity is set to continue and strenghten most European clubs due to COVID-19 and
in the coming years, underpinned by the the general trend in the transfer market have
Club’s strong brand, especially thanks to made it more difficult to carry out transfers
the composition of its sports personnel and for significant amounts, with an increasing
its sports achievements, not to mention the number of players seeing their contracts end
stadium’s remodeling. without being transferred.

Operating income (before disposal of The Club reported a net profit of €15.6 million
non-current assets) increased by 27% in in 2023/2024, an increase of 32% from the
2023/2024 to €1,073 million. Although the year-earlier figure. Against a backdrop of
stadium was not yet fully operational during widespread and hefty losses by the vast
the year, the Club still managed to become majority of Europe’s biggest clubs from
the first football club ever to surpass the 2019/2020 to 2022/2023, which continued
€1 billion mark in operating income before for several of the major clubs in 2023/2024,
disposal of non-current assets. the Club was profit-making in all five years
from 2019/202 to 2023/2024 during which it
This growth in revenue, after subtracting the had to overcome the impact of COVID-19,
increase in operating expenses related to this not to mention limitations arising from
revenue and from operating activities, and the stadium remodeling work. All this was
the increase in personnel expenses arising achieved by implementing measure to rein in
from sports achievements, left operating costs and improve the business all around.
profit before depreciation and amortization
and disposals of non-current assets (EBITDA The Club has now been profit-making in the
before disposals) of €144 million, up 71% last 23 years, enabling it to build up equity of
from the previous year. This metric of the €574 million as at June 30, 2024.
Club´s operational efficiency in 2023/2024
was nearly 80% higher than the average of The Club’s net debt excluding the stadium
the last 10 years. It is a testament to the remodeling project at June 30, 2024,
efforts undertaken by the Club to enhance amounted to €8 million. Comparing debt with
performance and growth of the business in the Club’s payment capacity represented by
all areas. ordinary cash flow (measured using EBITDA:

8 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 9

 OPERATING INCOME
(before disposal of non-current assets)

Operating income (before disposal of non- This item includes revenue from the various OPERATING INCOME
current assets) in 2023/2024 rose by 27% or business lines (stadium, international (before disposal of non-current assets)
€230 million from the year before to €1,073 and friendly matches, broadcasting, and € Million
million. Although the stadium was not yet marketing) and from other operating
fully operational during the year, the Club activities, but excludes revenue from player 1,073
still managed to become the first football transfers, which is recognized in the income 9.6% average
annual growth
club ever to surpass the €1 billion mark in statement under “Gains/(losses) on disposal
operating income before disposal of non- of non-current assets”.
current assets.
Club membership fees and season tickets
843
All business lines showed increases except in 2023/2024 accounted for 5.6% of total
broadcasting, where revenue from La Liga revenue (2022/2023: 6.1%), 16.5% in 2000,
751 757
was lower in 2023/2024 than 2022/2023. 9.7% in 2009 and 7.2% in 2018/2019, before 715 722
A key highlight was growth in market and COVID-19 and the start of the project. /19 675
018
stadium revenue. Regarding commercial un til 2 653
wth 620
activity, in 2023/2024, the Club boosted In the 2000-2019 period, before the ro
nual g 578
both merchandising and sponsorship pandemic, revenue grew at an average annual ag e an 550
ver 514 521
activities, with highlights including the rate of 10.3%. Because of the pandemic and %a
10.3 480
new sponsorship deal with HP for uniform the lost revenue caused by the situation in 442
sleeves. For the stadium, although all works 2019/2020, 2020/2021 and 2021/2022 and 407
for business development in the remodeling despite the recovery in revenue in 2022/2023 351 366
project have yet to be completed, stadium and the strong growth in 2023/2024, the
availability gradually increased in terms of 292
pace of average annual growth in 2000-2024 276
seating capacity and commercial operation declined to 9.6%. 236
during the year. Sales of new products began 193
in the latter part of the year, notably major Going forward, promoting the Club’s 152
138
events and a new premium product linked brand through investment in top players 118
to new VIP seats. All this was reflected and international expansion are still the
in sharp growth in revenue from stadium principal ways in which the Club can remain
business for the year, although it will not be competitive and maintain its status as a
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
until 2024/2025 that all the business at the global benchmark in football.
stadium are operating a full capacity. Finally, Stadium Int. & Friendly Matches Broadcasting Marketing
international match revenue was higher than
the year before after winning the Champions
League (2022/2023: semifinalist).

10 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 11

 BREAKDOWN OF PERSONNEL EXPENSES/OPERATING
OPERATING INCOME INCOME: EFFICIENCY RATIO
(before disposal of non-current assets)

The Club enjoys a balanced revenue mix, barring weight of marketing revenue has increased The efficiency ratio, calculated by dividing the The efficiency ratio in 2023/2024 was
the atypical situation in previous years affected along with stadium revenue as the remodeling Club’s total personnel expenses by operating below 50%, considered the threshold for
by COVID-19 and the temporary effects of the is completed. income (before disposal of non-current excellence, and well below the 70% maximum
remodeling work. assets), is the most widely used indicator level recommended by the European Club
This diversified stream of recurring internationally to measure a football club’s Association (ECA).
The three largest lines (stadium, television/ revenue lends financial stability to the operational efficiency. The lower the ratio, the
competitions and marketing) make up around Club, cushioning the impact of potential more efficient the Club. By increasing revenue and containing costs,
a third of total revenue, although the weight of fluctuations in revenue caused by varying the Club has been able to keep this ratio under
TV revenue in the mix (La Liga and Champions performance on the sports front or changes In 2023/2024, the ratio was 47%; i.e., an control and below the level recommended
League) has decreased gradually, while the in the economic landscape. improvement of 7 percentage points from the by the European Club Association over the
year before (54%) despite the impact of sports past 20 years, even during those affected by
titles. Stripping out this impact, the ratio would COVID-19.
be 44.5%, the Club’s lowest in several years.

BREAKDOWN OF PERSONNEL EXPENSES/

OPERATING INCOME OPERATING INCOME
(before disposal of non-current assets)

2023/2024
%
100%

90%
29% 90% 86%

1999/2000 40% 80%

72% 72%
70%

26% 32% MAXIMUM LEVEL RECOMMENDED BY THE EUROPEAN CLUB ASSOCIATION

€ 1,073 M 60%
52% 52%
60%
57% 57%
62%

54%
52%
49% 50% 49%
47% 48% 46% 46% 47%
€ 118 M 45% 46% 47%
50%
43%
40%

9% 14% 30%

20%

33% 17%
10%

0%

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Stadium
Int. & Friendly Matches
Broadcasting
Marketing

12 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 13

 OPERATING PROFIT BEFORE
DEPRECIATION AND AMORTIZATION
(EBITDA)

Operating profit before depreciation and 2023/2024 with 2021/2022 (€203 million) is OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION
amortization, or EBITDA, is the Club’s earnings shaped by the gain realized that year from the (EBITDA)
from operating activities after subtracting Sixth Street/Legends agreement (€316 million).
personnel and other operating expenses from € Million
the revenue obtained by the business lines, The average gain on player disposals from 220
including gains or losses on player transfers 2018/2019 to 2022/2023 net of valuation
203 203
and disposals of other assets. adjustments amounted to €75 million. 200

Noteworthy were the gains on player disposals 177 180

180 176
Player transfers among football clubs is hardly in 2019/2020 and 2020/2021 net of valuation
165 163
an exception, but rather part of the Club’s adjustments amounting to €127 million and 160 154 147 158 156
151 150
standard practice so that it can renew staff, €122 million, respectively, enabling the Club, 146
140 138
generating proceeds than can be used to self- despite the losses caused by COVID-19, to
finance part of the cost of new additions. deliver EBITDA of €177 million and €180 million, 120
respectively. These gains were far higher than 104 105 105
EBITDA before disposals; i.e., earnings from those obtained this year. This shows how 100
85 84
operating activities less personnel and other huge losses incurred by most European clubs 80
73
operating expenses, amounted to €144 million due to COVID-19 and the general trend in the
in 2023/2024, up 71% from the year before (€84 transfer market have made it more difficult to 60

million). This metric of the Club’s operational carry out transfers for significant amounts, with
40
efficiency in 2023/2024 was nearly 80% higher an increasing number of players seeing their
than the average of the last 10 years. This is contracts end without being transferred. 20

a testament to the improvements made by the 5

0
Club in terms of operational efficiency in terms The Club achieved annual average EBITDA of
of revenue relative to expenses thanks to efforts €175 million in all five years from 2019/2020 to -20
made to enhance performance and growth of 2023/2024 during which it had to overcome the -19
the business in all areas. impact of COVID-19, on to mention limitations -40

arising from the stadium remodeling work. This -60

-45
After including the gain on player disposals is a testament to its operational efficiency and 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

carried out in 2023/2024 (€13 million, net of ability to respond by taking measures to tackles
valuation adjustments), operating profit before difficulties as they arise.
depreciation and amortization (EBITDA) was
€156 million, in line with the 2022/2023 figure The Club’s EBITDA performance through the
(€158 million), which included a €73 million years is the result of a financial management
disposal gain; i.e. €60 million more than the that pursues profitability by combining efforts
current period. Comparison of EBITDA of to boost revenue and rein in costs.

14 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 15

 INCOME STATEMENT:
KEY HIGHLIGHTS

Operating income (before disposal of non- before disposals) of €144 million, up 71% Net finance expense in 2023/2024 was €2
current assets) in 2023/2024 rose by 27% or from the previous year (€84 million). This million, compared to net finance income in
€230 million from the year before to €1,073 gave an EBITDA before disposals/revenue 2022/2023 of €6 million. The main reasons
million. All business lines showed increases ratio of 13%, 3 percentage points higher than behind the increase in net expenditure are
except broadcasting, where revenue from La the year before (10%) and illustrating the the higher income obtained in 2022/2023 for
Liga was lower in 2023/2024 than 2022/2023. vast improvement in revenue and operational decisions in certain lawsuits in favor of the
A key highlight was growth in marketing and efficiency. Club and the higher expenses in 2023/2024
stadium revenue. Regarding commercial for the impact of the implied cost of deferred
activity, the Club boosted both merchandising After including the gain on player disposals payment on player acquisitions due to
and sponsorship activities. For the stadium, carried out in 2023/2024 (€13 million, net of the higher cost of discounting because of
although all works for business development valuation adjustments), operating profit before interest rates. The borrowing cost of the
in the remodeling project have yet to be depreciation and amortization (EBITDA) was stadium remodeling project financing in
completed, stadium availability gradually €156 million, in line with the 2022/2023 figure either of the last two financial years did not
increased in terms of seating capacity and (€158 million), which included a €73 million have any impact on the income statement
commercial operation during the year. Sales disposal gain; i.e., €60 million more than the since it was capitalized as an increase in
of new products began in the latter part of current period. the cost of the investment since the project
the year, notably major events and a new is still underway.
premium product linked to new VIP seats. Net profit is calculated as EBITDA after
Finally, international match revenue was depreciation and amortization, net finance In 2023/2024, income tax expense
higher than the year before after winning the income/(expense) and income tax. amounted to €4 million after applying a
Champions League (2022/2023: semifinalist). nominal tax rate of 25% to accounting
The depreciation and amortization charge profit before tax adjusted for impacts
This growth in revenue, after subtracting the in 2023/2024 was €20 million lower than of tax legislation and recognizing the
increase in operating expenses related to this in 2021/2022 due to changes in sports applicable tax credits. In 2022/2023, a
revenue and from operating activities, and personnel. The depreciation charge for tax refund of €3 million was obtained for
the increase in personnel expenses arising facilities was in line the previous year since the year, mostly the result of the impact
from sports achievements, left operating depreciation on the remodeling project had of non-tax-deductible income caused by
profit before depreciation and amortization yet to start because work was still ongoing at the resolution of certain lawsuits in favor
and disposals of non-current assets (EBITDA the end of the reporting period. of the club.

16 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 17

 TAX BALANCE: CONTRIBUTION
BY REAL MADRID TO TAX REVENUE
AND SOCIAL SECURITY

The Club reported a net profit of €16 million in to overcome the impact of Covid-19, not to Real Madrid contributed €277.1 million directly Real Madrid was current on the payment of all
2023/2024, an increase of 32% from the year- mention limitations arising from the stadium to state and local taxes, and social security its tax obligations as at June 30, 2024, as it
earlier figure (€12 million). Against a backdrop remodeling work. All this was achieved by in 2023/2024. The breakdown by item is as always has been.
of widespread and hefty losses by the vast implementing measure to rein in costs and follows:
majority of Europe’s biggest clubs from improve the business all around.
• €218.4 million paid in state and local income
2019/2020 to 2022/2023, which continued for
tax and social security, representing a cost of
several of the major clubs in 2023/2024, the The Club has now been profit-making in the
20% of the Club’s operating income (before
Club was profit-making in all five years from last 23 years, enabling it to build up equity of
disposal of non-current assets); i.e., for every
2019/202 to 2023/2024 during which it had €574 million as at June 30, 2024.
€100 of income, Real Madrid allocates €20 to
tax and social security payments.

• €58.7million in VAT paid to the tax authorities

(difference between output VAT charged to
customers and input VAT paid to suppliers),
arising from Real Madrid’s economic activity.

INCOME STATEMENT: TAX

KEY HIGHLIGHTS BALANCE
€ Million 2022/2023 2023/2024 Amounts paid during the 2023/2024 fiscal year € THOUSAND

operating income 843 1,073

Personnel income tax withholding and non-resident income tax (deductions from staff remuneration and image rights) 207,566
Annual growth 27%
INCOME TAX -5,727
OPERATING PROFIT before depreciation and amortizacion and disposal of non-current assets Property and other local taxes 972
(EBITDA before disposal of non-current assets) 84 144 SOCIAL SECURITY CONTRIBUTIONS (company) 12,803
% of revenue 10% 13% SOCIAL SECURITY CONTRIBUTIONS (employee) 2,765
OPERATING PROFIT before depreciation and amortizacion (EBITDA) 158 156 TOTAL COST of taxes and social security 218,378
profit after tax 12 16 % Of operating income (bEFORE DISPOSAL OF NON CURRENT ASSETS) 20%

NET VAT PAID 58,744

TOTAL CONTRIBUtIoN by REAL MADRID to tax revenue and social security 277,123

18 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 19

 INVESTMENTS
(EXCLUDING THE STADIUM REMODELING PROJECT)

Excluding the stadium remodeling project, is disclosed separately in another section of INVESTMENTS
the Club invested €225 million in 2023/2024, this report. (excluding the stadium remodeling project)
of which €10 million went to upgrade and € Million
develop facilities and the IT platform; €2 million • €246 million on the construction of Real Madrid
to repurchase rights/financing; €16 million City, considered the largest sports complex 340
331
to construction of the car park on Paseo ever built by a football club, with a total surface 320
314
de la Castellana, and €239 million to sports area of 120 hectares, 10 times bigger than 300
personnel, which included the cost of new the former complex. Ideally located in one of 280
acquisitions and the renewal of players, as well the fastest growing areas of Madrid and with 267
260
as the accrual of contingent costs arising from excellent public transportation, Real Madrid 252
240 240
acquisitions made in prior periods. City is a strategic enclave and a first-rate 225
220
sports and entertainment center. Noteworthy 207
Part of the investment in players was self- in recent years is the marked improvement 200

financed with proceeds from transfers, made to the installations, with the construction 180
173
which amounted to €28 million. Thereby, net of the first-team and youth team residences—a 160 159 161
149
investment in sports personnel (acquisitions 142
Club goal for many years—and a basketball 140
128 126 124
- transfers) was €211 million in 2023/2024, training arena and two new training fields. 120 118 115
109 109
compared to €101 million the year before. In 2018, construction was completed on the 100
91 88 90
Average annual net investment in the 2000- new office building where the Club’s various 80
83
2024 period was €74 million. operating departments work, paying the way 60
for a greater integration and freeing up space 48
40
In addition to investing in players, the Club for use in the stadium.
20
allocated a significant amount to building and
0
upgrading its facilities and for technological • €16 million for construction of the car park
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
development. In the 2000-2024 period, Real on Paseo de la Castellana, which began in
Madrid invested: the year’s second half and is expected to be
completed within 18 months. This relates to DISPOSALS: INCOME FROM PLAYER TRANSFERS, €M
• €278 million on the stadium, modernizing the start of performance of the concession 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
the facilities and enhancing their quality arrangement awarded by the Madrid Town 67 11 6 40 24 43 36 33 56 102 20 14 41 102 114 28 54 108 124 139 121 67 100 28
and functionality for spectators, as well as Council to build and operate two car parks,
providing the facilities with the resources and one on Paseo de la Castellana-Bernabéu and Players Stadium Repurchase of Rights Real Madrid Sport City Santiago Bernabeu parking
services to broaden the stadium’s commercial one on Padre Damián.
offering and develop the Club’s IT platform. All
this investment has generated a considerable Overall, these investments have helped
annual financial return. The amount does not drive Real Madrid’s economic growth, social
include the stadium remodeling project, which development and sports successes.

20 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 21

 SANTIAGO BERNABÉU STADIUM
REMODELING PROJECT

On May 8, 2019, the Board of Directors will be improved with a project covering over the 21st century and an avant-garde and on December 7, 2021, via the extension of
awarded the remodeling contract to FCC 66,000 square meters. universal icon, and marks a major upgrade for the €225 million loan facility to 27 years,
Construcción, with a term of 39 months. the Club, not to mention its surroundings. It carrying a fixed interest rate of 1.53%. The
All the spaces and galleries inside the stadium will be a modern, cutting-edge stadium, with amount was drawn down on May 31, 2022.
The remodeling work was carried out will be transformed so spectators can enjoy maximum comfort and safety, using latest The facility also includes a grace period for
without affecting the matches scheduled or a new entertainment and service offering. generation technology making it a venue repayment of principal, whereby Real Madrid
the stadium’s normal activities, barring the The museum near the La Castellana will be where fans can feel one-of-a-kind sensations. will not begin to repay the financing until July
interruption of certain activities caused by much bigger, and a new interactive museum 30, 2024. Therefore, for these €225 million,
the COVID-19 pandemic since March 2019 will be created and equipped with the latest The remodeling will also provide a new and Real Madrid will pay a fixed annual amount of
that led to matches until June 30, 2021 to virtual reality technologies. The experience important source of revenue for the Club. approximately €10.5 million as from July 30,
be held at the Alfredo Di Stefano Stadium of the Bernabéu Tour will be extended with Forecasts point to a sharp increase in revenue 2024, until maturity on July 30, 2049.
in the Sport City without spectators. In the the creation of a panoramic tour around the generation by the stadium on both match
2021/2022 season, after spectators were entire stadium and a new entertainment and days and from the stadium’s daily commercial In addition, pursuant to the authorization
allowed back in stadiums, the matches were food service offering, making it one of the operation. Higher net cash inflows will received from the Extraordinary General
once again held at the Santiago Bernabéu main attractions for tourists visiting Madrid. allow the Club to pay off the remodeling Assembly of Delegated Members held on
Stadium. It is a new stadium, with new, cutting-edge investment, while it continues to grow and November 9, 2023, on November 15, 2023,
stores and a broader offering and type of remain competitive in an increasingly tough Real Madrid signed an extension of the
The new stadium presents an immersive and restaurants and gastronomic experiences. international football environment. financing of the works, for a loan amount
avant-garde image thanks to a skin of steel of €370 million and repayment over a 30-
bands and variable lines that will allow it to Technology is pioneering and an essential To fund the remodeling project, on April 12, year period, with a 3-year grace period on
illuminate and project images. The project feature of this major reform, with a spectacular 2019, the Real Madrid Board of Directors, repayment of principal. Real Madrid will not
includes a fixed and retractable roof over the video scoreboard that is one of the most under authorization by the Extraordinary begin repaying the loan until November 15,
playing field, protecting all seats. emblematic features of the new Santiago General Assembly of Delegated Members held 2027. From then, for this €370 million Real
Bernabéu Stadium. It will be a large digital on September 23, 2018, arranged financing of Madrid will pay a fixed annual amount of €26
The demolition of the shopping center and stadium that turns into a large technological €575 million for a term of 30 years and a fixed million until maturity on November 15, 2053.
construction of two new towers on Paseo platform for interacting with fans, leading a rate of 2.5%. The financing was structured
de la Castellana make the stadium safer real digital transformation. through a loan with three drawdowns, one As a result, loans taken out to finance the
and make access and evacuation easier. each in July 2019, July 2020 and July 2021, in stadium’s remodeling total €1,170 million,
Spectator traffic will be safer and smoother, In addition, a large underground greenhouse line with scheduled payments for the works. with final maturity in November 2053 and
with new ramps, escalators, elevators and was built that was not included in the original The facility also includes a three-year grace carrying an average fixed interest rate of
more entrance doors. This reform includes project due to its complexity, which was period for repayment of principal. Therefore, 3.2%. As at June 30, 2024, the loans had
removal of architectural barriers to make technologically resolved subsequently. This Real Madrid will pay a fixed annual amount been drawn down in full.
room for nearly 1,000 new seats for people greenhouse allows for the automatic removal for these €575 million of approximately €29.5
with various abilities. of the pitch and its preservation in optimal million as from July 30, 2023, until maturity Real Madrid closed these deals without
conditions and in perfect shape to be used on July 30, 2049. having to provide any mortgage guarantees
Work is also being carried out to enhance when a football match is to be held. In this (only pledges on certain stadium revenue)
the entire urban surrounding, with a large way, the number of events that can be held Subsequently, pursuant to the authorization or accepting any restrictions on the Group´s
square on the Castellana of more than 20,000 without impacting the grass will be maximized. received from the Extraordinary General management or debt (only compliance with a
square meters and another on the corner of Assembly of Delegated Members held on certain coverage ratio between the pledged
Padre Damián of 5,500 square meters. Calle The new Santiago Bernabéu Stadium is one November 20, 2021, Real Madrid signed an stadium revenue and debt service, which it
Rafael Salgado Street will be turned into a of Real Madrid’s biggest projects for the extension of the financing of the works not met), so it can carry out its normal activity
pedestrian street and the entire surroundings future, aiming to become a benchmark for originally included in the remodeling project with no impact from payment of the works.

22 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 23

 CASH AND CASH EQUIVALENTS
(EXCLUDING PROCEEDS FROM THE LOAN
FOR THE STADIUM REMODELING PROJECT)

SANTIAGO BERNABÉU STADIUM The cash balance as at June 30, 2024, balance of cash and cash equivalents was
REMODELING PROJECT excluding cash from the stadium remodeling the result of the repayment of principal on
project loan, stood at €82 million, compared the ICO loans (€38 million) and of principal
€ Million At 06/30/2023 2023/2024 with €128 million as at June 30, 2023. on the stadium remodeling loan (€15 million).

Investments 893 270 Cash flows from operating activities was In addition to the cash balance of €82 million,
Cumulative 1,163 counterbalanced by the payments required as at June 30, 2024, the Club also had €395
on player acquisitions and facilities million of undrawn credit facilities. These
cash at june 30 125 126
(excluding the remodeling project), as well undrawn facilities leave plenty of room to
net debt at june 30 893 1,163 as by finance costs. The decrease in the meet scheduled payment obligations.

After the addition of works not included Regarding the loan facility, an additional €370 CASH AND CASH EQUIVALENTS
originally, the remodeling project continued million drawdown was made in November (excluding proceeds from the loan for the stadium remodeling project)
throughout the year, with works on the 2023, taking the total amount drawn down € Million
various structural components (facade, roof, on this facility to €1,170 million. Meanwhile,
retractable lawn) completed gradually. As at after paying only interest in the previous three 500

the June 30, 2024 reporting date, the works financial years, repayment of loan principal
related to development of businesses (VIP began in 2023/2024, with a payment of €15 450

area, tour, RM Experience, events, catering, million. This left the outstanding balance of 402
400
store), which were one of the primary reasons the loan as at June 30, 2024, at €1,155 million.
behind the remodeling project to begin with,
350
were still under way. Net debt arising from the stadium remodeling
project at June 30, 2024, amounted to €1,163 300
Investment recognized in 2023/2024 totaled million. This is the net balance between
€270 million, including the capitalized payables of €1,289 million (€1,155 million 250

borrowing costs during the construction loan, €72 million outstanding invoices payable 211
period. This took cumulative investment in and €62 million Club-Stadium adjustment) 200 190
169 174 178
the project as at June 30, 2024, to €1,163 and the cash available from the loan of €126 153
160 156 156
143
million. million. 150
124 128
112 113 114
103 98 109
98 93
100 85
82

50
19
10
0
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24

24 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 25

 WORKING CAPITAL (EXCLUDING THE
STADIUM REMODELING PROJECT)

Working capital (i.e., the difference between capital/revenue ratio, given the relationship These balances are rolled over and, therefore, Temporary situations with a large amount of
current assets and current liabilities) as at June between the volume of operations and the present similar amounts at each year-end, so cash relative to the size of the Club’s balance
30, 2024, excluding the stadium remodeling size of working capital. As at June 30, 2010, they do not represent debt, or a liquidity or sheet can arise from time to time but are not
project, was a negative €161 million, broken working capital was negative in an amount of business continuity problem. normal and not compatible with the objectives
down into operating working capital (€-176 €182 million, representing 41% of operating or not-for-profit status of the Club, which
million), financial working capital (€68 million) income before disposals. As at June 30, 2024, Due to the large volume of transactions carried invests funds obtained in the development of
and other working capital (held for sale assets, it was negative in an amount of €161 million, out by the Club at present, the only way to its sports and its facilities.
provisions and taxes amounting to €-54 million). representing 15% (26 percentage points lower). offset recurring negative working capital would
Put another way, the value of working capital be to have a large positive financial working
The Club’s working capital, barring certain as at June 30, 2024, was not only slightly lower capital through an extremely large balance of
moments of especially high cash, is inherently in absolute terms, but more importantly it was cash equivalents.
negative as the nature of its operations leads considerably lower in relative terms in relation
to operating working capital with large creditor to revenue, which is the main indicator of the
balances (between €-110 million and €-290 Club’s transaction volume. WORKING CAPITAL
million for player registrations, net trade
payables and upfront collection of membership This negative operating working capital is
€ Million 6/30/09 6/30/10 6/30/11 6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 6/30/24
fees and season tickets). recurring; i.e., rolled over each year due to the
intrinsic nature of operations, as reflected in the OPERATING WORKING CAPITAL
Despite this structural feature, the Club goes trend in balances; figures are broadly similar
to great lengths to contain and reduce its from year to year, with occasional variations
Trade receivables + Inventories 32 58 71 66 54 46 57 67 108 103 90 163 103 148 251 343
negative working capital balance. This is due to operating trends each season (e.g., Receivables from public administrations 4 1 1 1 1 1 7 0 0 0 0 0 0 0 0 0
further illustrated by the trend of the working sport achievement prizes). Trade payables -47 -74 -67 -75 -73 -63 -64 -66 -63 -63 -58 -35 -38 -62 -97 -143
Payables to public administrations -7 -11 -15 -13 -15 -15 -22 -15 -27 -23 -26 -15 -23 -36 -24 -43
Salaries and wages payable
WORKING CAPITAL (50% player registration, bonuses) -50 -56 -71 -93 -82 -114 -104 -144 -197 -208 -149 -139 -135 -216 -175 -220
Accruals -48 -66 -69 -67 -60 -58 -62 -64 -85 -96 -124 -80 -57 -79 -98 -113
€ Million Subtotal -116 -149 -151 -181 -176 -202 -189 -222 -265 -287 -267 -106 -150 -243 -143 -176

150
Financial Working Capital
120 117
102 Cash 112 93 98 113 156 174 109 211 178 190 156 124 114 402 128 82
90 79

60
Current investments 0 0 0 41 0 0 0 0 0 0 0 0 0 0 0 0
40
30 Player transfer receivables 13 34 28 21 24 36 58 53 20 52 79 44 83 35 59 48
10
0 Bank borrowings -24 -48 -7 -43 -26 -16 0 0 0 -10 0 -52 -2 -38 -39 -39
-30 Club-Stadium adjustment 31 1 8 24 59 62
-30 -29 -25
-60
Player transfer and other investments payable -146 -115 -92 -74 -76 -91 -111 -131 -70 -55 -108 -128 -79 -33 -91 -85
-56
-90
Subtotal -45 -37 27 59 77 103 56 133 128 177 157 -10 124 390 116 68
-90 -86
-120 -98 -100 -94 -98
-106
-150 -123 -123 Other
-135 -132
-142 -141
-180 -161 Available-for-sale financial assets 29 0 0 0 0 0 0 0 0 0 79 7 0 22 11 0
-210 -182
Provisions -10 -1 -1 -1 -2 -2 -3 -1 -2 -2 -2 -2 -1 -71 -53 -58
Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24
Taxes 1 4 -17 0 1 7 1 5 7 6 4 13 2 -19 12 5

CASH+SHORT TERM INVESTMENTS (€ MILLION)

Subtotal 20 4 -18 -1 -1 5 -2 4 5 4 81 18 1 -67 -30 -54

Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24

19 153 143 169 160 103 98 85 112 93 98 154 156 174 109 211 178 190 156 124 114 402 128 82
TOTAL WORKING CAPITAL -142 -182 -141 -123 -100 -94 -135 -86 -132 -106 -29 -98 -25 79 -56 -161

26 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 27

 LIABILITIES AND GROSS DEBT NET DEBT (EXCLUDING THE STADIUM
(EXCLUDING THE STADIUM REMODELING PROJECT) REMODELING PROJECT)

The Club had total liabilities at June 30, 2024, with Spanish GAAP, stood at €236 million, Gross debt was discussed in the previous The Club includes as debt the balance of
excluding the stadium remodeling project, of of which €77 million corresponded to bank section. advances on income accruing in the future,
€883 million (June 30, 2023: €801 million). This, borrowings and €159 million to debt relating to which stood at €1 million at June 30, 2024
investments in players and facilities (June 30, However, the Club’s key metric is its net debt; (June 30, 2023: €24 million). Also included
in addition to €574 million of equity (June 30,
2023: €246 million, of which €115 million of bank it does not make sense to discuss what one is the adjustment of Club-Stadium cash and
2023: €558 million) and the liabilities related to
borrowings and €131 million of investments). owes without factoring in what one owns. cash equivalents, with a balance in favor of
the remodeling project of €1,227 million (June
30, 2023: €959 million), of which €1,155 million Net debt is gross debt minus cash and cash the Club at June 30, 2024 of €62 million (June
The Club’s gross debt decreased by €10 million 30, 2024: €59 million).
is long-term finance (June 30 2023: €800 million) equivalents, of €82 million at June 30, 2024
in 2023/2024:
and €72 million short- and long-term invoices (June 30, 2023: €128 million) and receivables This left the Club’s net debt as at June 30,
payables (June 30, 2023: €159 million), gives a - 
Bank borrowings decreased by €38 million from other clubs from player transfers (in 2024, at €8 million (June 30, 2023: €-47
total balance sheet value of €2,684 million (June as 2023/2024 was the second full year of keeping with a core principle of consistency, million), excluding the stadium remodeling
30, 2023: €2,318 million). repayments of the ICO-backed bank loans. since gross debt includes amounts paid to project.
Repayments will be made regularly in coming other clubs for player acquisitions and as
Liabilities comprise gross debt, trade payables years to maturity in 2026. These loans were player acquisitions/sales are mirror sides of Net debt represents the external resources
(€362 million as at June 30, 2024, and €272 taken out for €155 million in 2019/2020 to the business), of €85 million at June 30, 2024 which, coupled with own funds, are used to
million as at June 30, 2023) and other liabilities, make up for the impact on cash flow of lost (June 30, 2023: €130 mi million), recognized fund the capital invested by the Club to carry
composed of provisions, accruals, and taxes income caused by COVID-19. in “Financial assets” in the balance sheet. out its activity.
(€285 million as at June 30, 2024, and €283
million as at June 30, 2023). - 
Debt from investments increased by €28
million, as payments made were less than the Net debt at june 30, 2023
The Club’s gross debt at June 30, 2024 excluding addition of new outstanding amounts payable
€ Million current Non-current total
the stadium remodeling project, in accordance on new acquisitions during the year.
Payables for player transfers, works and repurchase of rights 91 40 131
Player transfer receivables -59 -71 -130
Net investments/transfers 33 -30 2
real madrid liabilities at june 30, 2023 Bank borrowings 39 77 115
Cash -128 0 -128
€ Million current Non-current total Cash advance 0 24 24
Borrowings 130 116 246 Club-Stadium adjustment -59 0 -59
Subtotal other net debt -149 100 -48
Trade and other payables 272 272
Financial liabilities 402 116 518 TOTAL NET DEBT -116 70 -47
Provisions 53 46 99
Deferred taxes 37 37 Net debt at june 30, 2024
Current tax 0 0 € Million current Non-current total
Public Administrations 24 24 Payables for player transfers, works and repurchase of rights 85 74 159
Accruals 99 24 123 Player transfer receivables -48 -37 -85
Total other liabilities 176 107 283 Net investments/transfers 36 38 74
TOTAL LIABILITIES 578 223 801 Bank borrowings 39 38 77
Cash -82 0 -82
Cash advance 0 1 1
real madrid liabilities at june 30, 2024 Club-Stadium adjustment -62 0 -62
Subtotal other net debt -104 39 -65
€ Million current Non-current total
TOTAL NET DEBT -68 76 8
Borrowings 124 112 236
Trade and other payables 362 362 MANAGEMENT BALANCE
Financial liabilities 487 112 599
€ Million 06/30/2023 06/30/2024
Provisions 58 33 92
Players, facilities and other property 724 834
Deferred taxes 28 28
Provisions and other -70 -76
Current tax 0 0 Net operating working capital -143 -176
Public Administrations 43 43 TOTAL NET CAPITAL INVESTED 511 583
Accruals 114 8 122
Total other liabilities 216 69 285 NET EQUITY 558 574
NET DEBT -47 8
TOTAL LIABILITIES 702 181 883 TOTAL FUNDING SOURCES 511 583

28 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 29

 NET DEBT
(EXCLUDING THE STADIUM REMODELING PROJECT) EQUITY

The Club’s net debt excluding the stadium Looking at long-run trends in net debt, since Equity represents the Club’s own funds; i.e., the The greater the amount of equity relative to debt,
remodeling project at June 30, 2024, amounted June 2009 the Club has made considerable funds which, with borrowings, fund the Club’s the higher the Club’s value, solvency and financial
to €8 million. efforts in paying down debt, even more so since needs to carry out its activities. autonomy, as capital invested is financed more
the outbreak of the COVID-19 pandemic in 2020, by equity than debt. The debt/equity ratio is
Debt in 2023/2024 increased by €55 million which left the Club with net debt at €241 million. Equity is the accounting measure of enterprise used as an indicator of solvency and financial
measured as the difference between investment Comparing this with the current level of €8 value. For an entity like Real Madrid, which does autonomy: the lower this ratio, the higher the
(€267 million excluding the remodeling project) million illustrates that the Club was able to offset not distribute dividends, the annual change in Club’s solvency and financial autonomy.
and cash flows from operating activities. One nearly €400 million of lost revenue caused by equity relates to annual profit after tax (and any
of the key investments was in players, of €239 the pandemic, which also decreased cash and balance sheet revaluation). The debt/equity ratio at June 30, 2024, excluding
million, of which this time €28 million was self- increased debt, by implementing cost-saving the stadium remodeling project, was 0.0, which
financed with income from transfers, resulting in Through the profits it obtains, the Club has indicates maximum solvency and financial
and other business improvement measures. increased equity each year, to €574 million at
net investment in sports personnel (acquisitions autonomy.
- transfers) in 2023/2024 of €211 million Comparing debt with the Club’s payment June 30, 2024. By delivering a profit in the five
(2022/2023: €101 million). Also noteworthy was capacity represented by ordinary cash flow financial years affected by the pandemic and the
the start during the year of construction of the (measured using EBITDA: €156 million), yields a stadium remodeling—2019/2020 to 2023/2024—
car park on the Paseo de la Castellana, in which debt/EBITDA ratio—one of the most commonly despite the lost revenue, the Club was able to
€16 million has been invested. used solvency indicators—at June 30, 2024, of boost equity by €41 million relative to the level
0.1, which is commensurate with a maximum at June 30, 2019, before the pandemic and the
credit rating for financial institutions. start of remodeling work.

NET DEBT EQUITY

(excluding the stadium remodeling project)
€ Million
€ Million 600 574
546 558
350 327 550 533 533 534
500 495
300

250 245 241 450 442 463

198 412
400
200
162 170 370
150 130 125 350
115 312
91 96
100 84 72 300 275
46 250
251
50
8 220
200 196
0 176
-50 -4 -13 -10 150 141
-38 -47 106
-100 -58 100
68 74 80 86
-94 62
-150 -107 50
30
-200 -141 0

-250 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24

-300 -263
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24
Net debt/equity ratio
Net debt: Bank borrowings + Payables/Receivables on acquisition/transfer of assets – Cash. Net debt: Bank borrowings + Payables/Receivables on acquisition/transfer of assets – Cash.
A negative sign means a net liquidity position. Debt also includes the balance of non-current advances. A negative sign means a net liquidity position. Debt also includes the balance of non-current advances.
6.0
net debt/EBITDA ratio 5.4
5.0
3.5
3.1 4.0
3.0
3.2
2.5 3.0

2.0 2.0 1.7

1.7 1.7
1.4 1.1
1.5 1.4 1.4 1.0 0.8 0.8 0.7 0.7 0.5
1.1 0.5 0.3 0.2 0.2 0.1
1.0 0.0
0.8 0
0.6 0.5 -0.1 -0.0 -0.0 -0.0 -0.0 -0.0 -0.0
0.5 0.4 0.3 -1.0 -0.5
n/a n/a n/a n/a n/a n/a 0.0 0.0 0.0 0.0 0.0 0.0 0.1
0
-2.0 -1.4
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24
-1.9
EBITDA: Operating profit before depreciation and amortization. As of 2008/09, with new Spanish GAAP, it includes gains/(losses) on -3.0

disposals and impairment of non-current assets. Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24

30 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 31

 BALANCE SHEET

assets EQUITY AND LIABILITIES project) less depreciation. The value of other €297 million higher. Of the total, an increase
financial assets decreased by €12 million due of €269 was due to the stadium remodeling
€ THOUSAND 06/30/2024 06/30/2023 € THOUSAND 06/30/2024 06/30/2023 to the impact of non-current trade receivables project (the balance of the loan increased by
and sports personnel contract bonuses. The €355 million following the final drawdown of
Sports intangible assets 449,059 324,979 Social fund and reserves 554,510 542,603 balance of held for sale assets decreased by €11 €370 million and the repayment of €15 million,
Other intangible assets 45,842 26,736 Profit (loss) for the year 15,627 11,826 million, as there was a €0 balance in the current while the balance outstanding invoices payable
Property, plant and equipment 1,425,334 1,165,257 CAPITAL AND RESERVES 570,137 554,429 year since no assets qualified for classification decreased by €87 million). Payables for player
Investment properties 11,147 11,144 Socios externos 401 as available for sale. Current and non-current acquisitions and other investments increased
Non-current player transfers 36,875 70,990
Grants received 3,555 3,700 receivables for player transfers decreased by by €28 million as payments made were smaller
receivable
EQUITY 574,093 558,129 €44 million following receipt of an amount of than the amounts added to outstanding
Deferred tax assets 45,678 54,059
the outstanding balance of transfers from prior payments for new acquisitions during the
Other financial assets 64,937 77,315
Provisions for liabilities and charges 33,239 45,833 years that was higher than the outstanding year. The balance of non-current and current
TOTAL NON-CURRENT ASSETS 2,078,872 1,730,480
Bank borrowings 37,644 76,573 amounts added for transfers during the current provisions for liabilities decreased by €7 million
Non-current payables for player 45,631 39,356 year, since revenue from transfers decreased. as the amount of provisions recognized in the
acquisitions
Trade receivables increased by €83 million due year was lower than the amount of provisions
Non-current payables for stadium
and Real Madrid Sport City works 1,163,921 803,913 to the pickup in business activity. Two-thirds of derecognized the previous years as either the
Payables for Repurchase of rights/other 395 453 the increase related to higher stadium revenue related contingency arose or the provisions
Other non-current payables 6,303 0 since considerable revenue was realized was no longer considered to be necessary.
Deferred tax liabilities 28,204 37,053 in the latter part of the year and the other There was a balance of €6 million of other
Accruals 1,250 24,137 third to marketing revenue due to increased non-current payables related to long-term
TOTAL NON-CURRENT LIABILITIES 1,316,587 1,027,318 merchandising and sponsorship activity. payment obligations with sports personnel.
Inventories increased by €9 million on the back Trade payables rose by €65 million, of which
Provisions for liabilities and charges 58,301 53,022 of increased merchandising activity. The balance €27 million related to payments owed pursuant
Bank borrowings 39,390 38,509 of current tax assets decreased by €7 million as to business arrangements, €19 million to the
Assets held for sale 0 11,192
Current payables for player the income tax refund for 2023/2024 in favor of increase in VAT payable in July on transactions
98,853 86,765
Inventories 18,141 9,271 acquisitions the Club (as prepayments exceed the amount carried out in June, and €19 million due to
Current player transfers 48,366 58,557
Current payables for stadium and 77,417 159,000 payable according to the settlement at the end increased operations. Current tax liabilities
receivable Real Madrid City works
Current payables for repurchase
of the financial year), which will be received as (income tax payable) amounted to €0 since
Trade receivables 324,705 241,409 66 62
of rights/others of January 2025 when the return is filed, is lower there was no balance for this item at either
Current tax assets 4,792 12,076 Trade and other payables 186,029 121,037 than the refund received in 2022/2023. The June 30, 2024 or June 30, 2023, but rather an
Cash and cash equivalents 208,265 253,357
Current tax liabilities 0 0 balance of cash and cash equivalents totaled amount receivable by the Club was recognized
Wages and salaries payable 219,258 174,852 €208 million, of which: €126 million related to under assets. The balance of remuneration
Accruals 1,323 1,429
Accruals 114,199 99,076 cash from the stadium remodeling project loan payable increased by €45 million mostly as the
TOTAL CURRENT ASSETS 605,592 587,291 TOTAL CURRENT LIABILITIES 793,783 732,323 facility, €1 million more than the year before as expense for bonuses for sports achievements
TOTAL ASSETS 2,684,464 2,317,771 TOTAL EQUITY AND LIABILITIES 2,684,464 2,317,771 repayments made during the year were offset in the current year will be paid in the next
by the final drawdown of €370 million during reporting period, giving rise to a payable as the
the year, and €82 million related to the Club’s rest of the outstanding balance (essentially the
Assets/liabilities at June 30, 2024, amounted to The value of other intangible assets increased cash excluding the remodeling project; i.e., €46 second part of the player registration payable
€2,684 million, an increase of €367 million from by €19 million due to the investment in car parks million less than the year before for the reasons in July) was broadly unchanged because the
the year before. recognized under this item as they arose from a already explained in other notes in this report. expense was stable. The balance of non-current
concession arrangement, and the development and current accruals (amounts received which
Highlights on the assets side: The carrying of an IT platform to provide service to both Highlights on the liabilities side: Bank accrue in subsequent periods) was closely in
amount of sports intangible assets increased by members and fans. The value of property, borrowings decreased by €38 million for the line with the previous year. Equity at the end of
€124 million due to the net result of investment plant and equipment increased by €260 million repayment of ICO-backed COVID-19 bank the reporting period amounted to €574 million,
made in the year less amortization, disposals, due to the net result of investment made in loans taken out in 2020. Outstanding payables up €16 million from the year before, due to the
impairment and transfers to held for sale assets. the year (primarily in the stadium remodeling on investments (long- and short-term) were profit after tax obtained in 2023/2024.

32 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 33

 OTHER MANAGEMENT
INFORMATION

NATURE AND EXTENT OF RISKS ARISING FROM paper issued by highly solvent financial interest rates since the middle of 2022 has
FINANCIAL INSTRUMENTS institutions, interest-bearing accounts and barely had any impact on the Club’s income
other similar financial products. Specifically, statement. Given its financing mix, the Club
Real Madrid has established a series of investment in speculative financial products does not enter into any derivatives as interest
procedures and controls that make it possible or those in which the counterparty is not rate hedges.
to identify, measure, and manage the risks clearly and explicitly identified are expressly
arising from financial instrument activity. prohibited. Investments should be diversified Inflation
Financial instrument activity exposes the Club to ensure that the risk is not significantly
to credit, market, and liquidity risk. concentrated in any one institution. However, Inflation peaked in July 2022 (at 10.8% yoy),
temporarily, undrawn facilities may, depending before falling sharply to 3.4% yoy in June 2024.
Credit risk on market conditions, concentrated in certain In any case, given its cost structure, the Club
highly solvent institutions. Investments in has seen only a moderate impact of inflation
Credit risk is the risk that a Club counterparty current financial assets must be liquid assets on its expenses. It does not consume any
will not meet its contractual obligations, i.e., with a maturity of three months or less, with commodities; energy consumption is largely
the possibility that financial assets will not be a repurchase commitment or a secondary insignificant; and the portion of expenditure
recovered at their carrying amount within the market that guarantees their immediate on external services and non-sports personnel
established time frame. liquidity if required. Compliance with these linked to short-term inflation represents less than
requirements minimizes investment risk and 20% of the Club’s total expenses. Moreover,
With regard to trade receivables, the Club has therefore the Club has seen no impairment on the part of the inflation-induced increase in
a procedure in place to measure, manage and any of its financial investments since 2000, the expenses will be offset by corresponding
control the risks arising from each of its loans. first year for analysis of the Club’s economic increases in certain revenue items.
The procedure covers risk measurement and and financial performance considered in this
the initial authorization, ongoing monitoring management report. Liquidity risk
of the exposure and subsequent controls.
The Club, through its various departments, Market risk Liquidity risk is the risk that the Club will
assesses and monitors these exposures on have a shortage of funds or lack access to
a monthly basis with a view to identifying Interest rate risk sufficient funds at an acceptable cost to
risky situations and collection delays, taking meet its payment obligations at all times.
the necessary precautions, including legal Market risk entails interest rate risk caused To address this risk the Club aims to
measures if warranted, to enable recovery of by uncertainty over the future performance of maintain sufficient available funds to carry
amounts past due as quickly as possible. In the financial markets and interest rates, which out its operating activities and make the
many cases, in order to guarantee collection can potentially have a negative impact on the investments it requires at any given time.
of receivables, the Club often demands Club’s results and cash flows. Financing for As at June 30, 2024, the Club had a cash
suitable collateral and guarantees. As a result the stadium project is for 30 years at fixed balance of €208 million (of which €126 million
of all these measures the Club’s losses on rates, thereby eliminating any risk since the related to the cash inherent in the stadium
uncollectible receivables are insignificant in transaction is for such a long period of time. remodeling project and €82 million to the rest
relation to the its annual revenue. Almost the entire amount of new long-term of the Club’s cash and cash equivalents) and
(with maturity to 2026) financing raised in undrawn credit facilities amounting to €395
The Club’s investment policies establish 2019/2020 to cushion the impact of COVID-19 million at a floating interest rate plus a highly
that financial investments must be made in is at fixed rates and, therefore, risk-free. The competitive spread.
accordance with the following guidelines: They rest of the Club’s financing comprises short-/
must be arranged with financial institutions medium-term credit facilities carrying floating These funds, plus the cash flows generated
domiciled in Spain and of renowned solvency interest rates indexed to the Euribor, of which regularly by the Club through its operating
and liquidity. Acceptable investment products no amounts had been drawn down as at activities, allow it to comfortably meet all its
include bank deposits, repos, commercial June 30, 2024. Therefore, the rapid spike in payment commitments.

34 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 35

 OTRA INFORMACIÓN
DE GESTIÓN

AVERAGE SUPPLIER PAYMENT design of various sections of the stadium store), which will be completed in 2024/2025
PERIOD remodeling project, and the design and and mark the end of the remodeling project.
development of the technology platform and Therefore, depreciation of the investment will
The Club’s average supplier payment period in other tools to support its digital activities. Also begin next year and borrowing costs will no
2023/2024 was 41 days. Payments were made included are sports health-related activities and longer be capitalized.
amounting to €370 million, of which €275 million the development of new IT tool.
(75% of the total) were paid within 60 days. Completion of the project will have an impact
on stadium revenue. Although it increased in
2023/2024, all the businesses of the stadium
TREASURY will be fully operational in 2024/2025, paving
PERSONNEL SHARES the way for considerable additional growth in
stadium revenue. Logically, increased revenue
In 2023/2024, the Club had an average of As the Club is a sports association, it has no will also mean higher operating expenses
1,118 employees, of whom 535 were players shares and therefore no treasury shares. related to running the stadium.
and coaches (2021: 974 and 473, respectively).
Regarding commercial activity, in 2023/2024
At June 30, 2024, the Club had 1,163 employees the Club boosted both merchandising and
(June 30, 2023: 1,072), of whom 557 (June 30, EVENTS AFTER THE sponsorship activities. The momentum in
2023: 512) were players and coaches. REPORTING PERIOD commercial activity is set to continue in
2024/2025 and even gather pace in the coming
The most significant events that occurred years, underpinned by the Club’s strong
between the end of the reporting period and brand, especially thanks to the composition
ENVIRONMENTAL the date of authorization for issue of these of teams and sports achievements, not to
DISCLOSURES financial statements were as follows: mention the stadium’s remodeling.

Given the nature of its activities, the Club has • Kylian Mbappé joined the men’s first The Club expects to build on the success
no environmental liabilities, expenses, assets, football team in July 2024. No amount was of its sport model, pursuing further sports
provisions or contingencies that could have a paid to acquire the player’s transfer rights. successes in football and basketball, which
significant effect on its equity, financial position have set the Club apart throughout its history
and results. • Player transfers to other clubs were carried and especially in recent years. In this respect,
out amounting to approximately €18,350 the key highlight was the signing of Kylian
Real Madrid, in compliance with its sustainability thousand. Mbappé to the men’s first division football
and energy efficiency policy, continues to team for the 2024/2025 season.
study and carry out measures to reduce its
consumption and ensure the responsible This performance must be supported by
management of resources. OUTLOOK an economic model that aims to achieve
self-sustaining growth, where, through the
Looking ahead to 2024/25, the key matter is combination of diversified revenue and
completion of stadium remodeling work. During contained costs, a profitability and financial
RESEARCH, DEVELOPMENT 2023/2024, works were gradually completed structure are achieved to provide the solvency
AND INNOVATION on the various structural components (facade, that enables the Club to make the investments
roof, retractable lawn) and part of the works it needs to carry out its business.
Given the nature of the Club activities, its most related to development of businesses (VIP
relevant activities in this area are the innovative area, tour, RM Experience, events, catering,

36 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 37

 CONSOLIDATED FINANCIAL
STATEMENTS
For the year ended June 30, 2024.

The Financial Statements of Real Madrid Club de Fútbol

and Subsidiaries is presented below.

38 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 39

 CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 2024

ASSETS EQUITY AND LIABILITIES

€ THOUSAND Notes 6/30/2024 6/30/2023 € THOUSAND Notes 6/30/2024 6/30/2023

NON-CURRENT ASSETS 2,078,872 1,730,480 EQUITY 574,093 558,129

Sports intangible assets 4 449,059 324,979 Capital and reserves 11 570,137 554,429
Other non-sports intangible assets 5 45,842 26,736 Reserves 498,401 487,997
Property, plant and equipment 6 1,425,334 1,165,257 Revaluation reserve RD 7/96 8,548 8,548
Investment properties 7 11,147 11,144 Revaluation reserve law 16/2012 20,277 20,277
Non-current financial investments 8.1 62,246 106,652 Legal reserve - 1
Non-current accruals 15.1 39,566 41,653 Capitalization reserve 15,802 13,378
Deferred tax assets 16 45,678 54,059 Reserves in fully consolidated companies 11,482 12,402
Profit for the year 15,627 11,826
Grants, donations and bequests received 12 3,555 3,700
Non-controlling interests 11 401 -

NON-CURRENT LIABILITIES 1,316,587 1,027,318

Non-current provisions 13.1 33,239 45,833
Non-current loans and borrowings 14.1 1,247,591 920,295
Bank borrowings 37,644 76,573
Other financial liabilities 1,209,947 843,722
Non-current payables 14.1 6,303 -
Deferred tax liabilities 16 28,204 37,053
Non-current accruals 15.2 1,250 24,137

CURRENT ASSETS 605,592 587,291 CURRENT LIABILITIES 793,784 732,324

Non-current assets held for sale 4.2 - 11,192 Current provisions 13.2 58,301 53,022
Inventories 9 18,141 9,271 Current loans and borrowings 14.3 215,726 284,336
Trade and other receivables 8.2 377,863 312,042 Bank borrowings 39,390 38,509
Current accruals 15.1 1,323 1,429 Other financial liabilities 176,336 245,827
Cash and cash equivalents 10 208,265 253,357 Trade and other payables 14.4 405,558 295,890
Current accruals 15.2 114,199 99,076

TOTAL ASSETS 2,684,464 2,317,771 TOTAL EQUITY AND LIABILITIES 2,684,464 2,317,771

40 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 41

 CONSOLIDATED INCOME STATEMENT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2024 FOR THE YEAR ENDED JUNE 30, 2024

€ THOUSAND Notes 2023/2024 2022/2023

CONTINUING OPERATIONS A) Consolidated statement of recognized income and expense

for the year ended June 30, 2024.
Revenue
Membership fees, ticket sales and stadium revenue 306,970 151,843
International and friendly matches 150,784 136,030
€ THOUSAND Notes 2023/2024 2022/2023
Broadcasting revenue 179,257 186,813
Marketing revenue 406,629 329,812
Profit for the year 15,627 11,826
17.1 1,043,640 804,498
Income and expense recognized directly in equity - -
Self-constructed assets 17.1 9,437 - Amounts transferred to the income statement

Cost of sales
Grants, donations and bequests received 12 (193) (192)
Raw materials and other consumables used 17.2 (65,718) (44,000) Tax effect 12 48 48
Total amounts transferred to the income statement (145) (144)
Other operating income 17.1 12,052 26,715

Sports and non-sports personnel expenses 17.3 (504,974) (452,701) Total recognized income and expense 15,482 11,682

Other operating expenses

Losses on, impairment of and changes in trade provisions 17.4 3,157 90
Other operating expenses 17.4 (362,111) (262,299)
(358,954) (262,209)

Depreciation and amortization 4, 5, 6, 7 (134,419) (154,569) B) Consolidated statement of total changes in equity for the year
ended June 30, 2024.
Non-financial and other capital grants 12.17.1 193 192

Provision surpluses 13.1, 13.2 7,890 11,613 Grants,

Reserves in donations
Revaluation Capitalization consolidated and bequests Non-
Impairment, gains/(losses) on disposal of non-current assets Reserves reserves reserve companies Profit Total received controlling Total
and other exceptional gains/(losses) € THOUSAND (Note 11) (Note 11) (Note 11) (Note 11) for the year equity (Note 12) interests equity
Impairment and losses 17.5 (15,084) (30,607)
Gains/(losses) on disposal and other 17.5 27,792 104,057
Balance at June 30, 2022 487,517 28,825 13,325 - 12,936 542,603 3,844 - 546,447
12,708 73,450
Distribution of prior year
OPERATING PROFIT 21,855 2,989 profit/(loss) 480 - 53 12,403 (12,936) - - - -

Total recognized income and

Finance income expense for the year ended
Marketable securities and other financial instruments 17.6 10,191 12,754 June 30, 2023 - - - - 11,826 11,826 (144) - 11,682
Capitalization of borrowing costs 17.6 29,727 17,917
39,918 30,671 Balance at June 30, 2023 487,997 28,825 13,378 12,403 11,826 554,429 3,700 - 558,129

Distribution of prior year

Finance costs 17.6 (41,854) (25,083) profit/(loss) 10,404 - 1,156 266 (11,826) - - - -

NET FINANCE INCOME/(EXPENSE) (1,936) 5,588 Transfer to recapitalization

reserve - - 1,268 (1,268) - - - - -
PROFIT BEFORE TAX 19,919 8,577
Inclusion of new company to
the group - - - - - - - 400 400
Income tax (expense)/income 16.1 (4,291) 3,249
Other changes - - - 81 - 81 - - 81
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 15,628 11,826
Total recognized income and
expense for the year ended
PROFIT FOR THE YEAR 15,628 11,826 June 30, 2024 - - - - 15,627 15,627 (145) 1 15,483

Attributable to equity holders of the parent 15,627 11,826 Balance at June 30, 2024 498,401 28,825 15,802 11,482 15,627 570,137 3,555 401 574,093
Attributable to non-controlling interests 1 -

42 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 43

 CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024 FOR THE YEAR ENDED JUNE 30, 2024

€ THOUSAND Notes 2023/2024 2022/2023

OPERATING ACTIVITIES
Profit for the year before tax 19,919 8,577
1. CORPORATE INFORMATION
Adjustments for: 110,275 35,851
Depreciation and amortization 4, 5, 6, 7 134,419 154,569 Real Madrid, Club de Fútbol (the “Club”) was formed in 1902
Impairment losses 17.5 15,084 30,607 as a sports entity to engage in, and use its assets for, primarily
Change in provisions 13.1 13.2 17.4 (10,472) (38,234) and principally, the promotion of football at all levels and ages
Grants recognized in the income statement 12 (193) (194) and, in general, of all sports.
Proceeds from derecognition and disposals of non-current assets 17.5 (27,792) (104,057)
Finance income 17.6 (39,918) (30,671) Its sporting activities focus currently on playing and promoting
Finance costs 17.6 41,854 25,083 football and basketball. The Club has women’s and men’s
Other income and expenses (2,707) (1,252) teams competing at various levels in both of these sports.
Working capital adjustments 43,660 (155,237)
Inventories (8,870) (1,525)
The Club is the parent of a group composed of the following
Trade and other receivables (74,692) (102,575)
subsidiaries:
Other current assets 106 790
Trade and other payables 101,138 (5,674)
Other current liabilities 49,330 18,227 Date of Cost of Registered
Name incorporation stake % stake address Activity
Other non-current assets and liabilities (23,352) (64,480)
Other cash flows from operating activities 9,513 (33,734) 3021-3022 Units, South Tower Beijing Kerry
Support Real Madrid’s expansion in China
Interest paid (5,998) (5,662) Real Madrid Beijing Co, Ltd. 3/24/2015 137 100% Centre, 1 Guanghua Road, Chaoyang District,
and other countries in Asia.
Interest received 9,097 2,006 Beijing, China
Income tax received/(paid) 6,414 (30,078)
Management of all kinds of venues.
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES 183,367 (144,543) Real Madrid Estadio, S.L.U. 8/27/2021 3 100% Avda. Concha Espina, 1
Car park construction and operation.
INVESTING ACTIVITIES
Aparcamientos del Santiago
Payments for investments (613,838) (416,980) 10/31/2023 19,600 98% Avda. Concha Espina, 1 Car park construction and operation.
Bernabéu, S.L.
Sports intangible assets (224,876) (128,315)
Other intangible assets (11,599) (21,228)
Property, plant and equipment (373,602) (264,837)
Investment properties (11) - Real Madrid Aparcamientos del Santiago Bernabéu, S.L., which
Other financial assets (3,750) (2,600) was newly incorporated, is 98%-owned by subsidiary Real
Proceeds from sale of investments 68,682 79,529 Madrid Estadio, S.L.U and 2% by non-Group company SABA
Sports intangible assets 66,859 77,513 Aparcamientos, S.A.
Other intangible assets - 14
Property, plant and equipment 22 2
Real Madrid Club de Fútbol’s and Real Madrid Estadio, S.L.U.’s
Other financial assets 1,801 2,000
financial year begins on Jully 1 each year and ends on June 30
NET CASH FLOWS USED IN INVESTING ACTIVITIES (545,156) (337,451)
the following year, whereas the financial year of subsidiaries Real
FINANCING ACTIVITIES Madrid Beijing, Ltd and Aparcamientos del Santiago Bernabéu,
Proceeds from and payments for equity instruments 401 - S.L. is the calendar year.
Issue of equity instruments 401 -
Proceeds from and payments for financial liability instruments 316,296 (37,965)
Proceeds from other loans and borrowings 370,000 -
Redemption and repayment of bank borrowings (38,297) (37,965)
Redemption and repayment of other borrowings (15,407) -
2. BASIS OF PREPARATION
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES 316,697 (37,965)
These consolidated financial statements have been authorized for
NET FOREIGN EXCHANGE DIFFERENCE - issue by the Board of Directors of Real Madrid Club de Fútbol, the
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (45,092) (519,959)
parent of the consolidated group.
Cash and cash equivalents at beginning of period 253,357 773,316
Cash and cash equivalents at end of period 10 208,265 253,357 The figures shown herein are in thousands of euros (€ thousand),
unless stated otherwise.

44 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 45

 2.1 Fair presentation to their financial information included in the consolidated
financial statements.
The accompanying consolidated financial statements have
been prepared from the auxiliary accounting records of the 2.3 Comparative information
Club and subsidiaries included in the scope of consolidation in
accordance with Spanish GAAP (Plan General de Contabilidad) In accordance with company law, for comparative purposes
and other prevailing accounting legislation to present fairly the Group has included, for each item of the balance sheet,
the equity, financial position and results of operations of the the income statement, the statement of changes in equity and
consolidated group. the statement of cash flows, in addition to figures for the year
ended June 30, 2024, those for the year ended June 30, 2023.
Specifically, these consolidated financial statements have been
prepared in accordance with Spanish GAAP (Plan General Quantitative information for the previous year is also included
de Contabilidad) approved by Royal Decree 1514/2007, in the notes to the financial statements unless an accounting
of November 16, which has been amended several times standard specifically states that this is not required.
since its publication, the latest by Royal Decree 1/2021, of
January 12, and the rules for the preparation of consolidated 2.4 Critical issues regarding the measurement and estimation of
financial statements approved by Royal Decree 1159/2010, of uncertainties
September 17. They also considered the specifics contained in
Spanish GAAP applicable to sporting public limited companies The Club’s Board of Directors has prepared the consolidated
(sociedades anónimas deportivas) and sports entities. financial statements using estimates based on historical
experience and other factors considered reasonable under the
The statement of cash flows was prepared to present fairly the circumstances. The carrying amounts of assets and liabilities,
source and use of the Group’s cash flows represented by cash which were not readily apparent from other sources, were
and cash equivalents. established on the basis of these estimates. Although the Group
reviews these estimates on an ongoing basis, there is a series
2.2 Basis of consolidation of risks and uncertainties that depend on the future outcome
of certain assumptions and considerations described herein
The consolidated group includes all companies over which the that could result in the need to revise the carrying amounts
parent, Real Madrid Club de Fútbol, has or could have, directly of assets and liabilities in future periods or other disclosures
or indirectly, control, understood to be the power to govern the contained in these notes.
business and financial policies of a company.
The key assumptions concerning the future and other key
The consolidated financial statements have been prepared sources of estimation uncertainty of estimates at the reporting
applying the full consolidation method. date, that have significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next
In preparing the accompanying consolidated financial financial year, are described below.
statements, all significant balances and transactions between
consolidated companies and the significant results of those • Impairment of non-current assets and non-current assets held
transactions were eliminated. for sale recognized as current assets

In addition, in the preparation of the accompanying consolidated The measurement of non-current assets requires estimates to
financial statements, uniformity adjustments were made to determine their recoverable amount (Notes 3.6) for assessing
the most significant accounting principles and policies to whether there is any impairment. To determine recoverable
make them uniform them with those used by the parent. For amount, where it is not possible to use a market value, the
Aparcamientos del Santiago Bernabéu, S.L. and Real Madrid Group’s directors estimate, as at the date of authorization for
Beijing Ltd., whose financial year ended December 31, 2023, issue of the consolidated financial statements and whenever
uniformity of timing adjustments were made at June 30, 2024 feasible, the present value of the estimated and probable future

46 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 47

 cash flows to be generated by the assets discounted using an arrangements, it has determined that the lessor retains all
appropriate discount rate. The Group also makes estimates to the risks and rewards of ownership of the assets. Therefore,
determine fair value less costs to sell for assets classified as it accounts for these arrangements as operating leases.
non-current assets held for sale (Note 3.5). These estimates are Operating lease payments are recognized as expenses in the
based primarily on offers received by the Group for the assets income statement on a straight-line basis over the lease term.
and on the analysis of comparable transactions in the market.
2.5 Distribution of profit
• Deferred tax assets
Group companies earmark 10% of profit for the Capitalization
Deferred tax assets are recognized for the carry forward of Reserve in compliance with Article 25 of Law 27/2014 on
unused tax credits and any unused tax losses to the extent that Corporate Income Tax (the CIT law) to apply the reduction in
it is probable that the Club and its subsidiaries will have future the tax base provided in that law (see Note 16.3).
taxable profit available against which they can be utilized and,
accordingly, the assets recovered. To determine the amount of The Club allocates the remaining 90% to increase the balance
deferred tax assets that can be recognized, the Club and its of reserves, while subsidiary Real Madrid Estadio S.L.U.
subsidiaries estimate the amounts and dates on which future allocates the remainder to increase the balance of voluntary
taxable profits will be obtained, and the period of reversal of reserves after complying with the legal requirement of Article
taxable temporary differences. 274 of the Corporate Enterprises Act approved by Royal
Decree-Law 1/2020 of July 2 to earmark 10% of profit for the
• Provisions legal reserve until it reaches 20% of the capital. Meanwhile,
Aparcamientos del Santiago Bernabéu, S.L. allocates 10% of
The Group makes judgments and estimates regarding the its profit to the legal reserve in compliance with that law and
probability of occurrence of risks that could require the the remaining 80% to voluntary reserves.
recognition of a provision and, where appropriate, the related
amounts. A provision is recognized only when the risk is 2.6 Balance sheet revaluation
considered probable, in which case the cost that would
be arising from the obligating event is estimated. On other In 1996/1997, the Group availed itself of the balance sheet
occasions, the cost is determined after the reporting date and revaluation provided for in RD Law 7/1996, of June 7, increasing
prior to the authorization for issue of the consolidated financial the net value of its property, plant, and equipment by €8,548
statements, once additional information and documentation thousand. The impact on the depreciation charge for the year
has been obtained that confirms the assessment or estimate ended June 30, 2024 was €160 thousand (June 30, 2023: €160
of the risk materializing at the end of the reporting period. thousand).

• Calculation of fair value, value in use and present value Similarly, in 2013/2014, the Group decided to avail itself of
the revaluation provided for in Law 16/2012, of December 27,
Calculating fair value, value in use and present value entails, resulting in a net increase in its property, plant and equipment
in certain cases, calculating future cash flows and making of €21,344 thousand. At the Extraordinary General Assembly
assumptions on the future amounts of the cash flows, as well held on September 22, 2013, the revaluations were approved,
as the applicable discount rates. The estimates and related along with the ad hoc balance sheet issued by the Board of
assumptions are based on historical experience and various Directors. The ad hoc balance sheet and the breakdown of
other factors considered reasonable under the circumstances. the revaluations of the various items of property, plant, and
equipment were provided in the 2013/14 consolidated financial
• Operating lease commitments — The Group as lessor statements.

The Group has entered into leases to carry out its business. The impact on the depreciation charge for the year ended June
Based on an evaluation of the terms and conditions of the 30, 2024 was €520 thousand (June 30, 2023: €520 thousand).

48 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 49

 3. ACCOUNTING POLICIES to ownership of the contractual rights over the Club’s players.
However, if at the end of the period the Group considers that
The significant accounting policies applied by the Group in certain players meet the requirements for the related sports
the preparation of the accompanying consolidated financial intangible assets to be classified as non-current assets held
statements for the year ended June 30, 2024, are as follows: for sale (Note 3.5), the player is reclassified to this item and
measured in accordance with the policy explained in the
3.1 Sports intangible assets related note.

Sports intangible assets includes mainly player transfer rights 3.2 Other non-sports intangible assets
(“transfers”) and the costs incurred to acquire such rights.
These rights are measured at acquisition cost and amortized Other intangible assets are initially recognized at acquisition
from the moment they are acquired on a straight-line basis cost. The cost of intangible assets acquired in a business
over the term of each player’s contract. These intangible assets combination is their fair value at the date of acquisition.
are initially recognized on the date the related acquisition Following initial recognition, these intangible assets are carried
agreement becomes effective. at cost less any accumulated amortization and accumulated
impairment losses.
Following initial recognition, these assets are carried at cost less
accumulated amortization and any accumulated impairment. This type of intangible asset is recognized if, and only if, it is
probable that it will generate future benefits for the Group, its
The cost of the intermediation services in player acquisitions cost can be measured reliably and it is identifiable.
or renewals is recognized as an increase in the acquisition
cost and amortized on a straight line basis over the life of the Intangible assets are amortized on a systematic basis in
player’s contract. accordance with their estimated useful life and residual value.
Amortization methods and periods are reviewed at the end
At the end of each half-year interim or full-year reporting of each reporting period, and adjusted prospectively where
period, these intangible assets are assessed for indications applicable. Intangible assets are tested for impairment at least
of impairment. If there is objective and clear evidence that at each financial period end. If any such indication exists, the
the Group’s sports intangible assets are impaired before the company estimates the recoverable amount and recognizes
date of authorization for issue of the consolidated financial the related impairment.
statements, the related impairment loss is recognized.
• Concessions
Player purchase options not exercised at the end of the reporting
period are measured at acquisition cost, given the difficulties This item includes the following concessions:
inherent in estimating the options’ fair value, as there are no
active market or comparable transactions for these assets. a) Operating concession

In general, players are derecognized at the date of disposal, This includes expenditure made to obtain the concession
transfer, cancellation of the contract, or expiry of the contractual for certain of the Group’s activities. These arrangements
rights over the players. Even though contact may have been are amortized on a straight-line basis over the concession
initiated with other clubs, agents, or the players themselves, term of seven years. The Club’s concession assets are fully
for the purpose of negotiating their departure from the Club, amortized.
and given the difficulties and uncertainties that arise before
signing agreements, in general, the related gain or cost is not b Operator’s license for a TV channel
recognized until either the sale or transfer contract has been
signed, or until the player’s contract expires, since up to that This line item includes the grant of an operator’s license for
moment there is no real transfer of rights and risks incidental free-to-air broadcasting via TDT through an HD TV channel.

50 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 51

 The license was granted to the Club by the Ministry for a) Merchandising rights
Industry via Ministerial Order of November 19, 2015, following
a public tender held in accordance with the tender terms Merchandising rights includes the value of rights repurchased
approved by the Council of Ministers on April 17, 2015. The by the Club on June 26, 1998, for €80,070 thousand, for
amount recognized is the present value of the fees payable merchandising, rights to use the sporting facilities, and
for use of the concession over its 15-year term, which is also adjacent bars and restaurants, audiovisual broadcasting
its amortization period. rights to matches in European competitions, and static and
dynamic in-game advertising and sponsorship of the football
c) Concession to build and operate two car parks and basketball teams. These rights were amortized on a
straight-line basis over periods ranging from four to 21 years,
In September 2023, the Group was awarded an administrative which ended in previous years, and were fully amortized as
concession to build and operate two underground car parks at June 30, 2024 and 2023.
located on both sides of the Santiago Bernabéu Stadium.
The concession term is 40 years. These rights also include other management and exploitation
rights repurchased by the Club in 2002/03 over several boxes
The Group classifies the concession arrangement as an located in the Santiago Bernabéu Stadium from Palcos
intangible asset since the consideration received entails the Blancos, S.L. for €9,423 thousand. These rights were fully
right to collect rates based on the level of usage of the public amortized as at June 30, 2024 and 2023.
service. The Group assumes the demand risk.

Finally, this item includes the merchandising, image,
Construction of the infrastructure will be carried out by third website and distribution rights repurchased by the
parties. Therefore, the consideration received is accounted Club from the former owners of the discontinued Real
for at the fair value of the infrastructure received, which is Madrid Gestión de Derechos, S.L. subsidiary for €29,610
equal to the cost plus the construction margin. During the thousand. These rights were fully amortized at June 30,
construction period, the liability assumed with third parties 2024 and 2023.
is recognized as an advance of an intangible asset.
b) Exploitation rights to stadium boxes acquired in business
Also included under this item is the present value of the combinations
annual fee payable to the Town Council over the term of the
arrangement. This item includes the rights acquired in 2002/03 arising from
the business combination carried out by the Club that year
• Patents, licenses, trademarks, and similar rights with Inversiones Incas 2000, S.L. and Real Madrid Eventos
Deportivos, S.L. These two companies operated a number
This items reflects the amounts paid to register the Club’s of boxes in the Santiago Bernabéu Stadium that were
trademark. This asset is amortized on a straight-line basis over acquired by the Club that year for €955 thousand and €4,029
a period of 10 years. thousand, respectively. These rights were fully amortized as
at June 30, 2024 and 2023.
• Computer software and IT platforms
c) Other rights
These assets are amortized on a straight-line basis over periods
ranging from three to four years. Software maintenance costs This includes the recovery by the Group of €16,164 thousand
are recognized as an expense when incurred. of rights to use seats for the season in the stadium included
in the collective bargaining agreement in favor of employees.
• Other non-sports intangible assets These rights were recovered in the first half of 2022/23 and
will be amortized over a period of 25 years, i.e. the remaining
This item includes: years of useful life of the rights at the time of recovery.

52 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 53

 3.3 Property, plant and equipment property, plant or equipment (calculated as the difference
between the net disposal proceeds and the carrying amount of
Property, plant, and equipment are measured initially at cost, the asset) is recognized in the consolidated income statement
determined as the purchase price or production cost, including for the year or period when the asset is derecognized.
all costs and expenses related directly to the assets acquired
until they are in operating condition. Cost also includes the 3.4 Investment properties
revaluations made in accordance with legislation (Note 2.6).
Investment property include assets held to earn rentals or for
After initial recognition, property, plant and equipment are capital appreciation, as well as assets that are not used in
carried at cost less accumulated depreciation and accumulated operations and do not form part of the Group’s ordinary course
impairment losses, if any. of business. The Santiago Bernabéu Stadium facilities leased
to third parties are classified as investment properties.
Borrowing costs arising from external financing to construct
property, plant and equipment accrued until assets that required The criteria set out for measuring and depreciating property,
more than one year to be brought into working condition are plant, and equipment are applied to investment properties.
ready to enter service are included in the purchase price or
production cost of the asset. 3.5 Non-current assets held for sale

Expenses for repairs that do not extend the useful life of the The Group classifies a non-current asset as held for sale if its
assets, as well as maintenance expenses, are taken to the carrying amount will be recovered principally through a sale
income statement in the year incurred. Costs incurred to enlarge transaction rather than through continuing use and provided
or improve items of property, plant and equipment which that the following requirements are met:
increase capacity or productivity or extend the useful life of the
asset are capitalized as an increase in the value of the asset. • the asset is available for immediate sale in its present
condition subject only to terms that are usual and customary
When available for use, property, plant and equipment are for sales of such assets;
depreciated on a straight-line basis over their estimated useful
life. • an active program to locate a buyer has been initiated; and

The years of estimated useful life of property, plant and • the sale is highly probable within a year from the date of
equipment are as follows: classification as a non-current asset held for sale.

Years of useful life Non-current assets held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
Sports stadiums and pavilions 50 These assets are not depreciated and, where necessary, the
Other installations, equipment and furniture 5 - 25 corresponding impairment is recognized so that the carrying
Other property, plant and equipment 5 - 10 amount does not exceed the fair value less costs to sell.

When an asset no longer meets the conditions for classification

The Group reviews the assets’ residual value, useful lives and as held for sale, it is reclassified according to its nature and
depreciation methods at the end of each reporting year or measured at the lower of the carrying amount before it was
period and adjusts them prospectively where applicable. classified as held for sale, adjusted for any depreciation,
amortization or impairment that would have been recognized
Items of property, plant and equipment are derecognized on had the asset not been classified as held for sale, and the
disposal or when no future economic benefits are expected recoverable amount at the reclassification date. Any difference
from them. The gain or loss on derecognition of an item of is recognized in the income statement according to its nature.

54 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 55

 These measurement provisions do not apply to deferred tax certain sports and financial parameters to identify
assets, assets arising from employee benefits and financial whether there are any indications that a sports intangible
assets not related to equity investments in group companies, asset may be impaired. If any clear indication or object
jointly controlled companies and associates included in the evidence of impairment exists, the Club’s management
category of assets non-current assets held for sale, which are estimates the asset’s recoverable amount based on the
covered by specific standards. best information available at the date of authorization
for issue of the consolidated financial statements and
Any related liabilities that may be canceled when the asset recognizes an impairment loss.
is sold are classified under “Liabilities associated with non-
current assets held for sale”. 
Sports property, plant, and equipment (e.g., sports
stadiums and pavilions) present the same challenges to
3.6 Impairment of non-financial assets determine the market value, as there is no active and
transparent market in which comparable transactions
The Group assesses, at least at the end of each financial year can be identified. To assess whether these assets may
or period, whether there is an indication that a non-current be impaired, the Club analyzes whether the future cash
asset or, where applicable, a cash-generating unit, may be flows are sufficient to cover the carrying amounts of
impaired. If any such indication exists, the Club estimates the the assets to the extent necessary to cover the related
asset’s recoverable amount and recognizes an impairment. depreciation charges and other operating expenses.

Impairment and any reversals thereof are recognized in the b) 

Other intangible assets, other property, plant and
income statement. Impairment losses are reversed only if the equipment and investment property
circumstances that gave rise to the impairment cease to exist.
Impairment is only reversed up to the limit of the carrying The recoverable amount is the higher of fair value less
amount of the asset that would have been determined had the costs to sell and value in use. The asset is considered
impairment loss not been recognized. impaired when its carrying amount exceeds its recoverable
amount. The value in use is the present value of the
To determine whether there are indications of impairment, the expected future cash flows, discounted using a market
Group carries out the following analysis: risk-free rate and adjusted for any risks specific to the
asset. For those assets that do not generate cash inflows
a) Sports intangible assets / Sports property, plant and that are largely independent of those from other assets or
equipment groups of assets, the recoverable amount is determined
for the cash-generating unit to which the asset belongs.
For sports intangible assets, the Group considers that,
due to the complexity of negotiations to determine In addition, the Group recognizes impairment on assets
market value upon acquisition of the sports intangible classified as non-current assets held for sale (Notes 2.4,
asset, the lack of an active and transparent market, the 3.1 and 3.5).
difficulties identifying comparable transactions and the
significant changes in market value that can occur from
one day to the next as a function of player performance
and/or injuries, the differing economic circumstances of 3.7 Leases
the selling and buying clubs, and the stance of players/
agents, among others, in general it is not possible Arrangements are classified as finance leases when the
to determine the fair value of each of these assets economic conditions of the lease indicate that substantially
objectively and reasonably until their sale. Nevertheless, all the risks and rewards incidental to ownership of the asset
the Club performs a detailed (individual and collective) are transferred. All other lease arrangements are classified as
analysis of the value of players’ potential based on operating leases.

56 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 57

 • Group as lessee personnel, dividends receivable and receivables on called-up
Operating lease payments are recognized as expenses in the equity instruments expected to be collected in the short term
income statement when accrued. are measured at their nominal amount, provided that the effect
of not discounting the cash flows is not material.
• Group as lessor
Rental income from operating leases is recognized in the Security deposits provided on operating leases are measured
income statement when accrued. at the amount given, which does not differ significantly from
fair value.
3.8 Financial assets
They are measured subsequently at amortized cost. Accrued
a) Classification, recognition and initial measurement interest is recognized in profit or loss as finance income using
the effective interest rate method.
The Group classifies all its financial assets, at initial
recognition, into one of the categories listed below, which Receivables falling due within one year, as explained previously,
determines how the asset will be measured initially and are measured both initially and subsequently at their nominal
subsequently: amount unless they are credit-impaired.

• Financial assets at fair value through profit or loss In general, when the contractual cash flows of a financial asset
at amortized cost are modified as a result of financial difficulties
• Financial assets at amortized cost of the issuer, the Group tests the asset for impairment.

• Financial assets at fair value through equity These amounts are classified as current (less than a year) or
non-current (more than a year) depending on the period of
• Financial assets at cost settlement.

Given the Group’s activity, it only has financial assets at • Financial assets at cost
amortized cost and financial assets at cost. The Group includes, in any event, the following assets in this
category:
• Financial assets at amortized cost
The Group classifies a financial asset into this category, even • Equity investments in group companies, jointly controlled
if it is admitted to trading on an exchange, when the financial entities and associates (in the separate financial
asset is held within a business model whose objective is to statements).
collect contractual cash flows.
• Other equity investments whose fair value cannot be
In general, this category includes receivables from trade determined by reference to a quoted price in an active
transactions and receivables from non-trade transactions. market for an identical instrument or cannot be estimated
reliably, and derivatives in which the underlyings are these
Financial assets classified in this category are measured initially investments.
at fair value. In the absence of evidence to the contrary, this is
presumed to be the transaction price, which is equivalent to the • Contributions made under unincorporated joint venture or
fair value of the consideration given plus directly attributable similar agreements.
transaction costs. These are costs inherent in the transaction,
which are capitalized. • Any other financial asset classified initially in the portfolio
of financial assets at fair value through profit or loss
Nonetheless, trade receivables falling due within one year when it is not possible to obtain a reliable estimate of
for which there is no contractual interest rate and loans to fair value.

58 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 59

 The investments included in this category are initially • Financial assets at amortized cost
measured at cost, which is equivalent to the fair value of the At least at the end of each reporting period, the Group assesses
consideration delivered plus directly attributable transaction whether there is objective evidence that a financial asset,
costs. These are costs inherent in the transaction, which are or group of financial assets with similar risk characteristics
capitalized. assessed on a collective basis, is impaired as a result of one or
more events that occurred after initial recognition that result in
The investment is also subsequently measured at cost, less a reduction or delay in the estimated future cash flows due to
any accumulated impairment. debtor insolvency.

Contributions made under unincorporated joint venture Where such evidence exists, the impairment loss is calculated
agreements are measured at cost, increased or decreased by as the difference between the carrying amount of the asset
the share of profits or losses, respectively, that correspond and the present value of the future cash flows, including
to the Company as non-managing venturer, less impairment any cash flows from enforcement of collateral and personal
losses, if any. guarantees, expected to be generated by the asset discounted
at the effective interest rate calculated at initial recognition. For
b) Derecognition floating-rate financial assets, the effective interest rate at the
reporting date, in accordance with the contractual terms, is
Financial assets are derecognized when the contractual rights used. The Group uses formula-based approaches or statistical
to the cash flows from the financial asset expire or have been methods to determine impairment losses in a group of financial
transferred, provided that substantially all the risks and rewards assets.
of ownership have been transferred.
Impairment losses and reversals thereof where the amount
If the Group has neither transferred nor retained substantially of the impairment loss decreases due to an event occurring
all the risks and rewards, it derecognizes the financial asset after recognition are recognized as an expense or income,
when it has not retained control over that asset. If the Group respectively, in profit or loss. The reversal is limited to
retains control over the asset, it continues to recognize the the carrying amount of the asset that would have been
asset at the amount of the exposure to variability in the value recognized at the reversal date had no impairment loss been
of the transferred asset; that is, to the extent of its continuing recognized.
involvement in the financial asset. The associated liability is
also recognized. • Financial assets at cost
In this case, the impairment loss is measured as the
The gain or loss on derecognition of the financial asset is difference between the carrying amount and the recoverable
determined as the difference between the consideration amount. The recoverable amount is the higher of the fair
received net of attributable transaction costs, including value less costs to sell and the present value of future cash
any new asset obtained less any liability assumed, and the flows from the investment, estimated as either those from
carrying amount of the financial asset, plus any accumulated dividends expected to be received from the investee and
amount recognized directly in equity. The gain or loss is the disposal or derecognition of the investment, or from
recognized in profit or loss for the reporting period in which the share in the cash flows expected to be generated by
it arises. the investee in the ordinary course of business and from
disposal or derecognition. When estimating impairment of
c) Impairment of financial assets these types of assets, the investee’s equity is taken into
consideration, corrected for any unrealized gains existing at
The Group adjusts the carrying amount of financial assets with the measurement date, net of the related tax effect, unless
a charge to profit or loss when there is objective evidence that better evidence of the recoverable amount of the investment
the asset is impaired. in equity instruments is available.

60 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 61

 Impairment losses are recognized as an expense in profit or trade operations, and non-trade payables that are not
loss by directly reducing the carrying amount of the equity derivatives.
instrument. Where applicable, reversals of impairment are
recognized as income in profit or loss. The loss can only be Financial liabilities included in this category are initially
reversed up to the limit of the carrying amount of the investment measured at fair value. In the absence of evidence to the
that would have been disclosed at the reversal date had the contrary, this is the transaction price, which is equivalent to the
impairment loss not been recognized. fair value of the consideration, adjusted for directly attributable
transaction costs. These are costs inherent in the transaction,
d) Interest and dividends from financial assets which are capitalized.

Interest and dividends accrued on financial assets after Nonetheless, trade payables falling due within one year for
acquisition are recognized in profit or loss. Interest is which there is no contractual interest rate and called-up
accounted for using the effective interest rate method, while equity holdings expected to be settled in the short term are
dividends are recognized when the right to receive payment measured at their nominal amount, provided that the effect of
is established. not discounting the cash flows is immaterial.

If distributed dividends are clearly derived from profits They are measured subsequently at amortized cost. Accrued
generated prior to the acquisition date because amounts have interest is recognized in profit or loss as a finance cost using
been distributed which are higher than the profits generated by the effective interest rate method.
the investee since acquisition, the difference is accounted for
as a reduction in the carrying amount of the investment and not Nonetheless, payables falling due within one year measured at
recognized as income. Judgment about whether gains have the nominal amount, in accordance with the preceding section,
been generated by the investee is made based exclusively on continue to be measured at that amount.
profits recognized in the separate financial statements from the
acquisition date, unless the dividend charged to those profits Contributions received under unincorporated joint venture
clearly represents a recovery of the investment for the entity agreements or similar are measured at cost, increased or
receiving the dividend. decreased by the share of profits or losses, respectively, that
correspond to the non-managing venturers.
3.9 Financial liabilities
b) Derecognition
a) Classification, recognition and initial measurement
The Group recognizes a previously recognized financial liability
The Group classifies all its financial liabilities, at initial when the obligation is extinguished because the debtor has
recognition, into one of the categories listed below, which paid the creditor to discharge the liability (with cash or other
determines how the liability will be measured initially and goods or services) or the debtor is legally released from any
subsequently: responsibility for the liability.

• Financial liabilities at amortized cost. Derecognition of a financial liability is accounted for as

follows: the difference between the carrying amount of a
• Financial liabilities at fair value through profit or loss. financial liability (or part of that liability) extinguished and the
consideration paid, including attributable transaction costs
The Group only has financial liabilities at amortized cost. and any non-cash asset transferred or liability assumed, is
recognized in profit or loss for the reporting period in which
• Financial liabilities at amortized cost it arises.
This category includes financial liabilities arising on the
purchase of goods and services in the course of the Group’s

62 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 63

 3.10 Fair value 3.11 Inventories

Fair value is the price that would be received to sell an Inventories are measured at purchase price. The purchase
asset or paid to transfer a liability in an orderly transaction price comprises the amount invoiced by the seller, after
between market participants at the measurement date. Fair deducting any discounts, rebates or other similar items, plus
value is determined without any deduction for transaction any additional costs incurred to bring the goods to a saleable
costs that may be incurred on sale or other disposal. condition.
The amount an entity would receive or pay in a forced
transaction, involuntary liquidation or distress sale is not As the Group’s inventories do not require a period of more
considered fair value. than one year to be in a saleable condition, purchase price or
production cost does not include borrowing costs.
Fair value is estimated for a specific date and given that
market conditions can vary over time, that value might not The Group uses the weighted average cost method to allocate
be valid for another date. In addition, in estimating fair value to inventories.
value the Company takes into account the characteristics
of the asset or liability if market participants would take When the net realizable value of inventories is lower than cost,
those characteristics into account when pricing the asset the Club recognizes an impairment loss with an expense in the
or liability at the measurement date. income statement.

As a general rule, fair value is calculated by reference to a 3.12 Cash and cash equivalents
reliable market input. The fair value of financial assets and
liabilities for which there is an active market is determined Cash and cash equivalents include cash, current accounts,
using valuation models and techniques. Those models short-term deposits and purchases of assets under resale
and valuation techniques include referencing recent arm’s agreements which meet the following criteria:
length transactions between knowledgeable, willing parties,
if available, and the fair value of substantially identical • They are convertible to cash,
assets, discounted cash flow methodology and the models
widely used to value options. • They have a maturity of three months or less from the date of
acquisition,
In all instances the valuation techniques used must be
consistent with the methodologies widely accepted by • There is no significant risk of changes in value, and
and used in the market to set prices, using to the extent
possible the methodology that has proven the most reliable • They form part of the Group’s usual cash management strategy.
estimator of prices. The calculations rely on observable
market data and other factors market participants would For the purposes of the statement of cash flows, cash may
take into account when pricing the asset, minimizing the also include occasional overdrafts when these form an integral
use of subjective judgments or unobservable or unverifiable part of the Group’s cash management.
data.
3.13 Provisions
The Group assesses the effectiveness of the valuation
techniques it uses regularly using observable prices in The Group recognizes provisions when it has a present
recent transactions in the same asset class as is being obligation (legal, contractual, constructive or tacit) arising from
measured and prices based on data or indices that are past events that is known before the end of the financial year
observable in the market that are available and applicable. or reporting period, it is probable that an outflow of resources
will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.

64 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 65

 In other situations where no present obligation exists yet or there using the tax rates prevailing at the reporting date, including
is clear uncertainty with respect to the outcome of an event (e.g., any other adjustments for taxes from prior years. Companies
claims, appeals), the Group and its legal or tax advisors assess in the tax group distribute the tax charge so that the parent
the prospects of a future event that could result in a gain or loss for settles the tax assets and liabilities arising with subsidiaries
the Group. If the future occurrence of a particular event is highly from taxable profits or tax losses contributed by them to the
probable, the resulting contingent asset or liability is estimated. tax group.

Provisions are measured at the present value of the best estimate The Group recognizes deferred tax liabilities for all temporary
of the amount required to settle the obligation or transfer it to differences, except where disallowed under prevailing tax
a third party. Adjustments arising from the discounting of the legislation.
provision are recognized as a finance expense when accrued.
Provisions expiring within one year are not discounted where The Group recognizes deferred tax assets for all deductible
the financial effect is not material. Provisions are reviewed at the temporary differences, the carry forward of unused tax credits
end of each reporting period and adjusted to reflect the current and any unused tax losses. Deferred assets are recognized to
best estimate of the obligation at the date of authorization for the extent that it is probable that taxable profit will be available
issue of the consolidated financial statements. against which the deferred tax assets can be utilized, except
where disallowed by prevailing tax legislation.
3.14 Liabilities arising from long-term employee benefits
At the end of each reporting period, the Group reassesses
Neither the Group employees to which its collective labor recognized and previously unrecognized deferred tax assets.
agreement is applicable nor management are entitled to any Based on this analysis, the Group then derecognizes previously
supplementary pension benefits. recorded deferred tax assets when recovery is no longer
probable, or recognizes a previously unrecorded deferred tax
3.15 Income tax asset to the extent that it is probable that future taxable profit
will enable its application.
Income tax expense (tax income) for the year is calculated as
the sum of current tax expense (current tax income) resulting Deferred tax assets and liabilities are measured using the tax
from applying the corresponding tax rate to taxable profit (tax rates expected to prevail upon their reversal, based on tax
loss) for the year, less deductions and other tax relief, taking legislation approved, and in accordance with the manner in
into account changes during the year in recognized deferred which the assets are reasonably expected to be recovered and
tax assets and liabilities. The tax expense (tax income) is liabilities settled.
recognized in the income statement, except when it relates to
transactions recognized directly in equity, in which case the Deferred tax assets and deferred tax liabilities are not
related tax is likewise recognized in equity. discounted and are classified as non-current assets or non-
current liabilities.
Deferred taxes are recognized for temporary differences at the
reporting date between the tax bases of assets and liabilities 3.16 Current versus non-current classification
and their carrying amounts. The tax base of an asset or liability
is the amount attributed to it for tax purposes. Assets and liabilities are presented in the balance sheet based
on current/non-current classification. Accordingly, assets and
The tax effect of temporary differences is included in “Deferred liabilities are classified as current when they are associated with
tax assets” or “Deferred tax liabilities” on the balance sheet, the Group’s normal operating cycle and it is expected that they
as applicable. will be sold, consumed, realized or settled within that cycle;
they are expected to mature, or to be sold or realized within one
Current tax assets and liabilities are measured at the amount year; they are held for trading; or are cash and cash equivalents
expected to be recovered from or paid to the taxation authorities whose use is not restricted for a period of over one year.

66 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 67

 3.17 Revenue and expenses For each performance obligation identified, the Group determines
at contract inception whether it satisfies the performance
a) Recognition and measurement obligation over time or at a point in time.

In accordance with the accruals principle, revenue and expenses Revenue from performance obligations satisfied over time is
are recognized when the goods or services represented by them recognized in general on a straight-line basis over that period of time
take place, regardless of when actual payment or collection provided that the stage of completion or progress towards complete
occurs. Amounts received in a period related to income of the satisfaction of the contractual obligations cannot be measured.
subsequent period are recognized under liabilities in the balance
sheet as current or non-current accruals, as appropriate. For contractual obligations satisfied at a point in time, the
Amounts paid in a period related to expenses of the subsequent contract revenue is recognized on satisfaction at that date.
period are recognized under assets in the balance sheet as
current or non-current accruals, as appropriate. Revenue is recognized when it is probable that the profit or
economic benefits associated with the transaction will flow to
The Group recognizes revenue following a five-step process: the Group and the amount of revenue and costs incurred or to
be incurred can be measured reliably.
• Identify the contract(s) with the customer, understood as
an agreement between two or more parties that creates The recognition criteria for the main revenue by type are
enforceable rights and obligations. explained in Note 15.2.

• Identify the performance obligation or obligations in the • Measurement

contract, i.e. the promise to transfer goods or provide services
to the customer. Revenue from the sale of goods and the rendering of services
is measured at the monetary amount or, where applicable,
• Determine the transaction price, or the amount of consideration the fair value of the consideration received or receivable. The
to which it expects to be entitled from the contract in exchange consideration is the agreed price for the assets transferred to
for transferring promised goods or services to a customer. the customer less the amount of any trade discount, rebates or
similar items granted by the Group.
• Allocate the transaction price to the performance obligations
on a relative stand-alone selling price basis of each distinct b) Contract balances
good or service promised in the contract or, where applicable,
based on an estimate of the stand-alone selling price when it • Contract assets
is not directly observable.
Unconditional right to consideration
• Recognize revenue when (or as) the Group satisfies a When the Group has an unconditional right to consideration,
performance obligation by transferring a promised good or irrespective of whether control of the assets has been transferred,
service. A good or service is considered to be transferred it recognizes the right in the corresponding line items of trade
when the customer obtains control, so the amount of revenue receivables under current or non-current assets as appropriate
recognized is the amount allocated to the performance in accordance with its maturity and bearing in mind the normal
obligation satisfied. operating cycle. However, trade receivables that, while still within
the normal operating cycle, fall due in over one year (long-term) are
• Recognition classified as “Trade and other receivables” under current assets.

The Group recognizes revenue from a contract when it transfers Entitlement to consideration for the transfer of control
to the customer control of the promised goods or services (i.e., When the Group transfers control of a contract asset without
the performance obligation or obligations). having an unconditional right to receive revenue, the Group

68 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 69

 recognizes a right to consideration for the transfer of control. That recognizes any operating profit or loss related to management
right to consideration for the transfer of control is derecognized of its sponsorship income, calculated in accordance with the
when the Group has an unconditional right to that consideration. annual contribution of the “non-managing venturer.”
Contract assets are assessed for impairment the end of each
reporting period in the same manner as receivables. 3.20 Government grants

Contract assets are likewise presented within “Trade and other Monetary grants are measured at the fair value of the
receivables”. They are classified as current or non-current consideration awarded.
depending on their maturity.
Grants are classified as non-refundable when the conditions
Costs incurred to obtain a contract attaching to them are met, at which time they are recognized
Costs incurred to obtain a contract are included under current directly in equity, net of the related tax effect.
or non-current accruals, as appropriate.
Repayable grants are recognized as liabilities until they meet
• Contract liabilities the criteria for classification as non-repayable. Until then, no
income is recorded.
Contractual obligations
If a customer pays consideration or has a right to an amount of Grants awarded to finance specific expenses are recognized as
consideration that is unconditional before the Group transfers income in the reporting period in which the financed expenses are
a good or service to the customer, the Group recognizes a incurred. Grants awarded to acquire property, plant and equipment
contract liability when the payment is made or is due. or settle liabilities are recognized as income for the reporting period
in proportion with the depreciation charges for those assets.
These contract liabilities are presented within “Trade payables -
Other payables - Advances from customers”, or current or non- 3.21 Environmental assets and liabilities
current accruals on their maturity.
Expenses relating to decontamination and restoration work in
3.18 Foreign currency transactions contaminated areas, as well as the elimination of waste and other
expenses incurred to comply with environmental protection
The Group’s functional and presentation currency is the euro. legislation, are recognized in the year in which they are incurred,
unless they correspond to purchases of assets incorporated in
Foreign currency transactions are translated into euros at the equity to be used over an extended period. In this case, they
spot exchange rate prevailing at the date of the transaction. are recognized in the corresponding line of “Property, plant
and equipment” and depreciated using the same criteria as
Monetary assets and liabilities denominated in foreign currency described in Note 3.3 above.
are translated at the spot rate prevailing at the reporting date.
At June 30, 2024, the Group had not incurred any such
Exchange gains or losses arising on this process and on environmental expenditure or recognized any property, plant or
settlement of these assets and liabilities are recognized in the equipment of this kind in the balance sheet.
income statement for the financial year or reporting period in
which they occur. 3.22 Related party transactions

3.19 Joint operations Related party transactions are measured using the same criteria
described above.
In 2017/18, the Group signed an unincorporated joint venture
agreement related to management of its sponsorship revenue The Group considers members of the Club’s Board of Directors,
(Note 17.1.4), as regulated by articles 239 to 243 of the Spanish key managers, and the Real Madrid Foundation as related
Commercial Code. The Group, acting as “managing venturer” parties.

70 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 71

 4. SPORTS INTANGIBLE ASSETS AND NON-CURRENT 4.1 Description of the main movements in the period
ASSETS HELD FOR SALE
Additions of sports intangible assets relate to investments in
Reconciliation of the carrying amount of sports intangible new players for the professional football and basketball teams
assets at the beginning and end of the year: and include the amount of transfers and other acquisition costs
incurred in the related transactions.
2023/2024
Opening Additions and Retirements Transfers from Transfers to Closing The acquisition cost recorded in the period for intermediation
€ THOUSAND balance allowances and disposals current (*) current (*) balance or agency services, including the tax expense assumed
Men's football
for taxation on payments, amounted to €48,110 thousand
Cost 725,513 238,795 (53,453) 11,192 - 922,047 (2022/2023: €49,235 thousand).
Accumulated amortization (400,760) (117,258) 53,199 - - (464,819)
Impairment - (8,249) - - - (8,249)
Net carrying amount 324,753 113,288 (254) 11,192 - 448,979
Transfers relate to the reclassifications explained in Note 4.2
Non-current assets held for sale.
Women's football
Cost 410 20 (197) - - 233
Accumulated amortization (295) (109) 197 - - (207)
As explained in Note 3.6, the Group recognizes impairment
Impairment - - - - - - when there are clear indications and evidence of impairment of
Net carrying amount football 115 (89) - - - 26 its sports intangible assets up to the date of authorization of
Basketball
the financial statements. Impairment losses are reversed only
Cost 4,324 30 (2,760) - - 1,594 if the circumstances that gave rise to the impairment cease to
Accumulated amortization (4,213) (60) 2,733 - - (1,540) exist.
Impairment - - - - - -
Net carrying amount 111 (30) (27) - - 54
In this respect, the Group, where required and based on the
TOTAL NET CARRYING AMOUNT 324,979 113,169 (281) 11,192 - 449,059 best information available at the date of authorization for issue
* Transfers to/from current = Transfers to/from non-current assets held for sale.
of the financial statements, recognized impairment losses with
a write down to realizable value for a total of €8,249 thousand
2022/2023 (2022/2023: €11,299 thousand).

Opening Additions and Retirements Transfers from Transfers to Closing 4.2 Non-current assets held for sale
€ THOUSAND balance allowances and disposals current (*) current (*) balance
Men's football As explained in Note 3.5, the Group classifies a non-current
Cost 857,262 200,643 (340,623) 36,513 (28,282) 725,513 asset as held for sale if its carrying amount will be recovered
Accumulated amortization (564,232) (138,744) 296,425 - 5,791 (400,760) principally through a sale transaction rather than through
Impairment - (11,299) - - 11,299 -
Net carrying amount 293,030 50,600 (44,198) 36,513 (11,192) 324,753 continuing use and provided that the following requirements
are met: the asset is available for immediate sale, an active
Women's football
program to locate a buyer has been initiated, and the sale is
Cost 314 116 (20) - - 410
Accumulated amortization (213) (102) 20 - - (295) highly probable within a year. Non-current assets held for sale
Impairment - - - - - - are measured at the lower of their carrying amount and fair
Net carrying amount 101 14 - - - 115 value less costs to sell.
Basketball
Cost 5,264 60 (1,000) - - 4,324 At the end of the previous reporting period, the Group reclassified
Accumulated amortization (5,129) (79) 995 - - (4,213) certain sports intangible assets that met these requirements to
Impairment - - - - - -
Net carrying amount 135 (19) (5) - - 111 non-current assets held for sale. The net amount reclassified
was €11,192 thousand, which related to the assets’ fair value
TOTAL NET CARRYING AMOUNT 293,266 50,595 (44,203) 36,513 (11,192) 324,979 less costs to sell.
* Transfers to/from current = Transfers to/from non-current assets held for sale.

72 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 73

 The Club reclassified assets temporarily derecognized during 4.3 Other information
the present season for being loaned to other clubs to sports
intangible assets since they no longer met the requirements For the year ended June 30, 2024, the Group obtained revenue
for consideration as non-current assets held for sale at their of approximately €27,876 thousand (June 30, 2023: €99,837
carrying amount before classification as non-current assets; thousand) on disposals from the transfer of rights over several
i.e., €11,192 thousand (June 30, 2023: €16,523 thousand), players to other clubs. The net gain from all disposals after
and recognized a provision for impairment of €5,596 thousand deducting the carrying amount was €20,957 thousand (June
(June 30, 2023: €5,509 thousand). 30, 2023: €55,634 thousand) (Note 17.5).

For assets that were definitively derecognized, the Group Fully amortized player acquisition rights at June 30, 2024
utilized the impairment provision recognized for the purpose in amounted to €50,914 thousand (June 30, 2023: €114,301
an amount of €5,703 thousand (2022/2023: €41,217 thousand). thousand).

Summary of movements in the period: At June 30, 2024, there were no firm investment or firm player
transfer commitments (June 30, 2023: €145,000 thousand and
€0, respectively).
2023/2024
There were no player purchase options measured at either
Transfers to Utilization of
non-current allowance for Reversal of June 30, 2024 or June 30, 2023.
€ THOUSAND assets impairment impairment

Players added to the team - - - The average duration of the contracts of players signed to the
Players loaned out to other clubs 11,192 5,596 - National Professional Football League (LNFP for its initials in
Players derecognized - 5,703 Spanish) is five years.
Total 11,192 11,299 -

The Group’s policy is to arrange the insurance policies necessary

to cover any risk to which members of its professional football
2022/2023 and basketball squads may be exposed.
Transfers to Utilization of
non-current allowance for Reversal of
€ THOUSAND assets impairment impairment

Players added to the team 19,990 - 14,148

Players loaned out to other clubs 16,523 5,509 -
Players derecognized - 41,217 -
Total 36,513 46,726 14,148

74 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 75

 5. OTHER NON-SPORTS INTANGIBLE ASSETS Note 3.2 “Other non-sports intangible assets” describes the
most significant operating rights held by the Group at June 30,
Reconciliation of the carrying amount at the beginning and end 2024.
of the year:
The increase during the current period to “Other intangible
2023/2024 assets” was due primarily to the award in September 2023 of the
Opening Additions and Retirements Closing
administrative concession to subsidiary Real Madrid Estadio,
€ THOUSAND balance allowances and disposals Transfers balance S.L.U. to build and operate two underground car parks located
on both sides of the Santiago Bernabéu Stadium. Subsidiary
Cost:
Concessions 2,934 3,996 - - 6,930
Aparcamientos del Santiago Bernabéu, S.L. will operate the
Patents, licenses, trademarks, and similar rights 1,308 211 - - 1,519 concession, over a term of 40 years.
Computer software 21,876 28 - 2,147 24,051
Other intangible assets 141,211 392 - 1,013 142,616 “Concessions” includes the present value of the annual fee of
Advances 1,210 16,028 - (2,147) 15,091 €150,000, with year-on-year increases of 1%, payable to the
Total cost 168,539 20,655 - 1,013 190,207
Town Council over the concession term.
Accumulated amortization:
Concessions (2,577) (97) - - (2,674) “Advances” includes capitalized costs related to construction
Patents, licenses, trademarks, and similar rights (811) (113) - - (924) of the car parks which, as explained in Note 3.2, are recognized
Computer software (12,678) (1,705) - - (14,383) as intangible assets. Also included are developments in
Other intangible assets (125,692) (647) - - (126,339) progress related to the members and fans service platform and
Total accumulated amortization (141,758) (2,562) - - (144,320)
software for internal use by Group companies.
Impairment:
Computer software (45) - - - (45) 5.1 Other information

NET CARRYING AMOUNT 26,736 18,093 - 1,013 45,842 The following table presents a summary of the cost of fully
amortized non-sports intangible assets:
2022/2023
Opening Additions and Retirements Closing € THOUSAND 6/30/2024 6/30/2023
€ THOUSAND balance allowances and disposals Transfers balance

Cost: Concessions 2,103 2,103

Concessions 2,934 - - - 2,934 Patents, licenses, trademarks, and similar rights 351 221
Patents, licenses, trademarks, and similar rights 1,190 118 - - 1,308 Computer software 12,973 11,781
Computer software 13,027 - - 8,849 21,876
Other intangible assets 125,047 125,047
Other intangible assets 125,047 16,164 - - 141,211
Advances 5,081 4,978 - (8,849) 1,210 140,474 139,152
Total cost 147,279 21,260 - - 168,539

Accumulated amortization:
Concessions (2,530) (47) - - (2,577)
Patents, licenses, trademarks, and similar rights (704) (107) - - (811)
Computer software (12,107) (571) - - (12,678)
Other intangible assets (125,045) (647) - - (125,692)
Total accumulated amortization (140,386) (1,372) - - (141,758)

Impairment:
Computer software (45) - - - (45)

NET CARRYING AMOUNT 6,848 19,888 - - 26,736

76 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 77

 6. PROPERTY, PLANT AND EQUIPMENT 6.1 Description of the main movements in the period
Reconciliation of the carrying amount of property, plant and
Aside from minor investments in the Sports City, additions in
equipment at the beginning and end of the year:
the year related entirely to work on the Santiago Bernabéu
2023/2024 Stadium remodeling project, the major portion of which is nearing
completion.
Opening Additions and Retirements Closing
€ THOUSAND balance allowances and disposals Transfers balance
On May 8, 2019, the Board of Directors awarded the remodeling
Cost: contract to FCC Construcción, with a term of 39 months.
Sports stadiums and pavilions 325,325 - - 638 325,963
Other land and buildings 70,380 9 - - 70,389 The remodeling work is being carried out without affecting the
Technical installations and other items 122,326 8,010 (105) 502 130,733 matches scheduled or the stadium’s normal activities
Property, plant and equipment under construction and advances 891,701 267,515 - (2,153) 1,157,063
Total cost 1,409,732 275,534 (105) (1,013) 1,684,148 The new stadium presents an immersive and avant-garde image
thanks to a skin of steel bands and variable lines. The project
Accumulated depreciation:
includes a fixed and retractable roof over the playing field
Sports stadiums and pavilions (128,684) (6,983) - - (135,667)
protecting all seats.
Other buildings (16,231) (1,954) - - (18,185)
Technical installations and other items (98,893) (5,485) 83 - (104,295)
The demolition of the shopping center and construction of two
Total accumulated depreciation (243,808) (14,422) 83 - (258,147)
new towers on Paseo de la Castellana make the stadium safer and
make access and evacuation easier. Spectator traffic will be safer
Impairment
and smoother, with new ramps, escalators, elevators and more
Buildings and other property, plant, and equipment (667) - - - (667)
entrance doors. This reform includes removal of architectural
barriers to make room for nearly 1,000 new seats for people with
NET CARRYING AMOUNT 1,165,257 261,112 (22) (1,013) 1,425,334
various abilities.

2022/2023 Work is also being carried out to enhance the entire urban
surrounding, with a large square on the Castellana of more
Opening Additions and Retirements Closing than 20,000 square meters and another on the corner of Padre
€ THOUSAND balance allowances and disposals Transfers balance
Damián of 5,500 square meters. Calle Rafael Salgado Street will
Cost: be turned into a pedestrian street and the entire surroundings will
Sports stadiums and pavilions 324,518 616 - 191 325,325 be improved with a project covering over 66,000 square meters.
Other land and buildings 69,350 254 - 776 70,380
Technical installations and other items 120,380 1,264 - 682 122,326 All the spaces and galleries inside the stadium will be transformed so
Property, plant and equipment under construction and advances 538,361 354,989 - (1,649) 891,701 spectators can enjoy a new entertainment and service offering. The
Total cost 1,052,609 357,123 - - 1,409,732 current museum near the La Castellana will be much bigger and be
converted into a new interactive museum equipped with the latest
Accumulated depreciation: virtual reality technologies. The experience of the Bernabéu Tour
Sports stadiums and pavilions (121,777) (6,907) - - (128,684) will be extended with the creation of a panoramic tour around the
Other buildings (14,093) (2,138) - - (16,231) entire stadium and a new entertainment and food service offering,
Technical installations and other items (93,675) (5,218) - - (98,893) making it one of the main attractions for tourists visiting Madrid.
Total accumulated depreciation (229,545) (14,263) - - (243,808) It is a new stadium, with new, cutting-edge stores and a broader
offering and type of restaurants and gastronomic experiences.
Impairment
Buildings and other property, plant, and equipment (667) - - - (667) Technology is pioneering and an essential feature of this major
reform, with a spectacular video scoreboard that will be one of the
NET CARRYING AMOUNT 822,397 342,860 - - 1,165,257
most emblematic features of the new Santiago Bernabéu Stadium. It

78 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 79

 is a large digital stadium that turns into a large technological platform facility also includes a grace period for repayment of principal,
for interacting with fans, leading a real digital transformation. whereby Real Madrid will not begin to repay the financing until
July 30, 2024. Therefore, for these €225 million, Real Madrid
The original project was subsequently expanded to include will pay a fixed annual amount of approximately €10.5 million
a large underground greenhouse, which was not included as from July 30, 2024, until maturity on July 30, 2049.
because of its complexity, but a technological solution was
subsequently found. This greenhouse allows for the automatic In addition, pursuant to the authorization received from the
removal of the pitch and its preservation in optimal conditions Extraordinary General Assembly of Delegated Members held on
and in perfect shape to be used when a football match is to be November 9, 2023, on November 15, 2023, Real Madrid signed
held. In this way, the number of events that can be held without an extension of the financing of the works, for a loan amount
impacting the grass will be maximized. of €370 million and repayment over a 30-year period, with a
3-year grace period on repayment of principal. Real Madrid will
The new Santiago Bernabéu Stadium is one of Real Madrid’s not begin repaying the loan until November 15, 2027. From then,
biggest projects for the future, aiming to become a benchmark Real Madrid will pay a fixed annual amount of €26 million for
for the 21st century and an avant-garde and universal icon, these €370 million until maturity on November 15, 2053.
and marks a major upgrade for the Club, not to mention its
surroundings. It will be a modern, cutting-edge stadium, with As a result, loans taken out to finance the stadium’s remodeling
maximum comfort and safety, using latest generation technology total €1,170 million, with final maturity in November 2053 and
making it a venue where fans can feel one-of-a-kind sensations. carrying an average fixed interest rate of 3.2%. As at June 30,
2024, the loans had been drawn down in full.
The remodeling will also provide a new and important source
of revenue for the Club. Forecasts point to a sharp increase Real Madrid closed these deals without having to provide any
in revenue generation by the stadium on both match days mortgage guarantees (only pledges on certain stadium revenue)
and from the stadium’s daily commercial operation. Higher or accepting any restrictions on the Group s management or debt
net cash inflows will allow the Club to pay off the remodeling (only compliance with a certain coverage ratio between the pledged
investment, while it continues to grow and remain competitive stadium revenue and debt service, which it met), so it can carry out
in an increasingly tough international football environment. its normal activity with no impact from payment of the works.

To fund the remodeling project, on April 12, 2019, the Real Madrid After the addition of works not included originally in the project,
Board of Directors, under authorization by the Extraordinary the Group continued with execution. It expects the crucial part
General Assembly of Delegated Members held on September of the project to be completed by the end of 2024.
23, 2018, arranged financing of €575 million for a term of 30
years and a fixed rate of 2.5%. The financing was structured 6.2 Urban development units
through a loan with three drawdowns, one each in July 2019,
July 2020 and July 2021, in line with scheduled payments for the The Club acquired urban development units to existing plots
works. The facility also includes a three-year grace period for in the Valdebebas area. These units were registered with the
repayment of principal. Therefore, Real Madrid will pay a fixed respective property registers (as an annotation in the original
annual amount for these €575 million of approximately €29.5 property inscription).
million as from July 30, 2023, until maturity on July 30, 2049.
These development units have, for all intents and purposes, the
Subsequently, pursuant to the authorization received from the same consideration as the land contributed, since the units are
Extraordinary General Assembly of Delegated Members held ultimately what generate the right to obtain a plot adjudication once
on November 20, 2021, Real Madrid signed an extension of the the Reparcelling Project is prepared. In fact, both the purchase
financing of the works not originally included in the remodeling deeds and the registry inscriptions establish that these units will
project on December 7, 2021, via the extension of the €225 be applied to the resulting plot earmarked for private sports usage
million loan facility to 27 years, carrying a fixed interest rate of in the amount of 16,401.6 development units and approximately
1.53%. The amount was drawn down on May 31, 2022. The 1,200,000m2 of land under the Reparcelling Project.

80 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 81

 Real Madrid Club de Fútbol presented these development rights 6.4 Other information
to the “Parque de Valdebebas” Compensation Board, and on
November 25, 2009, definite approval was received from the As at June 30, 2024, fully depreciated items of property, plant,
Madrid City Council through administrative channels for the and equipment, mainly technical installations, amounted to
Reparcelling Project, by virtue of which Real Madrid won the €79,382 thousand (June 30, 2023: €72,766 thousand).
replacement plot. Real Madrid Club de Fútbol was duly registered
as the owner of said plot in Madrid Property Registries 11 and 33. As at June 30, 2024, the Group had purchase commitments
with suppliers for costs related to the Santiago Bernabéu
Following the definitive approval of the Reparcelling Project, the Stadium remodeling project (Note 6.1). Although there is still
Madrid taxation authorities issued payment notices to the former some work remaining to complete the project, the investment
owners for capital gains tax arising from the increase in the value made as at the reporting date represents the bulk of the total
of the related urban land. These payment notices were appealed, planned investment.
since both the former owners and the Club disagree, given that
the Club assumed the obligation to pay or put up surety for this As explained in Note 3.3, borrowing costs in 2023/2024
tax in the purchase deeds. Prior to the appeals process, the Club amounting to €29,727 thousand were capitalized (Note 17.6)
provided the required guarantees for the amounts claimed, which (2022/2023: €17,917), related to the interest accrued in the
total approximately €2.3 million. The majority of the rulings in the period on loans to fund the remodeling project (Note 6.1).
appeals process have been in favor of the Club. It will be able to
release the bulk of the amount guaranteed once the rulings are The Group’s policy is to arrange the insurance policies necessary
final and the guarantee is released. to cover the risks to which its property, plant and equipment are
exposed.
6.3 Operating leases
In previous years, the Club received a grant related to assets
• Group as lessee amounting to €9,607 thousand to finance the acquisition of
property, plant and equipment. The breakdown of these assets
As at June 30, 2024 and 2023, the Group had entered into is as follows:
operating leases on certain items of property, plant, and
equipment, primarily buildings, technical installations and 2023/2024
computer hardware. The lease terms range from one to five
Accumulated Net carrying
years, depending on the leased asset. In most cases, the € THOUSAND Cost depreciation amount
leases are updated in accordance with the annual CPI. The
Club is in no way encumbered by virtue of these leases. Buildings 9,607 (4,865) 4,742

Payments in the year ended June 30, 2024 on these leases

amounted to €3,337 thousand (June 30, 2023: €2,725 thousand) 2022/2023
(Note 17.4).
Accumulated Net carrying
€ THOUSAND Cost depreciation amount
Future minimum rentals payable under operating leases are as
follows: Buildings 9,607 (4,673) 4,934

€ THOUSAND 6/30/2024 6/30/2023

Within one year 2,648 2,029

As at June 30, 2024, this grant was recognized in equity for an
After one year but not more than five years 1,221 778 amount of €3,555 thousand (Note 12) (June 30, 2023: €3,700
More than five years thousand) and in deferred tax liabilities for €1,185 thousand
3,869 2,807 (June 30, 2023: €1,233 thousand) (Note 16.2).

82 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 83

 7. INVESTMENT PROPERTIES
Reconciliation of the carrying amount of investment properties at
the beginning and end of the year: “Land” includes mainly the plots related to the agreement
signed with the Madrid City Council, and correspond to the
2023/2024 sale of plots 1, zones 1 and 3, 4 and 5 zone 2 of the API 11.12
Opening Additions and Retirements Closing “Mercedes Arteaga, Jacinto Verdaguer” and the TER. 02. 189-
€ THOUSAND balance allowances and disposals Transfers balance A1 tertiary plot of the 4.01 UPN “Ciudad Aeroportuaria parque
de Valdebebas” obtained through the segregation of the TER.
Cost
02 189-A plot.
Land 13,620 - - - 13,620
Buildings 379 - - - 379
Installations 48 - - - 48 “Buildings” includes mainly capital expenditure by the Group
Construction in progress 15 11 - - 26 to equip a number of premises for hospitality and catering
Total cost 14,062 11 - - 14,073 usage, operated by third parties which pay Real Madrid Club
de Fútbol a royalty. The direct royalty revenue generated by
Accumulated depreciation
this activity in the year ended June 30, 2024 amounted to €158
Buildings (131) (8) - - (139)
thousand (June 30, 2023: €158 thousand).
Installations (47) - - - (47)
Total accumulated depreciation (178) (8) - - (186)
Impairment was recognized on the real estate assets, based
Impairment on market value for land and expectations regarding use for
Buildings - - - - - buildings.
Land (2,740) - - - (2,740)
Construction in progress - - - - - Future minimum rentals receivable under operating leases are
Total impairment (2,740) - - - (2,740) as follows:
NET CARRYING AMOUNT 11,144 3 - - 11,147
€ THOUSAND 6/30/2024 6/30/2023
2022/2023
Within one year 3,678 578
Opening Additions and Retirements Closing After one year but not more than five years 17,855 2,310
€ THOUSAND balance allowances and disposals Transfers balance
More than five years 19,375 1,050
Cost 40,908 3,938
Land 13,620 - - - 13,620
Buildings 379 - - - 379
Installations 48 - - - 48
Construction in progress 15 - - - 15
Total cost 14,062 - - - 14,062

Accumulated depreciation
Buildings (123) (8) - - (131)
Installations (46) (1) - - (47)
Total accumulated depreciation (169) (9) - - (178)

Impairment
Buildings - - - - -
Land (2,740) - - - (2,740)
Construction in progress - - - - -
Total impairment (2,740) - - - (2,740)

NET CARRYING AMOUNT 11,153 (9) - - 11,144

84 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 85

 8. FINANCIAL ASSETS 8.1 Non-current financial investments

The breakdown of financial assets, excluding investments in The breakdown and movement in this item are as follows:
group companies, jointly controlled entities and associates, is
as follows: 2023/2024
Opening Retirements Transfers to Closing
2023/2024 € THOUSAND balance Additions and disposals current balance

Equity Loans and other Equity instruments 2,773 - (428) - 2,345

€ THOUSAND instruments financial assets Total Non-current receivables from sports entities for player transfers 70,990 6,145 - (40,260) 36,875
Non-current trade receivables 29,362 - - (14,103) 15,259
Non-current financial assets
Other non-current receivables 3,047 3,856 (416) - 6,487
Financial assets at amortized cost - 59,901 59,901
Other financial assets 480 807 (7) - 1,280
Financial assets at cost 2,345 - 2,345
2,345 59,901 62,246 Total non-current financial investments 106,652 10,808 (851) (54,363) 62,246
Current financial assets
Financial assets at amortized cost (*) - 294,114 294,114
- 294,114 294,114 2022/2023
Opening Retirements Transfers to Closing
TOTAL FINANCIAL ASSETS 2,345 354,015 356,360 € THOUSAND balance Additions and disposals current balance

(*) Does not include public administrations. Equity instruments 2,773 - - - 2,773
Non-current receivables from sports entities for player transfers 55,539 50,268 - (34,817) 70,990
Non-current trade receivables 19,250 10,112 - - 29,362
Other non-current receivables 3,596 2,600 (2,002) (1,147) 3,047
2022/2023 Other financial assets 481 5 (6) - 480

Equity Loans and other Total non-current financial investments 81,639 62,985 (2,008) (35,964) 106,652
€ THOUSAND instruments financial assets Total

Non-current financial assets

Financial assets at amortized cost - 103,879 103,879 • “Equity instruments” includes the Group’s ownership interests
Financial assets at cost 2,773 - 2,773 in several unlisted entities that organize competitions in
2,773 103,879 106,652 which the Club’s professional teams participate and over
Current financial assets which the Group exercises neither control nor significant
Financial assets at amortized cost (*) - 214,675 214,675 influence. The Group has measured these investments at
- 214,675 214,675 cost rather than at fair value, as it does not have sufficient
information to determine their fair value reliably.
TOTAL FINANCIAL ASSETS 2,773 318,554 321,327

The most significant amount relates to European Superleague

(*) Does not include public administrations.
Company, S.L., in which Real Madrid Club de Fútbol has an
interest together with other European clubs to promote new
competitions.

• “Non-current receivables from sports entities for player

transfers” includes the amounts receivable from a number
of sports entities primarily relating to the sale of rights over
professional players. These amount do not accrue explicit
interest. The detail by maturity is as follows:

86 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 87

 € THOUSAND 6/30/2024 6/30/2023
• Trade receivables
Year 2 31,585 37,691
Year 3 1,890 28,957 The balance of “Trade receivables” is presented net of loss
Year 4 and beyond 3,400 4,342 allowance. Changes in loss allowance:
36,875 70,990
€ THOUSAND 6/30/2024 6/30/2023

The aforementioned amounts are recognized using the amortized Initial loss allowance 18,412 19,642
Arising during the year (Note 17.4) 1,031 4,356
cost method, which includes the financial effect of discounting. Utilized during the year (Note 17.4) (4,162) (769)
Accrued finance income in the year ended June 30, 2024 amounted Unused amounts reversed (Note 17.4) (232) (4,453)
to €1,279 thousand (June 30, 2023: €1,474 thousand) (Note 17.6). Transfer in the year - (364)

Additions during the year corresponded mainly to the sale of player Final loss allowance 15,049 18,412

transfer rights. Transfers to current liabilities include balances

on loans which fall due within one year from the date of the The breakdown of foreign currency balances included in this
accompanying balance sheet. item as at June 30, 2024 is as follows:

• “Non-current trade receivables” includes outstanding amounts Foreign currency

Thousands amount Euro amount
receivable on trade transactions with long-term maturities arising
from multi-year sponsorship agreements. US dollars 2,519 2,353
Pound sterling 130 154
• “Other non-current receivables” includes primarily amounts Australian dollars 24 15

receivable on basketball player disposals and other receivables

Total 2,522
from several entities.

8.2 Trade and other receivables The breakdown of foreign currency balances included in this
item as at June 30, 2023 is as follows:
The breakdown of “Trade and other receivables” is as follows:
Foreign currency
Thousands amount Euro amount
€ THOUSAND 6/30/2024 6/30/2023
US dollars 3,879 3,570
Trade receivables (Note 17.1) Pound sterling 43,352 50,510
Stadium revenues 70,696 8,504 Australian dollars 24 15
Broadcasting rights 1,094 715
Marketing revenues 104,704 74,123
Total 54,095
176,494 83,342
Receivables from sports entities
Player transfers 48,366 58,557
Other receivables from sports entities (Note 17.1) 14,629 17,094 • Current receivables from sports entities
62,995 75,651
Other financial assets The balance of “Current receivables from sports entities” is
Other receivables 33,198 37,630
Personnel 21,427 18,052
presented net of loss allowance. Changes in loss allowance:
54,625 55,682

Total current financial assets 294,114 214,675 € THOUSAND 6/30/2024 6/30/2023

Initial loss allowance 206 181
Current tax assets and other (Note 16) 4,792 12,076
Arising in the year (Note 17.4) - 25
Other receivables from public administrations (Note 16) 47,518 61,765
Utilized in the year - -
Madrid City Council for the EU Las Tablas proceedings (Note 13.4) 23,526 23,526
Unused amounts reversed (Note 17.4) (36) (28)
Madrid City Council for the property tax Adjustments (Note 13.4) 7,913 -
Total receivables from public administrations 83,749 97,367 Transfer in the year 28 28

TOTAL TRADE AND OTHER RECEIVABLES 377,863 312,042 Final loss allowance 198 206

88 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 89

 “Other receivables from sports entities” as at June 30, 2024 includes 11. EQUITY - CAPITAL AND RESERVES AND NON-CONTROLLING
a balance with the National Professional Football League of €3,975 INTERESTS
thousand confirmed with the latter (June 30, 2023: €2,710 thousand).
The reconciliation of “Capital and reserves” at the beginning
The breakdown of foreign currency balances included in this item
and end of the year is shown in the statement of changes in
as at June 30, 2024 is as follows:
equity.
Saldo en moneda
importes en miles distinta del euro Saldo en euros
• Reserves
Libras Esterlinas (LIB) 28.881 34.123
34.123 “Reserves” consists mainly of the initial endowment and
subsequent contributions arising from the distribution of profits.
The breakdown of foreign currency balances included in this item In addition, the impact of the transition to the new General
as at June 30, 2023 is as follows: Accounting Plan in Spain were recognized under this item
Saldo en moneda which, as required therein, must be recorded in unrestricted
importes en miles distinta del euro Saldo en euros reserve accounts.
Libras Esterlinas (LIB) 43.273 50.248
• Revaluation reserve RD 7/96
50.248

The revaluation reserve allocated by the Club in 1996/1997

• Madrid City Council for the property tax adjustments
may be used to offset tax losses or to increase the “Reserves”
This amount reflects the total excess amounts paid by the Club account or unrestricted reserves, once the revalued assets
for property taxes on Real Madrid City for the 2010 to 2023 have been fully depreciated or derecognized from inventories.
periods as the value for tax purposes did not match the amounts
of the property taxes charged. Claims have been submitted and • Revaluation reserve law 16/2012
are in different legal stages, but the Town Council has yet to
refund the excess amounts. Nevertheless, the Group considers In 2013/2014 the Club availed itself of the balance sheet
collection of the amount recognized to be highly probable. revaluation provided in Law 16/2012 of December 27 (Note
2.5). Amounts arising from the accounting revaluations were
9. INVENTORIES recognized under “Revaluation Reserve Law 16/2012 of
The value of inventories in the balance sheet as at June 30, 2024 was December 27”. Since the period for verifying the revaluation by
€18,141 thousand (June 30, 2023: €9,271 thousand) and included a the Taxation Authorities has expired, the balance of this account
write-down of €292 thousand (June 30, 2023: €292 thousand). may be used to offset losses and increase share capital, or after
10 years have transpired from the date of the balance sheet
10. CASH AND CASH EQUIVALENTS in which the revaluations were made, allocated to unrestricted
reserves.
The breakdown of these items is as follows:

€ THOUSAND 6/30/2024 6/30/2023 This balance may only be distributed, indirectly or directly,
when the revalued assets have either been fully depreciated,
Demand current accounts 208,265 253,357 disposed of or derecognized.
Cash and cash equivalents 208,265 253,357
• Capitalization reserve
The cash balance as at June 30, 2024, was composed of:
In accordance with article 25 of the CIT Law, the Group includes
• €126 million in the cash account related to the stadium in the calculation of income tax a reduction in taxable profit for
remodeling project. the year of 10% of the increase in equity of the prior year, up to
10% of taxable profit for the year.
• €82 million in the Group’s general cash accounts.

90 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 91

 During the current year, the Group allocated the “Capitalization 13. PROVISIONS AND CONTINGENCIES
reserve” in compliance with the requirements of the CIT Law to
be eligible for this reduction. This reserve is restricted for a period 13.1 Non-current provisions
of five years.
Carrying amount at the beginning and end of the year:
• Non-controlling interests
2023/2024
The balance of “Non-controlling interests” reflects the 2%
shareholding and the share of profit for the year attributable to Unused
Opening Airisng amounts Closing
Real Madrid Aparcamientos del Santiago Bernabéu, S.L. as non- € THOUSAND balance in the year Utilized reversed Net transfers balance
controlling shareholder (see Note 1).
Other provisions 45,833 15,490 (18,307) (4,847) (4,930) 33,239

12. EQUITY - GRANTS, DONATIONS, AND BEQUESTS RECEIVED Total non-current provisions 45,833 15,490 (18,307) (4,847) (4,930) 33,239

Changes in non-repayable capital grants included the

consolidated statement of changes in equity: 2022/2023
Unused
2023/2024 Opening Airisng amounts Closing
€ THOUSAND balance in the year Utilized reversed Net transfers balance
Amounts
transferred to Other provisions 66,014 8,466 (8,536) (11,613) (8,498) 45,833
Opening Tax effect of profit or loss Tax effect of Closing
€ THOUSAND balance Additions additions (Note 17.1) transfers balance
Total non-current provisions 66,014 8,466 (8,536) (11,613) (8,498) 45,833
Non-repayable grants 3,700 - - (193) 48 3,555

Total non-repayale grants 3,700 - - (193) 48 3,555

This year, based on available estimates, the Group recognized
provisions for liabilities and charges of €15,490 thousand to
cover certain risks (2022/2023: €8,466 thousand).

2022/2023 In addition, in 2023/2024, the Group utilized €18,307 thousand

Amounts
of provisions for their intended purpose (2022/2023: €8,536
transferred to thousand) and reversed €4,847 thousand of unused provisions
Opening Tax effect of profit or loss Tax effect of Closing since the circumstances that gave rise to them no longer
€ THOUSAND balance Additions additions (Note 17.1) transfers balance
existed (2022/2023: €11,613 thousand).
Non-repayable grants 3,844 - - (192) 48 3,700

Total non-repayable grants 3,844 - - (192) 48 3,700

The grants awarded are mainly grants related to assets from

by sports bodies, primarily the National Professional Football
League, Spain in conjunction with certain capital expenditure
made by the Club during the 1996/1997 season (Note 6.4).

The Club’s Board believes it fulfilled all the conditions attaching

to the grants for consideration as non-repayable.

92 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 93

 13.2 Current provisions The bulk of the amount drawn down on guarantees with indefinite
maturity relate to guarantees issued to ensure fulfillment of
Carrying amount at the beginning and end of the year: the obligations related to urban work and waste treatment
during the stadium remodeling project, to claims arising from
2023/2024 settlement of tax on the increase in the value of urban land in
Valdebebas (Note 6.2), and to guarantees provided to comply
Unused
Opening Arising amounts Closing with the commitments of the grant of a license to broadcast
€ THOUSAND balance in the year Utilized reversed Net transfers balance an HD channel through TDT and the concession to build and
Current provisions for liabilities and charges 53,022 32,635 (29,243) (3,043) 4,930 58,301 operate two car parks around the Santiago Bernabéu Stadium.

Total current provisions 53,022 32,635 (29,243) (3,043) 4,930 58,301 No liabilities are expected to arise from these guarantees.

2022/2023 13.4 Commitments, contingent assets, and liabilities

Unused For some of the following agreements, information is provided

Opening Arising amounts Closing
€ THOUSAND balance in the year Utilized reversed Net transfers balance regarding different issues without any indication of financial
amounts, as this is confidential commercial information and its
Current provisions for liabilities and charges 70,985 9,878 (36,339) - 8,498 53,022 disclosure could be damaging for the Group.
Total current provisions 70,985 9,878 (36,339) - 8,498 53,022
1. As at June 30, 2024, variable collection rights from different clubs
and image/sponsorship contracts were recognized amounting
In the current year, the Group recognized provisions for liabilities to €16,050 thousand (June 30, 2023: €21,050 thousand), while
and charges amounting to €32,635 thousand (2022/2023: liabilities related to these variable rights amounting to €33,750
€9,878 thousand) to cover certain risks that could materialize thousand were recognized (June 30, 2023: €6,000 thousand).
in the short term.
There are also potential assets related to agreements
Meanwhile, it utilized provisions for their intended purposes with sports entities and sponsorship agreements that are
in 2023/2024 in an amount of €29,243 thousand (2022/2023: contingent upon fulfillment of established sports objectives in
€36,339 thousand) and reversed €3,043 thousand of unused future seasons. In the unlikely event that all the objectives were
provisions (2022/2023: €0). met, the maximum amount to be received over the term of
all the agreements up until their expiration would be €41,950
13.3 Guarantees and deposits given thousand (June 30, 2023: €74,150 thousand).

The Group has granted guarantees and deposits to third parties In addition, there are potential liabilities arising from agreements
for different purposes. with sports entities that would be triggered if certain sports
objectives are achieved in future seasons. In the unlikely event
The breakdown of these guarantees by maturity is as follows: that all the objectives were to be met, the maximum amount
to be recognized over the term of all the agreements up until
€ THOUSAND 6/30/2024 6/30/2023 their expiration would amount to €36,250 thousand (June
Indefinite 28,817 40,616
30, 2023: €63,000 thousand). If payment were made, these
2022/2023 - - amounts would be correlated to increased revenue from sports
2023/2024 - - competitions, especially the Champions League.
2024/2025 169 700
2025/2026 700 - 2. On July 29, 2011, an agreement was signed and ratified
2028/2029 173 -
by public deed on December 21, 2011 with the Madrid City
Total guarantees and deposits given 29,859 41,316 Council legalizing the earlier agreements entered into between
the two parties on May 29, 1998 and December 20, 2001.

94 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 95

 This agreement included compensation from the Madrid Regarding the main legal proceeding, on April 25, 2012, a claim
City Council due to the legal impossibility of transferring was filed before the Court against the agreement signed on July
the entire “Las Tablas” plot as stipulated in the agreement 29, 2011, seeking its annulment and restitution of the assets to
signed on May 29, 1998, as well as Real Madrid Club de their situation prior to the signing of the agreement, along with
Fútbol’s compensation for breach of the main obligation of the related cancellation of any files on register, and requiring a
the underground parking lot on the Paseo de la Castellana’s new appraisal of the obligations arising from the agreements
lateral section established in the Agreement dated December signed in 1991 and 1998. The Administrative Appeals court
20, 2001. handed down a ruling on October 10, 2013, notified on October
15, 2013, rejecting the appeal and upholding the sentence,
The Madrid City Council paid the compensation by transferring which was ruled as final through an organization procedure
a plot of land located between Rafael Salgado, Paseo de la dated November 20, 2013.
Castellana, and Concha Espina on API 05.12 “Santiago
Bernabéu”, recognized in property, plant and equipment (Note For its part, the European Commission notified Spain of its decision
6) and Plots 1, zone 1 and 3, 4 and 5 Zone 2 of API 11.12 to initiate proceedings regarding alleged State aid arising from the
“Mercedes Arteaga, Jacinto Verdaguer” and the tertiary plot appraisal of a plot of land located in Las Tablas (Madrid), which the
TER. 02 189-A1 of UNP 4.01 “Ciudad Aeroportuaria parque Madrid City Council was forced to turn over to Real Madrid Club
de Valdebebas” obtained by segregating plot TER.02 189- de Fútbol, in compliance with a land-swap agreement signed by
A. The “Mercedes Arteaga, Jacinto Verdaguer” plots and the the parties in 1998. Due to the legal impossibility of handing the
Valdebebas tertiary plot are recognized under investment plot over, it was appraised by the City Council at its value for tax
properties (Note 7). purposes, and replaced by other land of equivalent value.

All the property, plant, and equipment included in the scope On July 4, 2016, the European Commission issued a decision
of the agreement were appraised by the Technical Services concluding that the Club obtained an advantage of €18.4
Department of the Sub-Directorate General of Urban million from the over-evaluation of a plot of land. The Club,
Adaptation under the General Directorate for Town Planning considering that this did not constitute State aid since the Club
Management of the Government, Development and Housing received, via the delivery of other land, an amount equivalent
Area. to that which it was entitled to receive, appealed this decision
before the General Court of the European Union seeking the
At the end of each reporting period, the Group engages an annulment of the decision.
independent expert to appraise its real estate assets (see Note
3.6), recognizing an impairment loss to reduce the carrying Irrespective of the appeal, on October 28, 2016, the Club paid
amount of the assets to market value where appropriate. The the City Council the required €18.4 million plus €1.9 million of
impairment loss in the year ended June 30, 2024, amounted late payment interest (for a total of €20.33 million).
to €2,740 thousand (Note 7), unchanged from the year before
since the appraisal of the market value of the land was broadly On May 22, 2019, the General Court of the European Union
unchanged. issued its judgment, annulling the contested decision of the
European Commission of July 4, 2016, which concluded that
On March 21, 2012, Madrid Federal Court of Appeals 14 upheld the Madrid Town Council granted State aid to Real Madrid
the request for an injunction filed regarding the agreement of €18.4 million. The European Commission had two months
between the Club and the Madrid City Council on July 21, from notification of the ruling (i.e. to July 23, 2019) to bring
2011, entailing suspension of enforcement of the agreement. an appeal before the European Court of Justice. It did not file
Both the Club and the City Council appealed the injunction, an appeal, so the ruling became final during 2019/2020. As
and on July 12, 2012, the Administrative Appeals section of a result, Real Madrid Club de Fútbol claimed reimbursement
the Madrid Supreme Court handed down a sentence revoking of undue revenue with the Madrid City Council. It requested
the injunction issued by the Judge from the Madrid Court of reimbursement of the €20,330 thousand paid on October 28,
Administrative Appeals 14, considering that there were no 2016, plus late payment interest from that date to the date
grounds for the injunction. of the reimbursement. Accordingly, in the 2020/2021 season,

96 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 97

 the Club recognized in the income statement the income from In addition, the previous year the Club was subject to a tax
the reimbursement and accrued late payment interest for a audit regarding the EU case by the Spanish taxation authorities.
total of €23,145 thousand. It recognized the related receivable This procedure was resolved without requiring any material
from the City Council under trade and other receivables in the adjustment to the economic loss estimated by the Club.
balance sheet since the reimbursement has yet to be made.
In light of this situation, in FY 2016/2017, the Club commenced
During 2021/2022, the Club learned that the Commission, a procedure to claim reimbursement of the amount of economic
using a real estate expert, appraised the plots of land given to loss caused by the discriminatory treatment of the legislation,
the Club by the City Council as compensation for the appraisal plus late payment interest. It subsequently filed an appeal with the
of the land of Las Tablas according to the 2011 agreement. Supreme Court. On February 12, 2019, the Supreme Court issued
The result of this new appraisal was similar to the one used in its judgment, rejecting the appeal and considering unjustified the
the agreement. After the Commission reopened the procedure claim for reimbursement on the grounds that the liability suit was
for State aid, this appraisal was performed as provided for in brought before there was any effective loss since the Commission’s
the 2019 ruling of the EU General Court, which rendered the decision was not final as other clubs had contested it and since
Commission’s state aid decision null on the grounds that it the procedure for recovering the State aid granted had just begun
had failed to appraise those plots when it made its decision. when the financial liability claim was lodged.
Following this assessment, the Commission will likely defend
the legality of the decision annulled and issue a new decision On February 26, 2019, the General Court of the European Union
on State aid for a similar amount to the one issued in 2016. issued a judgment annulling the Commission’s decision of July
4, 2016 classifying the tax regime of four Spanish professional
As a result of this situation, although the Club and its expert football clubs as State aid. The Commission appealed this
advisors disagree strongly with the appraisals of both the Las ruling before the Court of Justice, which on March 4, 2021
Tablas land and the plots and will therefore continue to file overturned the General Court’s ruling.
the appropriate appeals, the Club has recognized a provision
amounting to €23,145 thousand (Note 8.2) to cover the potential On April 24, 2019, the taxation authorities ruled on the
risk of the receivable from the City Council not being paid, at procedure for recovering State aid, rejecting the request for
least in the near future. reimbursement presented by the Club. It considered that the
reimbursement arises directly from the Commission decisions
3. In December 2013, the European Commission notified Spain annulled by the General Court, so the request should be
of its decision to commence proceedings regarding alleged denied. In addition, the recovery of the aid is not warranted
State aid to different Spanish football clubs, including Real since it would imply the return of the €7 million higher amount
Madrid Club de Fútbol, for applying legislation to this type of taxed relative to the general regime claimed by the Club and
entity that, for tax purposes, included a lower tax rate. recognition of tax assets for an equal amount, which would go
against the purpose pursued in the proceedings of State aid.
On July 4, 2016, the European Commission issued a decision
in which it considered that by being taxed at a lower rate, the The Club filed an appeal against the decision by the Tax Agency
clubs benefited by an estimated €0 to €5 million per club, the that is pending a vote on and ruling by the National Court of
precise amount of which the Spanish authorities needed to Administrative Appeals.
determine on a case-by-case basis. The Club considers that
the application of this legislation did not constitute state aid, Also, after the Commission’s decision was considered final
since the tax benefits come in addition to other prejudices; through a ruling by the Court of Justice of the European Union
an analysis of the years contemplated by the European of March 4, 2021, the Club, on March 4, 2022, refiled its claim
Commission regarding the Club’s tax returns showed that the for reimbursement against the State, requesting compensation
Club would have suffered economic damage amounting to €7 of €6,631 thousand (equivalent to the excess taxation borne
million had it been taxed as a limited liability company. This by the Club from FY 1999/00 to FY 2014/15, compared to the
favorable economic assessment for the Club was also included tax it would have borne had it been taxed under the general
in the European Commission’s decision of July 4, 2016. regime) plus related interest.

98 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 99

 4. On April 30, 2015, Royal Decree Law 5/2015 governing the being discussed between the parties. Therefore, in 2018, as
joint operation of TV rights was approved. This Royal Decree provided for in the agreement, the Club applied for arbitration
became effective in the 2016/17 season, marking the first year by the International Court of Arbitration of the International
that clubs no longer had individual rights. Chamber of Commerce.

Real Madrid filed an appeal against this agreement with The Arbitration Court issued a ruling in favor of IPIC on May 3,
the LFP in its Assembly held during the 2015/2016 season 2023 (notified on May 12, 2023), but the decision did not have
regarding the distribution of the year’s TV broadcast rights, as any impact on the consolidated financial statements since it
it considered that since the Royal Decree had not yet entered entailed a claim over future income.
into force during the season, the distribution of the capital
gains generated by the overall management of the individual As a result of this ruling, during the current period the Group
contracts made by the LFP was not yet applicable. It considered adjusted the invoices in dispute. The adjustments did not have
that, in accordance with the LFP bylaws for the distribution of a significant impact on the consolidated financial statements
the remaining joint LFP income (e.g. sponsorships, advertising, since provisions had been recognized for the full amounts.
football pool revenue), the distribution should be made by
attributing 60% of income to the 20 first division clubs (an 14. FINANCIAL LIABILITIES
even 3% each), and 40% for the 22 second division clubs (an
even 1.82% each). Failing this, Real Madrid proposed an even The breakdown of “Financial liabilities” is as follows:
distribution between the 42 LFP clubs.
2023/2024
A decision on the appeal was handed down on June 29, 2023,
by the National Court of Administrative Appeals partially € THOUSAND
Bank
borrowings
Other financial
liabilities Total
upholding the appeal. However, regarding the specific part
related to the distribution referred to above, the Court stated Non-current financial liabilities
Financial liabilities at amortized cost
that it was not the court of competent jurisdiction for ruling on Non-current loans and borrowings 37,644 1,209,947 1,247,591
this matter. Non-current payables - 6,303 6,303
37,644 1,216,250 1,253,894
Current financial liabilities
5. In October of 2014, the Club signed an agreement with Financial liabilities at amortized cost
International Petroleum Investment Company (IPIC) as its Current loans and borrowings 39,390 176,336 215,726
new sponsor for the 2014/15, 2015/16 and 2016/17 seasons. Trade and other payables (*) - 362,417 362,417
39,390 538,753 578,143
In December 2014, the sponsorship agreement was partially
assigned by IPIC to CEPSA. This assignment was still effective TOTAL FINANCIAL LIABILITIES 77,034 1,755,003 1,832,037
at June 30, 2017. The agreement with IPIC included the
possibility of extending the sponsorship agreement for another (*) Does not include public administrations.

two seasons, which occurred de facto in the 2017/2018 season

2022/2023
according to Club criteria. Therefore, last season the related
invoices were issued. Bank Other financial
€ THOUSAND borrowings liabilities Total

The agreement stated the possibility of IPIC having Stadium Non-current financial liabilities
Financial liabilities at amortized cost
naming rights in upcoming seasons, in which case the amounts Non-current loans and borrowings 76,573 843,722 920,295
receivable and the term of the agreement would increase 76,573 843,722 920,295
significantly. Current financial liabilities
Financial liabilities at amortized cost
Current loans and borrowings 38,509 245,827 284,336
The effectiveness of the naming right was contingent on Trade and other payables (*) - 271,763 271,763
acceptance by IPIC to comply with certain legal requirements 38,509 517,590 556,099

regarding town planning. Although Real Madrid notified IPIC of TOTAL FINANCIAL LIABILITIES 115,082 1,361,312 1,476,394
compliance prior to June 30, 2017, this compliance was still
(*) Does not include public administrations.
100 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 101
 14.1 Non-current loans and borrowings June 30, 2023
The breakdown of “Non-current loans and borrowings” is as follows: Subsequent
€ THOUSAND 2023/2024 2024/2025 2025/2026 2026/2027 years Total
€ THOUSAND 6/30/2024 6/30/2023 Bank borrowings 38,351 39,046 37,613 - - 115,010
Bank borrowings 37,644 76,573
• Other financial liabilities
Other financial liabilities
Suppliers of fixed assets 38,610 32,960 The breakdown of this item by year of maturity is as follows:
Sports entities for player transfers 39,465 25,994
Other financial liabilities 1,131,872 784,768
1,209,947 843,722
June 30, 2024
Subsequent
TOTAL NON-CURRENT LOANS AND BORROWINGS 1,247,591 920,295
€ THOUSAND 2025/2026 2026/2027 2027/2028 2028/2029 years Total

Suppliers of fixed assets 29,220 3,247 1,209 122 4,812 38,610

• Bank borrowings
Sports entities for player transfers 39,465 - - - - 39,465
Other financial liabilities 23,381 24,051 30,929 31,788 1,021,723 1,131,872
In April 2020, the Group took out four bank loans with four
different banks for a total amount of €155,000 thousand. The
Total 92,066 27,298 32,138 31,910 1,026,535 1,209,947
loans are backed by Spain’s official credit institute, Instituto de
Crédito Oficial (ICO), as part of the facilities provided by the
government to mitigate the impact of COVID-19. These loans June 30, 2023
originally matured at 5 years, with a 1-year grace period for
Subsequent
payment of principal. Subsequently, both the grace period and € THOUSAND 2024/2025 2025/2026 2026/2027 2027/2028 years Total
the maturity were extended by one year in accordance with
RDL 34/2020 of November 17. Suppliers of fixed assets 31,131 1,451 71 127 180 32,960
Sports entities for player transfers 25,994 - - - - 25,994
The nominal amount of outstanding principal as at June 30, Other financial liabilities 23,071 23,381 23,876 24,383 690,057 784,768
2024, on the four loans stood at €37,683 thousand, with long-
term maturities net of expenses of €37,644 thousand (June 30, Total 80,196 24,832 23,947 24,510 690,237 843,722
2023: €76,659 thousand and €76,573 thousand, respectively).

Meanwhile, the Group had credit facilities as at June 30, 2024 “Suppliers of fixed assets” includes, in addition to borrowings
totaling €395,000 thousand, with no amounts drawn down and for purchases of property, plant and equipment, non-sports
of which €370,000 thousand have long-term maturities (June intangible assets, and investment properties, liabilities arising
30, 2023: €265,000 thousand, with no amounts drawn down from managing intermediation services in player acquisitions or
and of which €125,000 thousand had long-term maturities). renewal, with long-term maturities. “Sports entities for player
acquisitions” includes amounts owed on player acquisitions.
Virtually all ICO transactions are at fixed rates, while the rest These payables do not bear explicit interest. These amounts
are floating-rate borrowings indexed to the Euribor rate plus a were measured at amortized cost, which includes the financial
market spread. effect of discounting. Accrued finance expenses in the year
ended June 30, 2024, amounted to €5,664 thousand (June 30,
The repayment schedule for the nominal amounts of long- and
2023: €1,618 thousand).
short-term loans is as follows:
The balance of “Other financial liabilities” at June 30, 2024
June 30, 2024
includes unmatured long-term principal and interest on loans
Subsequent taken out to fund the stadium remodeling (see Note 6.1). These
€ THOUSAND 2024/2025 2025/2026 2026/2027 2027/2028 years Total loans have mandatory debt service coverage ratios throughout
Bank borrowings 39,030 37,683 - - - 76,713 the contractual term. All of the covenants were met as at June
30, 2024.

102 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 103
 There were no non-current loans and borrowings denominated • Other financial liabilities
in foreign currency as at June 30, 2024 and 2023.
Other financial liabilities include balances of the same items as
14.2 Non-current payables in Note 14.1; i.e., payables to suppliers of fixed assets, payables
to sports entities for player transfers, and loans from companies
The breakdown of this item by year of maturity is as follows: to fund stadium remodeling work.

Subsequent In 2023/2024, payments for managing intermediation in

€ THOUSAND 2025/2026 2026/2027 2027/2028 2028/2029 years Total player acquisition, renewal and transfer amounted to €51,202
Non-current payables 1,333 4,970 - - - 6,303
thousand (2022/2023: €43,136 thousand).

14.4 Trade and other payables

This item includes payables for long-term sports personnel
contract bonuses. The breakdown of “Trade and other payables” is as follows:

These amounts were measured at amortized cost, which € THOUSAND 6/30/2024 6/30/2023
includes the financial effect of discounting. Accrued finance Trade payables 113,522 82,854
expenses in the year ended June 30, 2024, amounted to €479 Marketing payables 18,688 4,074
thousand. Sports entities for services rendered 10,679 10,058
Sports personnel 205,188 163,246
Non-sports personnel 14,340 11,606
14.3 Current loans and borrowings Total financial liabilities 362,417 271,838

The breakdown of “Current loans and borrowings” is as follows: Other payables to public administrations (Note 16) 43,141 24,052
Current tax liabilities - -
€ THOUSAND 6/30/2024 6/30/2023 Total payables to public administrations 43,141 24,052

Bank borrowings 39,390 38,509 TOTAL TRADE AND OTHER PAYABLES 405,558 295,890
Other financial liabilities
Suppliers of fixed assets 43,622 153,922
Sports entities for player transfers 81,559 59,550 “Marketing payables” includes the amounts owed in respect of
Other financial liabilities 51,155 32,355 the unincorporated joint venture agreement which, according to
176,336 245,827 its terms and conditions, includes provisional annual settlement
TOTAL CURRENT LOANS AND BORROWINGS 215,726 284,336
with a single maturity in June and adjustment in July once
definitive data are available.

• Bank borrowings The amount of “Sports personnel” relates primarily to remuneration

payable to players and coaches of the first football team in
As explained in Note 14.1 above, the Group has four loans, of accordance with their contracts, the terms of which stipulate
which €39,030 thousand of outstanding principal is payable that these payments are made generally in July and December.
in the short term, along with €39,390 thousand of interest and Also included are performance bonuses for sports achievements
expenses. which, under the terms of the contracts, are paid the following
season. Therefore, at June 30, 2024, the second amount
Regarding the credit facilities described in Note 14.1, of the maturing for 2023/2023 was payable which, contractually, will
total €395,000 thousand, €25,000 thousand mature in the short be made in July of the 2024/2025. Also, as stipulated, payments
term (June 30, 2023: €140,000 thousand of short-term credit of bonuses for sports achievements accrued in 2022/2023 were
facilities). At June 30, 2024 and 2023, there were no current paid in 2023/24. As at June 30, 2024, payment of bonuses for
loans and borrowings since no amounts had been drawn down. sports achievements accrued in 2023/2024 were pending.

104 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 105
 Meanwhile, the increase in the balance of “Other payables to The Group’s working capital is inherently negative, in line with
public administrations” related primarily to indirect taxes in the intrinsic workings of the Group, the large operations-driven
June, which are settled in July (see Note 16). accounts payable (purchases and services, player signings,
upfront collection of membership dues/season tickets), which
The breakdown of “Sports personnel” is as follows: are recurring; i.e. renewed annually.

€ THOUSAND 6/30/2024 6/30/2023 Current recurring payables at June 30, 2024 amounted to €520
First football team players and coaching staff 201,315 156,581
million (purchases and services: €186 million; signings/other
Other football team players and coaching staff 100 53 personnel: €220 million; and accruals of €114 million), up from
Basketball players and coaching staff 3,773 6,612 €395 million at June 30, 2023 (purchases and services: €122
million; signings/other personnel: €174 million; and accruals
Total payables to sports personnel 205,188 163,246 of €99 million). These recurring balances contribute the most
negative effect on working capital at the end of each reporting
The breakdown of foreign currency balances is as follows: period.

June 30, 2024 These balances will be rolled over, and therefore will reflect
Foreign currency similar amounts at each year-end. Accruals are amounts
Thousands amount Euro amount
collected before the end of the previous period or beginning
US dollars 64 59 of the current period, which generate an accrued liability that
Pound sterling 3,566 4,213
is canceled over the entire season and does not represent any
Moroccan dirham 694 65
payment.
Total 4,337
The remaining current loans and borrowings as at June 30,
2024 related to amounts owed for investments, which will be
June 30, 2023 paid comfortably with the cash flows generated by the Group
Foreign currency each month from operating activities, plus available cash and
Thousands amount Euro amount
undrawn facilities.
US dollars 20 19
Pound sterling 232 270
Moroccan dirham 694 65
In sum, important here is that with the stadium remodeling
completed and with growth in revenue from the reform now
Total 354 consolidated, the Group expects to deliver considerable
operating profit, with operating income outstripping
operating expenses. Therefore, the Group will generate
14.5 Working capital a considerable cash surplus after meeting the payment
obligations arising from its operations to meet its investment
Working capital is the difference between current assets and payment commitments.
current liabilities on the balance sheet.
Considering the above and taking into account the current
Working capital at June 30, 2024 was a negative €188 million cash balance, cash projections made using conservative
(June 30, 2023: €-145 million). assumptions for the coming seasons, and the undrawn
available credit lines at June 30, 2024, of €395 million,
In line with historical trends, working capital was negative of which €370 million are long-term (Note 14.1), the
again after several atypical years in which it was positive, Group should be able to meet its payment obligations
caused by the effects of funding of the Santiago Bernabéu comfortably. Therefore, there are no doubts surrounding
Stadium remodeling project and the Sixth Street agreement potential liquidity risk or the Group’s financial position due
(Note 17.1.6). to working capital.

106 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 107
 15. ACCRUALS IN ASSETS AND LIABILITIES 16. TAXATION
15.1 Accruals in assets The Group availed itself of the special tax regime provided
for in Chapter VII of Title VII of the CIT Law for tax periods
Non-current and current accruals in assets:
beginning on or after July 1, 2022. The tax consolidation group
€ THOUSAND 6/30/2024 6/30/2023
is composed of Real Madrid Club de Fútbol (the parent) and
Real Madrid Estadio S.L.U. (subsidiary) as stipulated in article
Non-current accruals 39,566 41,653 58.1 of that law. Companies in the tax group distribute the tax
Current accruals 1,323 1,429
charge so that the parent settles the tax assets and liabilities
arising with subsidiaries from taxable profits or tax losses
• Non-current accruals
contributed by them to the tax group.
These relate mainly to sports personnel contract bonuses
accruing in the long term. Tax consolidation applies only to corporate income tax. All
other taxes are settled individually by each company. Therefore,
• Current accruals the consolidated financial statements may present amounts
receivable from or payable to the taxation authorities at the
These relate to a variety of prepaid expenses accrued during
end of the reporting period.
the next calendar year.

The breakdown of tax assets is as follows:

15.2 Accruals in liabilities
Non-current and current accruals: € THOUSAND 6/30/2024 6/30/2023

€ THOUSAND 6/30/2024 6/30/2023 VAT and similar taxes refundable 310 -

Recoverable taxes 47,208 61,765
Non-current accruals
Non-current advances 1,250 24,137 Other receivables from public administrations (Note 8.2) 47,518 61,765
1,250 24,137
Withholdings and payments on account 4,792 12,076
Current accruals Current tax assets (note 8.2) 4,792 12,076
Membership fees, ticket sales and stadium revenue 70,642 67,980
International and friendly matches 13 - Deferred tax assets for deductible temporary differences 18,460 19,353
Broadcasting revenue 157 229 Tax credits 27,218 34,706
Marketing revenue 43,387 30,867 Deferred tax assets (non-current assets) 45,678 54,059
114,199 99,076

• Non-current advances
This item relates primarily to discounted amounts received The amount of tax receivable relates to the refund from the
in advance and pending accrual arising on various marketing tax authorities due, first, to the request by the Group for
agreements. reimbursement of undue revenue after adapting the accounting
treatment to the criteria of the last audit with assessments
• Deferred income signed in agreement over the tax treatment of payments
made by the Group for services rendered and invoiced to the
a) Membership fees, ticket sales and stadium revenue Group by agents in purchases and sales of player transfer
This item comprises mainly membership fees and season rights (Note 16.4.7), and second, the impacts of the decisions
tickets and income from stadium boxes received before by Supreme Court and National Court in favor of the Club in
June 30, 2024, which accrue in 2024/2025. the same connection with respect to the tax assessments,
complementary tax returns and rectification requests explained
b) Marketing revenue in Notes 16.4.1 to 16.4.5.
The balance of this item relates to the amounts received by
the Group under business agreements entered into before Also included is the amount of current tax of the previous
June 30, 2024, which accrue in 2024/2025. period; i.e., the balance of income tax refundable in the income

108 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 109
 tax statement filed in January each year for the previous VI of Title VII of Law 27/2014, of November 27, on Corporate
financial year. Income Tax.

The breakdown of tax liabilities is as follows: It notified this to the tax authorities on April 26, 2022, and
received authorization on July 8, 2022, applicable for tax
€ THOUSAND 6/30/2024 6/30/2023 periods beginning on or after July 1, 2022.
VAT payable 35,564 16,375
In accordance with article 58.1 of that law, the tax consolidation
Personal income tax payable 4,036 3,686
Corporate income tax payable (non-resident income tax) 27 38 group is composed of entities resident in Spanish territory that
Local income tax payable 2,222 2,739 meet the legal requirements and permanent establishments of
Social security payable 1,292 1,214 non-resident entities in Spain that likewise meet the requirements.
Other payables to public administrations (Note 14.4) 43,141 24,052 Real Madrid Group’s tax consolidation group is composed of
Income tax liabilities, current tax (Note 14.4) - -
Real Madrid Club de Fútbol and Real Madrid Estadio S.L.U.

Liabilities arising from taxable temporary differences 28,204 37,053 Companies in the tax group distribute the tax charge so that
Deferred tax liabilities 28,204 37,053 the parent settles the tax assets and liabilities arising with
subsidiaries from taxable profits or tax losses contributed by
them to the tax group.
The Group is current with all its tax obligations and has no
past-due amounts with the taxation authorities, or agreements In accordance with article 62.1.a of the CIT Law, the Group’s
with the taxation authorities for deferring any payments. taxable profit or tax loss is the aggregate of the individual taxable
profits and tax losses of all Group companies. Therefore, if one
Accordingly, all amounts recognized under tax liabilities at the entity generates taxable profit and another a tax loss, the two
end of the reporting period are the result of applying ordinary are offset for inclusion in the tax group’s aggregate taxable
tax regulations: profit or tax loss. The aggregated tax base is taxed at a 25%
rate, although certain reductions to the tax base or deductions
• VAT payable: balance payable for transactions in the month to the resulting tax payable may be applied.
of June, with settlement on July 30.
The reconciliation of net income and expense with taxable
• Personal income tax payable: balance payable for transactions profit (tax loss) in the provision for income tax recognized at
in the month of June, with settlement on July 20. the end of each period is as follows:

• Local income tax payable: expense accrued from January to 2023/2024

June for local taxes, mainly regarding property and business
Income and expense
taxes, with settlement in November. Profit/(loss) recognized directly
€ THOUSAND for the year in equity

• Social Security payable: balance payable for Social Security Income and expense for the year
obligations in the month of June, with settlement on July 30. Continuing operations 15,628 -
Income tax
Continuing operations 4,291 -
• Liabilities arising from taxable temporary differences: the balance Income and expense for the year before tax 19,919 -
of corporate income tax to be settled by deferred payments, in Permanent differences 13,365 -
accordance with tax deferral regulations (e.g. reinvestment of Temporary differences
profits, accelerated depreciation) (see Note 16.2). Originating in the current year 21,483 -
Originating in prior years 10,419 -
31,902
16.1 Calculation of income tax expense
Reduction of taxable profit arising from the recapitalization reserve (2,476) -
Utilization of tax losses (45,602) -
On March 29, 2022, the Board of the Club, as parent, agreed
to begin filing consolidated taxes in accordance with Chapter TAXABLE PROFIT (TAX LOSS) FOR THE YEAR 17,108 -

110 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 111
 2022/2023 2022/2023
Income and expense Income and expense
Profit/(loss) recognized directly Profit/(loss) recognized directly
€ THOUSAND for the year in equity € THOUSAND for the year in equity

Income and expense for the year Income and expense for the year before tax 8,577 -
Continuing operations 11,826 - Permanent differences (18,388) -
Income tax (9,811) -
Continuing operations (3,249) -
Income and expense for the year before tax 8,577 - Effective tax rate 25% -
Theoretical tax charge (2,453) -
Permanent differences (18,388) -
Tax credits (3,178) -
Temporary differences
Adjustments to income tax for assessments 356 -
Originating in the current year (35,533) -
Originating in prior years (51,303) - Capitalization reserve 2,027 -
(86,836) EFFECTIVE INCOME TAX EXPENSE (3,248) -
Reduction of taxable profit arising from the recapitalization reserve - -
Utilization of tax losses - -
The breakdown of income tax expense/(income) is as follows:
TAXABLE PROFIT (TAX LOSS) FOR THE YEAR (96,647) -
2023/2024
Income and expense
Profit/(loss) recognized directly
The amount of permanent differences reflects the contributions € THOUSAND for the year in equity
made to Real Madrid Foundation to carry out its initiatives.
Current tax 2,116 -
These contributions are recovered through tax credits for Utilization of tax losses 11,400 -
donations and, primarily, amortization and losses on player Tax credits and other relief (1,982) -
disposals related to intermediation expenses capitalized as Changes in deferred tax assets for deductible temporary differences 893 -
an increase in player acquisition costs, as described in Note Changes in deferred tax liabilities for taxable temporary differences (8,801) -
Grants, donations and bequests received - (48)
4.1. Double taxation deductions utilized in the year 665 -
Adjustment of prior year income tax - -
Reconciliation of income tax expense/(income) recognized and
Total income tax expense/(refund) 4,291 (48)
the result of multiplying total recognized income and expenses
by the applicable tax rate, differentiating the amount reported
in the income statement, is as follows: 2022/2023
Income and expense
Profit/(loss) recognized directly
€ THOUSAND for the year in equity
2023/2024
Current tax - -
Income and expense
Profit/(loss) recognized directly Recognized tax losses (24,161) -
€ THOUSAND for the year in equity Unused tax credits and other tax relief (3,179) -
Changes in deferred tax assets for deductible temporary differences 21,128 -
Income and expense for the year before tax 19,919 - Changes in deferred tax liabilities for taxable temporary differences 2,608 -
Permanent differences 13,365 -
Grants, donations and bequests received (48)
33,284 -
Double taxation deductions arising and utilized in the year - -
Adjustment of prior year income tax 356 -
Effective tax rate 25% -
Theoretical tax charge 8,321 - Total income tax expense/(refund) (3,248) (48)

Tax credits (3,482) -

Adjustment for provision/settlement of income tax 2022/23 2 - The calculation of income tax recoverable or payable is as follows:
Adjustment of non-tax-deductible expenses from temporary to permanent 68 -
Capitalization reserve (618) -
€ THOUSAND 6/30/2024 6/30/2023

EFFECTIVE INCOME TAX EXPENSE 4,291 - Current tax (2,116) -

Withholdings 1,254 595
Payments on account 5,653 11,481

Current tax assets/(liabilities) 4,791 12,076

112 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 113
 16.2 Deferred tax assets and liabilities • Deferred tax assets - Unused tax credits
Reconciliation of the balances items comprising deferred tax assets The Group has double taxation deductions from withholdings
and deferred tax liabilities at the beginning and end of the year: on income from abroad. There are no time limits on the recovery
of these withholdings through income tax, although they may
2023/2024 not exceed 50% of the tax expense of each year.
€ THOUSAND Changes reflected in
Meanwhile, at the end of each reporting period, the Group
Opening Profit/(loss) Closing
balance for the year Equity balance recognizes tax credits and relief to the extent that it is probable
that sufficient taxable profit will be available against which they
Deferred tax assets
Deferred tax assets for deductible temporary differences
can be utilized. There is no time limit on recognizing these credits,
Provisions and other 18,753 (714) - 18,039 although there are certain limits depending on the type of credit:
Amortization and depreciation 600 (179) - 421
Tax credits
• Credits for investment in R&D - Cannot exceed 25% of the
Tax credits and tax relief 3,697 1,982 - 5,679 tax expense adjusted for double taxation deductions.
Double taxation deductions 633 1,930 - 2,563
Tax credit for capitalization reserve (Note 16.3) - - - - • Credits for contributions to not-for-profit organizations -
Carry forward of unused tax losses 30,376 (11,400) - 18,976 Subject to two limits. They may not exceed 10% of taxable
54,059 (8,381) - 45,678 profit and they may not exceed 25% of the tax expense
- adjusted for double taxation deductions.
Deferred tax liabilities
Liabilities for taxable temporary differences Reconciliation of unused tax credits and deductions:
Deferred capital gains for reinvestment 2,400 (82) - 2,318
Deferred capital gains due to deferred payment 32,301 (8,688) - 23,613 2023/2024
Free depreciation 869 (31) - 838
Opening Arising during Closing
Grants (Note 6.4) 1,233 - (48) 1,185 € THOUSAND balance the year Transfers Decreases balance
Other 250 - - 250
37,053 (8,801) (48) 28,204 Double taxation deductions 633 2,585 10 (665) 2,563
Deductions for R&D expenditure 2,064 2,110 - (901) 3,273
Tax credits for donations 1,633 1,371 - (598) 2,406
2022/2023 Other tax credits and relief 3,697 3,481 - 1,498 5,679
€ THOUSAND Changes reflected in
Opening Profit/(loss) Closing 2022/2023
balance for the year Equity balance
Opening Arising during Closing
Deferred tax assets
€ THOUSAND balance the year Transfers Decreases balance
Deferred tax assets for deductible temporary differences Double taxation deductions - 633 - - 633
Provisions and other 39,181 (20,428) - 18,753
Amortization and depreciation 1,300 (700) - 600 Deductions for R&D expenditure - 2,064 - - 2,064
Tax credits for donations 518 1,115 - - 1,633
Tax credits
Other tax credits and relief 518 3,179 - - 3,697
Tax credits and tax relief 518 3,179 - 3,697
Double taxation deductions - 633 - 633
Tax credit for capitalization reserve (Note 16.3) - - - - • Deferred tax assets – Carry forward for unused tax losses
Carry forward of unused tax losses 6,215 24,161 - 30,376
47,214 6,845 - 54,059 The Group has €121,504 thousand of cumulative tax losses
carried forward, mostly due to changes in deductible temporary
Deferred tax liabilities
differences. The Group recognized the tax credit from those tax
Liabilities for taxable temporary differences
Deferred capital gains for reinvestment 2,483 (83) - 2,400
losses for a cumulative amount of €30,376 thousand since they
Deferred capital gains due to deferred payment 29,579 2,722 - 32,301 may be offset with taxable profits obtained in future periods.
Free depreciation 900 (31) - 869
Grants (Note 6.4) 1,281 - (48) 1,233
As at June 30, 2024, after the tax group obtain taxable profit of
Other 250 - - 250 €65,146 thousand (accounting profit of €65,186 thousand), the
34,493 2,608 (48) 37,053 Group utilized €45,602 thousand of tax losses, reducing its tax

114 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 115
 credit by €11,400 thousand (June 30, 2023: tax losses of €96,646 June 30, 2023
thousand with recognition of a tax credit of €24,161 thousand). € THOUSAND
Amount Gain included Gain Last FY for Method for
Financial Assets Deferred to be Amount in taxable pending including including
There is no time limit on the carry forward of unused tax losses, year sold gain reinvested reinvested profit inclusion gains gain
although there is an annual limit. For the Group, in light of the
recent Constitutional Court decision rendering null several 1996/1997 Player federative rights 8,084 11,239 11,239 8,084 - 2006/2007 Sevenths
1997/1998 Player federative rights 3,865 5,421 5,421 3,865 - 2007/2008 Sevenths
provisions of Royal Decree-Law 3/2026, the limit is 70% of
1998/1999 Player federative rights 14,135 17,159 17,159 14,135 - 2008/2009 Sevenths
taxable profit before the reduction of the capitalization reserve.
1999/2000 Player federative rights 20,358 25,142 25,142 20,358 - 2009/2010 Sevenths
2000/2001 Other rights 115,995 117,197 117,197 115,995 - 2010/2011 Sevenths
• Deferred tax liabilities – deferral for reinvestment
2000/2001 Player federative rights 24,523 25,243 25,243 24,523 - 2010/2011 Sevenths
2001/2002 Land 203,443 204,142 204,142 203,443 - 2011/2012 Sevenths
These liabilities result from the tax treatment applicable to capital
% of depreciation of
gains on certain transfers of players’ federative rights, as well as on 2001/2002 Land 15,714 15,768 15,768 6,112 9,602 2011/2051 reinvested assets
merchandising, internet, image and distribution rights transferred Total 406,117 421,311 421,311 396,515 9,602
and on a portion of the land at the Club’s former sporting complex, Deferred tax (25%) 2,400
whose recognition in taxable profit has been deferred.
These gains have been included in taxable profit as a general
The aforementioned tax treatment consisted of applying the tax
rule in seven equal parts from year three, except where the
credit for reinvestment of extraordinary gains provided for in
proceeds were reinvested in fixed assets, in which case the
article 21 of the CIT Law (Law 43/1995, of December 27) to the
income is included in taxable profit in the tax periods in which
gains generated from 1996/1997 to 2001/2002 on the disposal
the related assets are depreciated.
of certain assets, thereby acquiring a commitment to reinvest
the full sale proceeds at some point within the period elapsing
• Deferred tax liabilities – Deferral of capital gains due to
between the year prior to the sale and the three years following
deferred payment
it. These gains were reinvested in player federative rights, other
intangible assets and items of property, plant, and equipment, as
In FY 2009/10, and in accordance with article 19.4 of Legislative
well as financial assets.
Royal Decree 4/2004 of the Consolidated Text of the Spanish
The total amount of deferred income in accordance with article 21 Corporate Income Tax Law (TRLIS in Spanish), the Group
of the CIT Law, the recognition method and the amounts already decided to recognize, for tax purposes, the capital gains on
reinvested and pending reinvestment are set out in the following asset transfers in transactions involving deferred payment
table (€ thousand): based on the collections carried out

This gave rise to a deferred tax liability amounting to €1,995

June 30, 2024
thousand in the year ended June 30, 2024 (2022/2023: €14,478
€ THOUSAND
Amount Gain included Gain Last FY for Method for thousand) related to the deferred capital gains during the year, and
Financial Assets Deferred to be Amount in taxable pending including including the cancellation of €10,683 thousand from collection of deferred
year sold gain reinvested reinvested profit inclusion gains gain
capital gains from the previous year (2022/2023: €11,756 thousand).
1996/1997 Player federative rights 8,084 11,239 11,239 8,084 - 2006/2007 Sevenths
1997/1998 Player federative rights 3,865 5,421 5,421 3,865 - 2007/2008 Sevenths • Deferred tax liabilities - free depreciation
1998/1999 Player federative rights 14,135 17,159 17,159 14,135 - 2008/2009 Sevenths
1999/2000 Player federative rights 20,358 25,142 25,142 20,358 - 2009/2010 Sevenths
Pursuant to Royal Decree Law 13/2010, of December 3, on
2000/2001 Other rights 115,995 117,197 117,197 115,995 - 2010/2011 Sevenths
measures designed to boost competitiveness, effective for
2000/2001 Player federative rights 24,523 25,243 25,243 24,523 - 2010/2011 Sevenths
2001/2002 Land 203,443 204,142 204,142 203,443 - 2011/2012 Sevenths
financial years beginning on or after January 1, 2011, the Club
% of depreciation of availed for the first time in FY 2011/12 the free depreciation
2001/2002 Land 15,714 15,768 15,768 6,441 9,273 2011/2051 reinvested assets
of its investments in the new property, plant and equipment
Total 406,117 421,311 421,311 396,844 9,273 and investment properties covered under this law, and is not
Deferred tax (25%) 2,318 required to maintain employment, which was a condition in the

116 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 117
 previous regulation. Free depreciation generated a deferred with criteria of maximum prudence, the Club recognized the
tax amounting to €1,533 thousand in 2011/2012. entire expense and paid the amount of the assessments in the
year ended June 30, 2016.
In 2023/2024, a total of €31 thousand was canceled (2022/2023:
€31 thousand) related to the accounting depreciation of the In January 2017, the Club was notified of the commencement
assets to which free depreciation was applied. of penalty proceedings regarding the 2010- 2014 assessments,
even those the inspections did not uncover any indications that
16.3 Capitalization reserve the Club had committed an offense. The proceedings concluded
with a €6.4 million settlement agreement. The Club expressed
In accordance with Article 25 of Corporate Income Tax (CIT) Law its disagreement and filed appeals with the Central Economic
27/2014, of November 27, taxpayers that pay tax at the rate Administrative Tribunal (TEAC). Nevertheless, in keeping with
provided in sections 1 to 6 of Article 29 of the CIT will be eligible criteria of maximum prudence the Club paid the entire amount
for a reduction in taxable profit of 10% of the increase in capital of those assessments in 2016/17, although this did not affect
and reserves provided the following conditions are met: accounting profit that year since it was recognized against
provisions already set aside at the end of 2015/16.
a) The increase in capital and reserves must be maintained for
a period of five years from the end of the tax period to which The TEAC rejected all the claims, so the Club has filed the
the reduction relates, except in the event of tax losses. administrative appeals before the National Court of Administrative
Appeals against the decisions handed down for personal income
b) The amount of the reduction must be appropriated to a
tax, non-resident income tax and corporate income tax. The
reserve, which must appear on the face of the balance sheet
National Court ruled against the appeal regarding VAT.
as a separate heading and will be non-distributable for the
aforementioned time period. The Club received decisions in its favor by the Supreme Court
regarding VAT and by the National Court regarding non-resident
In no circumstance may the reduction in taxable profit exceed
income tax and corporate income tax. After the annulment
10% of taxable profit for the tax period prior to the reduction
of the assessments contested (settlement and penalties),
and the integration referred to in section 12 of article 11 of the
the Club recovered of most of the amounts unduly paid in
CIT and prior to the offset of tax losses.
compliance with the ruling before the authorization of issue of
To comply with its requirements, the Group set aside the related these financial statements.
reserve within the term provided for in company law for the
During the current year, a decision in favor by the National
approval of the consolidated financial statements (see Note 2.5).
Court regarding personal income tax withholding was received
16.4 Other information and a further €2,475 thousand was recovered in relation to VAT,
thereby enforcing the Supreme Court’s decisions.
1. Tax assessments 2010- 2014
2. Complementary tax self-assessments in 2016 of personal
In January 2016, tax assessments were signed under protest income tax withholding, non-resident income tax and VAT
relating to personal income tax, non-resident income tax, value for 2015
added tax and corporate income tax for 2010 to 2014. The
Club was notified in May 2016 of the resolutions regarding final As a result of the tax assessments, the Club decided, in keeping
settlement, for €10.8 million. The assessments arose due to with the principle of prudence and to avoid penalties, to make
discrepancies regarding the tax treatment of payments made additional self-assessments on payments to agents not included
by the Club for services rendered and invoiced to the Club in the inspection period to become compliant in accordance with
by agents. The Spanish tax authorities considered that these the administrative criteria set out in the inspection proceedings
payments were made on behalf of players where a relationship for 2010 to 2014. Specifically, it filed additional self-assessments
was deemed to exist between the agent and player. The Club in July and October 2016 for personal income tax, VAT and
expressed its disagreement and filed appeals with the Central non-resident income tax for 2015 for a total of €6.1 million. As
Economic Administrative Tribunal (TEAC). However, in keeping explained, the Club disagreed with the criterion used by the Tax

118 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 119
 Agency in the assessments, challenging in 2016 the previous Therefore, the aforementioned tax audits of income tax for the
complementary self-assessments and claiming reimbursement 7/1/2014 to 6/30/2015 period regarding the enforcement of
of the amount unduly paid. state aid were replaced by the new tax audits.

All the requests for rectification of self-assessments of personal In January 2017, the Club signed assessments under protest
income tax and non-resident income tax, and part the self- for the taxes and periods indicated. As with the previous tax
assessments of VAT, for a total of €5.7 million, were absorbed audits for the 2010-2014 period, this amount was due to
under the framework of the 2014-January 2016 inspection discrepancies in the tax treatment of payments made by the
discussed below and rejected through the settlement agreements Group for services rendered and invoiced to the Club by agents.
of the inspection. Of the remaining requests for rectification of After the end of 2016/2017, the final settlement agreements in
VAT self-assessments, €0.4 million were appealed by the Club relation to these assessments for personal income tax, VAT
before the TEAC after rejection by the Tax Agency, but they and non-resident income tax for €1.2 million were issued. They
were ruled against by that court in January 2020. The Club filed did not have any impact on accounting profit for 2016/2017 as
administrative appeals with the National Court in May 2020, they were recognized with a charge to provisions already set
which were dismissed in June 2021. The Club filed an appeal for aside at the end of 2015/2016.
an overturn with the Supreme Court before the legal deadline.
The Club filed appeals before the TEAC against the settlement
During the year, it received a decision in its favor, annulling the
agreements indicated (€1.2 million), including rejection of the
rulings contested and ordering reimbursement of the amounts
requests for reimbursement of the complementary settlements
paid plus late payment interest.
for 2016 indicated above (€5.7 million), which were dismissed
In keeping with criteria of maximum prudence, all these by that court. The Club filed an administrative appeal before the
complementary self-assessments, although contested, were National Court of Administrative Appeals. The Club received a
recognized as a cost for the Club in the related years and ruling rejecting its appeal regarding the VAT assessment and
adjusted during the previous year. requests for reimbursement , so it filed an appeal for an overturn
with the Supreme Court before the legal deadline. The previous
During the current year, it was reimbursed a further €0.5 million, year, decisions were issued in its favor by the Supreme Court
leaving an outstanding balance of €0.3 million. annulling the debts and ordering their reimbursement plus late
payment interest. In the wake of the Supreme Court’s decisions,
3. Tax assessments 2014-January 2016 the National Court of Administrative Appeal upheld the rest of
the appeals. The TEAC is enforcing the rulings and reimbursing
On July 22, 2016, the Club was notified of the commencement the amounts paid by the Club plus the related interest.
of a tax audit of corporate income tax for the tax period from
July 1, 2014 to June 30, 2016 on the enforcement procedure On April 24, 2019, the taxation authorities ruled on the procedure
for state aid in relation to the European Commission’s decision for recovering State Aid and issued a resolution on the final
of July 4, 2016 regarding alleged state aid granted to four settlement of 2014/15 income tax, resulting in a refund of
Spanish football clubs, including Real Madrid Club de Fútbol, €193 thousand to the Club. The assessments do not affect, in
for applying legislation to this type of entity that, for tax any significant way, the amount that the Club estimated as the
purposes, includes a lower tax rate (see Note 13.4.3). damage incurred for the different tax treatment relating to the
aforementioned European Commission case. The Club filed an
The tax audit began on October 25, 2016, and subsequently appeal against the decision by the Tax Agency that is pending a
expanded to include the following taxes: vote on and ruling by the National Court of Administrative Appeals.

4. Complementary tax self-assessments filed in January

Item Period 2017 for personal income tax withholding for 2016 and VAT
Income tax 7/2014 to 6/2015 for 2015/16
Value added tax 7/2014 to 6/2015
Withholding/payments on account of personal income tax 2015 and January 2016 Again, in keeping with the same principle of prudence explained
Withholdings on account of non-resident tax 2015 and January 2016 regarding the complementary tax self-assessments of 2016
and to avoid additional penalties, the Club made additional
120 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 121
 self-assessments on payments to agents not included in the 6. Tax assessments July 2015 - June 2018
inspection period to become compliant in accordance with the
administrative criteria set out in the inspection proceedings for On July 12, 2019, the Club was notified of the commencement
2011 to 2014 and 2015 to 2016. Specifically, it filed additional of inspections for a number of taxes and tax periods. On
self-assessments in January 2017 for a total of €1 million. As September 6, 2019, it was notified of a change in the extension
explained, the Club disagrees with the criterion used by the Tax of certain tax periods. Accordingly, the taxes and taxes periods
Agency in the assessments, challenging in 2017 the previous under inspection are:
complementary self-assessments and claiming reimbursement
Item Period
of the amount unduly paid. The Tax Agency rejected the
Income tax 7/2015 to 6/2018
requests and the TEAC rejected the related appeals, prompting
Value added tax 7/2015 to 6/2018
the Club to file additional administrative appeals with the Withholding/payments on account of investment income 7/2015 to 6/2018
National Court. As in previous periods, the Club received Withholding/payments on account of personal income tax 2/2016 to 6/2018
rulings rejecting its appeal regarding the VAT self-assessments Withholdings on account of non-resident tax 2/2016 to 6/2018
and filed appeals for overturn with the Supreme Court before
the legal deadlines. It received a decision in its favor, annulling The inspection concluded in December 2021 with signing of
the debts and ordering the reimbursement of the amounts paid. the assessments relating to all taxes in agreement, for which
After the Supreme Court’s rulings, the National Court upheld the Club paid €2,200 thousand.
the decision regarding personal income tax withholding.
The only area of dispute and adjustment related to payments
All these complementary self-assessments, although contested, to agents. No adjustments were made to refunds or payments
were recognized as a cost for the Club in the related years and in any other of the Club’s tax returns related to the rest of its
adjusted during the previous year based on those decisions. activities since the inspection found them to be in compliance.

5. Tax self-assessments filed subsequently for personal The Club, which always bases its actions on the principle of
income tax withholding and VAT to December 2018 tax legality, while awaiting the outcome of the ongoing legal
proceedings signed these assessments in agreement to obtain
Using the same criteria as before, for tax self-assessments equality and legal certainty, eliminating the litigation expected
not filed before the tax inspections for 2010 to 2014 and 2015 with taxation authorities regarding the tax treatment afforded
to 2016 had concluded, the Club followed the administrative to payments to agents.
criterion set out in the settlement agreements. However, given
the dispute with the administrative criterion, it requested 7. Self-assessments and request for undue revenue
rectification to the assessments and reimbursement of submitted July 2022 regarding VAT, personal income tax
amounts paid. Specifically, for the tax self-assessments and non-resident tax from July 2018 to December 2021
up to December 2018 for which the request for rectification
After signing these assessments as explained previously and
was submitted in 2019, the Club had paid, and was therefore
in line with the same criteria used for the audit underlying
claiming reimbursement of, a total amount of €33.4 million.
those assessments, the Club, in keeping with prevailing legal
Regarding the resolution of these claims, €18 million was procedure, adjusted the input VAT from July 2018 to December
included in the new tax inspection commenced in July 2019, 2021 in July 2022. A tax audit commenced for those periods
as explained below. As at the date of authorization for issue of and taxes which concluding with the signing of an uncontested
these consolidated financial statements, the National Court of assessment, with the Club accept the adjustment made.
Administrative Appeals had yet to vote on and issue a ruling on The Club also requested rectification of the personal income tax
the remaining appeals, for €15.4 million. and non-resident income tax self-assessments filed in relation to
Again, in keeping with criteria of maximum prudence, all these the same periods. The taxation authorities rejected the requests
complementary self-assessments, contested, were recognized for rectification regarding personal income tax and non-resident
as a cost for the Club in the related years and adjusted in the income tax, prompting the Club in April 2023 to file an appeal
current year. with the TEAC. As at the date of authorization for issue of these
financial statements, a ruling has yet to be issued.

122 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 123
 8. Other information “Revenue” includes the amount of subsidies from National the
Professional Football League and the Spanish Professional
During the year, after receiving the amounts from enforcement Football Association for maintenance of stadium access points
of the Supreme Court’s and National High Court’s decisions and the share of football pool revenue, amounting to €234
described above, the Club is receiving notifications of the thousand (June 30, 2023: €273 thousand).
commencement of tax audits for the same items and periods as
those affected by the positive decisions received in application • Revenue
of the jurisprudential doctrine of double effect.
The audit of non-residential income tax for 2015 (01) to 2016 (01) The breakdown of the Group’s revenue from continuing
ended with a settlement agreement, giving rise to a tax liability operations by business category and geographical market is as
payable of €973 thousand. The Group’s advisors consider that follows:
there are sufficiently strong grounds to defend the nullity of
that settlement and that, in any event, it would not affect the € THOUSAND 6/30/2024 6/30/2023

Agency’s obligation to reimburse the previous amounts. By operating segment:

La Liga revenue 77,949 44,975
Under prevailing tax regulations, tax returns may not be King’s Cup (Copa de S.M. El Rey) revenue 23 9,289
Spanish Super Cup revenue 7,593 7,443
considered final until they have either been inspected by the tax Champions League revenue 160,895 119,940
authorities or until the four-year inspection period has expired. European Super Cup revenue - 4,546
However, due to the self-assessments filed in July 2022 to FIFA Club World Cup revenue - 4,714
Revenue from friendly matches 11,648 11,123
adapt the tax returns to the criteria of the assessments based Basketball competitions revenue 10,353 8,315
on the latest last audit (Note 16.4.7), the general statutes of Other revenue 82,992 6,847
limitations were suspended, whereby as at June 30, 2023, the Total box office and competition revenue 351,453 217,192
Total revenue from membership fees and season tickets 60,165 51,493
Club has open to inspection of income tax (personal income
Tour and RM Experience 30,277 17,655
tax withholding and non-resident income tax) and VAT from Events and concerts 8,546 402
July 2018 and the corporate tax from 2018/2019 onwards. Food, beverages and catering 6,649 358
Other 665 773
After the end of the reporting period, notification was received Total stadium revenue 46,137 19,188
Total broadcasting revenue 179,257 186,813
on the commencement of inspections regarding personal
Revenue from store sales 81,939 52,542
income tax withholding on contract terminations for the periods Revenue from sponsorships and licenses 264,548 231,700
from July 2018 to December 2019 and VAT for player transfers Advertising revenue 1,047 1,052
for the periods from January 2018 to August 2023. Other revenue 59,094 44,518
Total commercialization and advertising revenue 406,628 329,812
The Group considers that there are no material contingencies
TOTAL REVENUE 1,043,640 804,498
that could arise from current or future tax inspections.

17. REVENUE AND EXPENSES Box office and competition revenue increased in 2023/2024 by
€134,261 thousand. Alongside growth in La Liga and Champions
17.1 Operating income
League revenue driven by increased seating capacity and VIP
The accompanying income statement includes the following items: areas, other revenue also increased by €76,145 thousand.
This was mostly due to the start of marketing of personal seat
€ THOUSAND 6/30/2024 6/30/2023
licenses (PSLs), which entails a package of exclusive services
Revenue 1,043,640 804,498
Self-constructed assets 9,437 -
for VIP area customers. Holders of these licenses are entitled
Other operating income 12,052 26,715 to buy season tickets each year for a certain seat during a
Grants (Note 12) 193 192 period of 30 years. They are also entitled to purchase certain
Provision surpluses (Notes 13.1 and 13.2) 7,890 11,613
additional services available in the Santiago Bernabéu Stadium.
Total operating income before disposals 1,073,212 843,018
In addition, the holder can sell the license to someone else
Gains/(losses) on disposal and other (Note 17.5) 27,792 104,057 provided certain contractual requirements are met.
TOTAL OPERATING INCOME 1,101,004 947,075

124 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 125
 € THOUSAND 6/30/2024 6/30/2023
June 30, 2023
By geographical market: Unconditional For transfer
Spain 595,360 480,972 € THOUSAND right of control Total
Other 448,280 323,526
By timing of revenue recognition:
1,043,640 804,498
Non-current contract assets - 29,362 29,362

Meanwhile, the breakdown of the Group’s revenue by the Trade receivables (Note 8.2) 31,054 52,288 83,342
timing of recognition is as follows: Other receivables from sports entities (Note 8.2) 6,800 10,294 17,094
Current contract assets 37,854 62,582 100,436
June 30, 2024 TOTAL CONTRACT ASSETS 37,854 91,944 129,798
Unconditional For transfer
€ THOUSAND right of control Total
The movement during the year in contract liabilities and the
By timing of revenue recognition:
Membership fees, ticket sales and stadium revenue 113,009 193,961 306,970 offsetting entries recognized in revenue:
International and friendly matches 138,004 12,780 150,784
Broadcasting revenue
Marketing revenue
-
104,809
179,257
301,820
179,257
406,629
2023/2024
355,822 687,818 1,043,640
Opening Billing/ Recognition Closing
€ THOUSAND balance collections in revenue Transfers balance
Non-current accruals
June 30, 2023 Non-current advances 24,137 - - (22,887) 1,250
24,137 - - (22,887) 1,250
Unconditional For transfer
€ THOUSAND right of control Total
Current accruals
By timing of revenue recognition: Membership fees, ticket sales and stadium revenue 67,980 126,545 (123,388) (495) 70,642
Membership fees, ticket sales and stadium revenue 72,200 79,643 151,843 International and friendly matches - 75,298 (75,285) - 13
International and friendly matches 121,417 14,613 136,030 Broadcasting revenue 230 159,968 (160,041) - 157
Broadcasting revenue - 186,813 186,813 Marketing revenue 30,866 169,645 (178,756) 21,632 43,387
Marketing revenue 66,450 263,362 329,812 99,076 531,456 (537,470) 21,137 114,199

260,067 544,431 804,498

2022/2023
Opening Billing/ Recognition Closing
• Contract balances € THOUSAND balance collections in revenue Transfers balance
The disclosure of balances receivable from contracts with
Non-current accruals
customers by timing of revenue recognition is as follows: Non-current advances 47,024 - - (22,887) 24,137
47,024 - - (22,887) 24,137
June 30, 2024
Current accruals
Unconditional For transfer Membership fees, ticket sales and stadium revenue 43,671 104,985 (80,677) 1 67,980
€ THOUSAND right of control Total
International and friendly matches - 35,999 (35,999) - -
By timing of revenue recognition: Broadcasting revenue 252 156,280 (162,393) 6,091 230
Marketing revenue 36,924 107,422 (150,987) 37,507 30,866
Non-current contract assets - 15,259 15,259 80,847 404,686 (430,056) 43,599 99,076

Trade receivables (Note 8.2) 48,396 128,098 176,494

Other receivables from sports entities (Note 8.2) 331 14,297 14,628
• Agreements in force
Current contract assets 48,727 142,395 191,122
1. Real Madrid Club de Fútbol and German multinational
TOTAL CONTRACT ASSETS 48,727 157,654 206,381
enterprise Adidas had maintained a strategic alliance for over 30
years through a successful sponsorship arrangement. During this

126 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 127
 time, through successive renewals, the agreement has gradually This agreement was renegotiated in FY 2019/20, resulting in an
improved in terms of guaranteed minimums and percentage of increase in income and an extension of the potential years of
royalties. The latest extension was signed in May 2019, effective in validity to up to nine years.
full as of July 1, 2020 and ending on June 30, 2028. It represented
a marked increase in the Club’s sponsorship revenue. 5. In the 2016/17 season, once the individual contracts entered
into by the clubs concluded, Royal Decree Law 5/2015, of April 30,
2. On June 27, 2020, with economic effect from July 1, 2020, governing joint exploitation of audiovisual rights of professional
the Club entered into an agreement with Legends Hospitality football competitions (first and second Spanish football divisions,
España, S.L.U. for management of the exploitation rights for the King’s Cup and the Spanish Super Cup) became fully effective.
sports material and licensed products in physical stores and on-
line sales. This agreement is designed to drive business in the The legislation establishes a joint revenue-sharing scheme
retail area and reinforce its management control mechanisms. based on category (first or second division), performance and
The contract was novated last year to extend the term until June social acceptance, measured by membership fees and average
30, 2034. box office revenue, and the share of the contribution to the
generation of income from the marketing of TV broadcasts.
In May 2023, with economic effects as of July 1, 2023, two
It also establishes a mandatory contribution system (expenditure
new contracts were entered into for operation of the Santiago
in accordance with income obtained) to sustain other football
Bernabéu stadium bars and management of merchandising
categories and associations, and to promote sports in general.
product licenses, expiring on June 30, 2035, and June 30,
2034, respectively. 6. During the 2021/2022 season, an agreement was entered into
with Delantero Inversiones y Operaciones S.L.U., a subsidiary
Legends manages the activities, acting in its own name and on of US investment firm Sixth Street, and Legends, company
behalf of the Club in accordance with the Club’s instructions specialized in stadium management and premium experiences
and guidelines. The Club recognizes the revenue, cost of sales for sports organizations and organization of major events. The
and inventories arising from the activities, which do not have a agreement includes the transfer of management of the operation
significant impact on the net profit from the agreement. of certain new businesses of the Santiago Bernabéu Stadium,
based on forecasts for new cash flow generation, with the
3. In the 2012/13 season, a sponsorship agreement was signed objective of elevating the Santiago Bernabéu Stadium as a unique
with Emirates Spain Branch for the 2013/14, 2014/15, 2015/16, venue and a worldwide benchmark for leisure and entertainment.
2016/17 and 2017/18 seasons entailing higher income than
the previous sponsor’s contract. This agreement was renewed As part of the long-term partnership, Real Madrid Club de Fútbol
during the 2016/2017 season and extended to the end of the receives approximately €360 million to be invested across any of
2021/2022 season, with an increase in guaranteed income. the Group activities. Through this alliance, Sixth Street acquires
This agreement was renewed during the 2021/22 season and the right to participate in the operation of certain new businesses
extended to the end of the 2025/26 season. of the Santiago Bernabéu Stadium for 20 years, while Legends
contributes its experience and knowledge in the operation of
This locks in revenue for the Club over the coming years from large stadiums and leisure centers, allowing for the optimization
the two main sponsors of its jerseys. of the management of the Santiago Bernabéu Stadium.

4. An agreement became effective in 2017/18 (see Note The transformation of the Santiago Bernabéu Stadium will
3.20) subject to the growth and development of sponsorship be a turning point in the history of Real Club de Fútbol. This
revenue for an initial period of four years, with possibility of alliance with Sixth Street and Legends, world leaders in their
extension by one or two year in accordance with the level respective disciplines, will be fundamental in providing unique
of achievement of certain economic terms. The agreement experiences in a stadium where multiple events can be hosted
covers all territories and sponsorship categories, except throughout the year. This agreement strengthens the Group’s
sports and commercial sponsorships of jerseys and stadiums goal of continuing to significantly increase the stadium’s
and training fields naming rights. revenues from both sporting and other types of events.

128 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 129
 7. In December 2023, the Group signed a global technology The breakdown of personnel expenses in the preceding table
sponsorship agreement with HP Inc. for the 2023/2024, between sports staff who can be registered in the LNFP (1st
2024/2025, 2025/2026 and 2026/2027 seasons, and a renewal and 2nd division A players and coaches) and those who cannot
option for the 2027/2028 season. (other football and basketball divisions) is as follows:

The deal will provide an additional source of revenue and Termination Other
makes HP the first brand to appear on Real Madrid’s uniform benefits/ employee Total
Salaries Image Retirements Group Social benefits personnel
sleeves, for both its men’s and women’s teams. € THOUSAND and wages rights and disposals bonuses security expense expenses

17.2 Raw materials and other consumables used Staff who can be registered in the LNFP 320,537 - - 35,129 341 1,174 357,181
Staff who cannot be registered in the LNFP 51,288 - 2 4,938 4,051 4,034 64,313
The detail of consumption of raw materials and other consumables
during the year is as follows:
Total sports personnel expenses 371,825 - 2 40,067 4,392 5,208 421,494
€ THOUSAND 6/30/2024 6/30/2023

Sports materials used 2022/2023

Purchases 7,636 8,113
Change in inventories (821) (1,869) Termination Other
Other consumables used benefits/ employee Total
Purchases 66,952 37,411
Salaries Image Retirements Group Social benefits personnel
€ THOUSAND and wages rights and disposals bonuses security expense expenses
Change in inventories (8,049) 345
First football team players and coaching staff 309,526 - 6,221 (2,341) 443 974 314,823
Total cost of sales 65,718 44,000
First football team staff who cannot be registered 3,618 - 3,650 316 198 - 7,782
Second football team players and coaching staff 6,809 - - 110 454 - 7,373
The breakdown of purchases by geographical market is as follows:
Lower division football team players and coaching staff 8,181 - 18 - 1,489 1,852 11,540
€ THOUSAND 6/30/2024 6/30/2023 Players and women's team coaching staff 3,395 - 18 - 806 524 4,743
Non-sports personnel 58,845 - 5 - 7,308 1,020 67,178
Spain 67,514 45,335
Total football 390,374 - 9,912 (1,915) 10,698 4,370 413,439
Intra-EU 7,074 189

Total 74,588 45,524 Basketball players and coaching staff 28,805 - 50 6,712 470 1,063 37,100
Non-sports basketball personnel 2,023 - - - 139 - 2,162
Total basketball 30,828 - 50 6,712 609 1,063 39,262
17.3 Personnel expenses
The breakdown of “Personnel expenses” is as follows: TOTAL PERSONNEL EXPENSES 421,202 - 9,962 4,797 11,307 5,433 452,701

2023/2024 The breakdown of personnel expenses in the preceding table

Termination Other employee Total
between sports staff who can be registered in the LNFP (1st
Salaries Image benefits/ Group Social benefits personnel and 2nd division A players and coaches) and those who cannot
€ THOUSAND and wages rights departures bonuses security expense expenses
(other football and basketball divisions) is as follows:
First football team players and coaching staff 320,537 - - 35,129 341 1,174 357,181
First football team staff who cannot be registered 2,613 - - 1,438 234 - 4,285 Other
Second football team players and coaching staff 5,524 - - - 478 - 6,002 Termination employee Total
Salaries Image benefits/ Group Social benefits personnel
Lower division football team players and coaching staff 10,833 - 2 100 1,881 2,239 15,055 € THOUSAND and wages rights departures bonuses security expense expenses
Players and women's team coaching staff 3,788 - - - 887 596 5,271
Non-sports personnel 70,449 - 383 600 8,311 1,302 81,045 Staff who can be registered in the LNFP 309,526 - 6,221 (2,341) 443 974 314,823
Total football 413,744 - 385 37,267 12,132 5,311 468,839 Staff who cannot be registered in the LNFP 50,808 - 3,736 7,138 3,417 3,439 68,538

Basketball players and coaching staff 28,530 - - 3,400 571 1,199 33,700
Total sports personnel expenses 360,334 - 9,957 4,797 3,860 4,413 383,361
Non-sports basketball personnel 1,988 - - 200 247 - 2,435
Total basketball 30,518 - - 3,600 818 1,199 36,135

TOTAL PERSONNEL EXPENSES 444,262 - 385 40,867 12,950 6,510 504,974

130 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 131
 The following table presents the total sports personnel • Other operating expenses
expenses based on the budget preparation guidelines of the
clubs, as well as the LNFP’s public limited sports companies The breakdown of “Other operating expenses” is as follows:
(Sociedades anónimas deportivas or “SADS”).
€ THOUSAND 6/30/2024 6/30/2023

2023/2024 External services 211,788 160,124

Taxes 4,772 4,744
Transport 13,499 19,646
Depreciation (Income)/
Personnel and Impairment expense from Player transfer and acquisition expenses 6,523 1,036
€ THOUSAND expenses amortization and losses transfers Total Other operating expenses 125,529 76,749

Staff who can be registered in the LNFP 357,181 113,568 6,832 4,375 481,956 Total other operating expenses 362,111 262,299
Staff who cannot be registered in the LNFP 64,313 3,860 8,252 2,118 78,543

Total sports personnel expenses 421,494 117,428 15,084 6,493 560,499 “Other operating expenses” includes the mandatory
contributions regulated by Royal Decree 5/2015 (see Note
17.1.6) and provisions for certain expenses not attributable to
2022/2023 other items.

Depreciation (Income)/ The breakdown of “External services” is as follows:

Personnel and Impairment expense from
€ THOUSAND expenses amortization and losses transfers Total
€ THOUSAND 6/30/2024 6/30/2023
Staff who can be registered in the LNFP 314,823 135,076 38,835 - 488,734
Leases of assets (Note 6.3) 3,337 2,725
Staff who cannot be registered in the LNFP 68,538 3,851 5,920 (726) 77,583
Other leases, royalties and other services 75,432 56,498
Repairs and maintenance 41,374 29,652
Total sports personnel expenses 383,361 138,927 44,755 (726) 566,317 Professional services 74,414 55,906
Insurance premiums 4,544 4,182
Advertising, publicity and public relations 7,739 6,729
Utilities 4,948 4,432
17.4 Other operating expenses
Total external services 211,788 160,124
• Losses on, impairment of and changes in trade provisions

The breakdown of “Losses on, impairment of and changes in “Other leases, royalties and other services” includes, inter alia,
trade provisions” is as follows: operating fees, TV production expenses, catering, hostess and
event expenses, and costs of editing and mailing publications.

€ THOUSAND 6/30/2024 6/30/2023 Fees paid for audit and other review and assurance engagements
Impairment of "trade receivables" (Note 8.2) 1,031 4,356
provided to the Group by the audit firm are as follows:
Losses on "trade receivables" 242 779
Reversal of impairment of "trade receivables" (Note 8.2) (232) (4,453)
Utilization of loss allowance for "trade receivables" (Note 8.2) (4,162) (769) € THOUSAND 6/30/2024 6/30/2023
Impairment of "Current receivables from sports entities" (Note 8.2) - 25 Audit 192 188
Reversal of impairment on "Current receivables from sports entities" (Note 8.2) (36) (28) Review and assurance work 64 53

Total losses, impairment and changes in trade provisions (3,157) (90) Total services 256 241

132 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 133
 Meanwhile, fees in 2023/2024 related to other services provided “Other finance income” includes €2,351 thousand of interest on
by companies in the audit firm’s international network amounted the outstanding reimbursement of excess amounts paid to the
to approximately €293 thousand (2022/2023: €286 thousand). Town Council in property taxes (see Note 8.2). It also includes
an amount of €1,443 thousand for late payment interest on
17.5 Impairment and gains/(losses) on disposal of non-current assets reimbursements by the Tax Agency derived from decisions by
the Supreme Court and National Court in favor of the Club (see
The breakdown of “Impairment and gains/(losses) on disposal Note 16.4).
of non-current assets and other exceptional gains/(losses)” is as
follows: 17.7 Foreign currency transactions

€ THOUSAND 6/30/2024 6/30/2023 Transactions carried out in currencies other than the euro are
Change in impairment and other gains/(losses) on sports intangible assets (Notes 4.1 and 4.2) (8,249) 2,849 as follows:
Disposals of sports intangible assets (6,835) (33,456)
Total change in impairment and losses (15,084) (30,607) 2023/2024
thousand
Gains/(losses) on disposal of sports intangible assets 27,792 104,041
Purchases of non-current assets Sales Services received
Gains/(losses) on disposal of non-sports intangible assets - 14
Gains/(losses) on disposal of property, plant and equipment - 2
Currency Notional Currency Notional Currency Notional
Gains on disposal and other (Note 17.1) 27,792 104,057 USD - USD 20,480 USD 5,575
GBP - GBP 390 GBP 4,938
TOTAL IMPAIRMENT, GAINS/(LOSSES) ON DISPOSAL OF NON-CURRENT JPY - JPY 13 JPY 2
ASSETS AND OTHER EXCEPTIONAL GAINS/(LOSSES) 12,708 73,450 CHF - CHF - CHF 3
CNY - CNY - CNY 2
SAR (Saudi riyals) - SAR (Saudi riyals) - SAR (Saudi riyals) 143
17.6 Finance income and expenses - 20,883 10,663

The breakdown of finance income and expenses is as follows: 2022/2023

€ THOUSAND 6/30/2024 6/30/2023 thousand
Purchases of non-current assets Sales Services received
Finance income from marketable securities and other financial instruments.
Interest on term and other deposits 4,594 1,179
Currency Notional Currency Notional Currency Notional
Exchange gains 139 384 USD 119 USD 21,355 USD 7,479
Unrealized exchange gains 301 74 GBP - GBP 70,657 GBP 779
Other finance income 3,878 9,643 JPY - JPY 13 JPY -
Finance income on remeasurement of financial assets (Note 8.1) 1,279 1,474 CHF - CHF - CHF 2
MXN (Mexican pesos) - MXN (Mexican pesos) - MXN (Mexican pesos) 3
10,191 12,754
QAR (Qatari riyals) - QAR (Qatari riyals) - QAR (Qatari riyals) 2
Capitalization of borrowing costs (Note 6.4) 29,727 17,917
MAD (Moroccan dirham) - MAD (Moroccan dirham) - MAD (Moroccan dirham) 69
SAR (Saudi riyals) - SAR (Saudi riyals) - SAR (Saudi riyals) 148
Finance costs
119 92,025 8,482
Bank service fees 536 626
Exchange losses 458 477
Unrealized exchange losses 20 85 17.8 Consolidated profit or loss by Group companies
Loan interest costs 34,214 21,332
Other finance costs 483 945 The contribution by company to the Group’s consolidated
Finance costs on remeasurement of financial liabilities (Notes 14.1 and 14.2) 6,143 1,618
profit or loss was as follows:
41,854 25,083

€ THOUSAND 6/30/2024 6/30/2023

“Loan interest costs” included the interest expenses on
Real Madrid Club de Fútbol 15,265 11,560
financing of the Santiago Bernabéu Stadium remodeling project Real Madrid Estadio, S.L.U. 334 266
(Note 6.1). In according with accounting standards, these costs Aparcamientos del Santiago Bernabéu, S.L. 32 -
Real Madrid Beijing Co, Ltd (3) -
are recognized in the balance sheet under “Capitalization of
borrowing costs” (see Note 6.4). Profit/(loss) for the year 15,628 11,826

134 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 135
 18. RELATED PARTY TRANSACTIONS The members of the Board of Directors at June 30, 2024 were
as follows:
Related parties with which the Group carried out transactions
in the year ended June 30, 2024, and the nature of the Chairman:
relationship, are as follows: Florentino Pérez Rodríguez

Nature of the relationship

Vice Chairman:
Board of Directors Directors
Eduardo Fernández de Blas
Senior management Directors
Real Madrid Foundation Shared directors between the Foundation and the Club Vice Chairman:
Pedro López Jiménez
18.1 Board of Directors and senior management
Secretary:
The members of the Board of Directors and those holding other Enrique Sánchez González
management positions at the Group, both those serving at the
date of authorization for issue of these annual consolidated Board members:
financial statements and former members, did not undertake Santiago Aguado García
any transactions other than in connection with the ordinary Jerónimo Farré Muncharaz
course of the Group’s business.
Enrique Pérez Rodríguez
The Group’s policy is to arrange third-party liability insurance of Manuel Cerezo Velázquez
Group directors for damages caused by acts or omission in the José Sánchez Bernal
discharge of their directorships. The amount paid in 2023/2024 Gumersindo Santamaría Gil
was €113 thousand (2022/2023: €95 thousand).
José Manuel Otero Lastres
1. Director compensation Nicolás Martín-Sanz García
José Luis Del Valle Pérez
The members of the Board of Directors did not accrue any Catalina Miñarro Brugarolas
compensation for serving as directors.
Manuel Torres Gómez
At June 30, 2024 and 2023, the Group had no obligations
with former or current members of the Board of Directors in
18.2 Real Madrid Foundation
respect of pensions or life insurance, nor had it extended any
guarantees on their behalf.
The Real Madrid Foundation’s governing body is its Board
of Trustees. According to the Foundation’s bylaws, the
2. Identification of and total compensation paid to senior
Foundation’s trustees include, among others, the members of
management
the Board of Directors of Real Madrid Club de Fútbol.
In the year ended June 30, 2024, there were 56 senior
The members of the Board of Trustees do not earn any
executives (2022/2023: 55), of whom 54 continued to hold
compensation for their seats on this board.
their directorships at June 30, 2024 (June 30, 2023: 54).
There are commitments with the Foundation regarding contributions
Total compensation paid to executives in the year ended June
to fund the sustainability of the Foundation and the pursuit of its
30, 2024 was €36,741 thousand (June 30, 2023: €33,608
activities. Contributions in the year ended June 30, 2024, amounted
thousand).
to €3,428 thousand (June 30, 2023: €3,023 thousand).

136 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 137
 19. NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL through a system of regular warnings managed by the Group’s IT
INSTRUMENTS system and supervised at the corresponding management levels.

The Group has established a series of procedures and controls The breakdown, by counterparty, of credit risk concentration of
that make it possible to identify, measure, and manage the current and non-current “Receivables from sports entities”, “Non-
risks arising from financial instrument activity. current trade receivables” and “Trade receivables” is as follows:

Financial instrument activity exposes the Group to credit,

market, and liquidity risk.
2023/2024
No. of debtors € thousand
19.1 Credit risk
With a balance of more than €1,000 thousand 34 330,940

Credit risk is the risk that a Group counterparty will not meet With a balance of between €1,000 thousand and €500 thousand 30 23,180
With a balance of between €500 thousand and €200 thousand 41 14,974
its contractual obligations, i.e., the possibility that financial
With a balance of between €200 thousand and €100 thousand 31 4,425
assets will not be recovered at their carrying amount within the
With a balance of less than €100 thousand 214 4,473
established time frame.
Impairment (15,246)
362,746
The maximum exposure to credit risk is as follows:

€ THOUSAND 6/30/2024 6/30/2023 2022/2023

Non-current financial investments
Non-current receivables from sports entities (Note 8.1) 36,875 70,990 No. of debtors € thousand
Non-current trade receivables (Note 8.1) 15,259 29,362
Other receivables (Note 8.1) 6,487 3,047 With a balance of more than €1,000 thousand 24 316,903
Other financial assets (Note 8.1) 1,280 480 With a balance of between €1,000 thousand and €500 thousand 11 8,080
With a balance of between €500 thousand and €200 thousand 13 4,591
Trade and other receivables With a balance of between €200 thousand and €100 thousand 19 2,658
Trade receivables (Note 8.2) 176,494 83,342
With a balance of less than €100 thousand 202 9,933
Current receivables from sports entities (Note 8.2) 62,995 75,651
Impairment (18,617)
Other financial assets (Note 8.2) 54,625 55,682
Receivables from public administrations (Note 8.2) 83,749 97,367 323,548

Cash and cash equivalents (Note 10) 208,265 253,357

646,029 669,278
The breakdown of these balances by age is as follows:

€ THOUSAND 6/30/2024 6/30/2023

For the purposes of credit risk management, the Group Not due 200,887 249,475
differentiates between financial assets arising from operating
Past due but not impaired
activities and those arising from investing activities.
Less than 30 days 82,368 18,688
Between 30 and 60 days 7,378 7,753
• Operating activities Between 60 and 90 days 42,516 164
Between 90 and 120 days 4,099 192
The Group has a procedure in place to measure, manage and Over 120 days 25,498 47,276
control the risks arising from each of its loans. The procedure 161,859 74,073
covers risk measurement and the initial authorization, ongoing Doubtful receivables 15,246 18,617
monitoring of the exposure and subsequent controls.
Impairment (15,246) (18,617)

Initial measurement and authorization is based on a hierarchical 362,746 323,548

credit limit authorization system. Subsequent control is automated

138 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 139
 Balances past due but not impaired include the debt with the 19.2 Market risk
Madrid City Council for the Las Tablas proceedings (see Note
13.4.2). • Interest rate risk

The Group, through its various departments, assesses and Interest rate risk is the potential loss arising from fluctuations
monitors these exposures on a monthly basis with a view in the fair value or future cash flows from assets or liabilities
to identifying risky situations and collection delays, taking and to changes in the discount rates used to determine the
the necessary precautions, including legal measures if carrying amounts of assets, especially player values.
warranted, to enable recovery of amounts past due as quickly
as possible. In addition, in order to guarantee collection of Regarding players and estimates of their value in use, the Group
receivables, the Club often demands suitable collateral and performs the analysis and considers the circumstances set out
guarantees. in Note 3.6 when assessing potential impairment losses.

• Investing activities Moreover, as explained in Note 14, at June 30, 2024, the Group
had several loans with different financial institutions, mostly
The Group’s investment policies are established by the Finance with long-term maturities. The nominal amount of outstanding
and Administration Department to make investments under the principal at June 30, 2024 was €76,713 thousand (June 30,
following guidelines: 2023: €115,010 thousand). Virtually the entire amount is at a
fixed rate of interest. The Group also has long- and short-term
• They must be arranged with financial institutions domiciled floating rate credit facilities, of which no amounts had been
in Spain and of renowned solvency and liquidity. drawn down at either June 30, 2024, or June 30, 2023.

• Acceptable investment products include bank deposits, Regarding the loans to fund the stadium remodeling project,
repos, commercial paper issued by highly solvent financial the final drawdown, for €1,170 thousand, was made. The
institutions, interest-bearing accounts and other similar interest rate on this loan is fixed (see Note 6.1).
financial products. Specifically, investment in speculative
financial products or those in which the counterparty is not Therefore, the spike in interest rates since the middle of the
clearly and explicitly identified are expressly prohibited. previous year has barely had any impact on the Group’s income
statement.
• Investments should be diversified to ensure that the risk
is not significantly concentrated in any one institution. • Inflation
However, temporarily, undrawn facilities may, depending on
market conditions, be concentrated in certain highly solvent Inflation peaked in July 2022 (at 10.8% yoy), before falling
institutions. sharply to 3.4% yoy in June 2024. In any case, given its cost
structure, the Club has seen only a moderate impact of inflation
• Investments in current financial assets must be liquid assets on its expenses. It does not consume any commodities;
with a maturity of three months or less, with a repurchase energy consumption is largely insignificant; and the portion
commitment or a secondary market that guarantees their of expenditure on external services and non-sports personnel
immediate liquidity if required. linked to short-term inflation represents less than 20% of the
Group’s total expenses. Moreover, the part of the inflation-
• The Club’s power of attorney policy dictates the parameters induced increase in expenses is offset by corresponding
for the use of joint and several signatures based on amount. increases in certain revenue items.

140 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 141
 19.3 Liquidity risk However, the key metric in determining liquidity risk is the net
balance between receivables and payables.
Liquidity risk is the risk that the Group will have a shortage
of funds or lack access to sufficient funds at an acceptable The table below summarizes the maturity profile of financial
cost to meet its payment obligations at all times. The Group’s assets:
objective is to maintain sufficient available funds. Group
policies establish the minimum liquidity levels required at all 2023/2024
times.
Less Between Between
The contractual maturity schedule of financial liabilities is as than 3 months 1 and
€ THOUSAND 3 months and 1 year 5 years > 5 years Total
follows:
Trade receivables (*) 170,044 6,451 15,259 - 191,754
2023/2024 Receivables from sports entities 44,192 18,803 36,875 - 99,870
Other financial assets (**) 7,827 46,798 6,878 889 62,392
Less Between Between Receivable from public administrations 31,749 52,000 - - 83,749
than 3 months 1 and
€ THOUSAND 3 months and 1 year 5 years > 5 years Total
253,812 124,052 59,012 889 437,765
Bank borrowings 5,351 34,039 37,644 - 77,034
Other financial liabilities (*) Includes “Non-current trade receivables” and “Current trade receivables”.
Suppliers of fixed assets 40,572 3,050 37,721 889 82,232 (**) Includes “Other non-current receivables” and “Other financial assets” (non-current and current).

Payables to sports entities for player transfers 38,581 42,978 39,465 - 121,024
Other financial liabilities 38,920 12,235 142,825 989,047 1,183,027 2022/2023
Trade and other payables 351,792 53,766 6,303 - 411,861
Less Between Between
475,216 146,068 263,958 989,936 1,875,178 than 3 months 1 and
€ THOUSAND 3 months and 1 year 5 years > 5 years Total

Trade receivables (*) 83,342 - 29,362 112,704 112.704

2022/2023 Receivables from sports entities 55,062 20,589 70,990 146,641 146.641
Other financial assets (**) 8,003 47,679 3,527 59,209 59.209
Less Between Between Receivable from public administrations - 35,602 61,765 97,367 97.367
than 3 months 1 and
€ THOUSAND 3 months and 1 year 5 years > 5 years Total
146,407 103,870 165,644 415,921 415.921
Bank borrowings 5,035 33,474 76,573 - 115,082
Other financial liabilities - - - - - (*) Includes “Non-current trade receivables” and “Current trade receivables”.
Suppliers of fixed assets 152,317 1,605 32,866 94 186,882 (**) Includes “Other non-current receivables” and “Other financial assets” (non-current and current).

Payables to sports entities for player transfers 39,550 20,000 25,994 - 85,544
Other financial liabilities 32,355 - 119,611 665,157 817,123 As explained in Note 14.5 Working capital, a significant portion
Trade and other payables 276,554 19,336 - - 295,890
of the balance of “Trade and other payables” is recurring,
i.e. renewed annually due to the intrinsic nature of Group
505,811 74,415 255,044 665,251 1,500,521
companies’ business operations.

Payment commitments to suppliers of fixed assets and sports

entities for player transfers are amply covered by cash inflows
to be received in coming years through operating income
for the year, as well as by available cash and the credit lines
discussed in Note 14.

142 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 143
 19.4 Information regarding deferred payments to suppliers in 20. OTHER INFORMATION
commercial transactions
20.1 Structure of personnel
The table below provides information on the average payment
period to suppliers in commercial transactions in accordance Group headcount by employee category:
with the Resolution of January 29, 2016 of the Spanish
Accounting and Auditing Institute (Instituto de Contabilidad
y Auditoría de Cuentas) regarding disclosures in the notes to 2023/2024
annual consolidated financial statements:
Average number of
Number of employees at June 30, 2024 employees with a disability
Average number of with a severity equal to or
6/30/2024 6/30/2023 Men Women Total employees in the year greater than 33%
Days
Senior managers 45 9 54 54 -
Average supplier payment period 41 53
Middle managers 23 11 34 36 -
Ratio of transactions paid 42 58
Players and coaching staff 458 99 557 535 1
Ratio of transactions outstanding 40 40
General staff 265 189 454 427 9
€ thousand Laborers 39 5 44 45 4
Total payments made 370,203 263,320 Permanent seasonal 17 3 20 21 -
Total payments outstanding 142,889 96,912
847 316 1,163 1,118 14
Monetary value of invoices paid within 60 days 275,251 192,923
Percentage of payments made with 60 days of total payments made 75% 73%
2022/2023
Number of invoices
Number of invoices paid within 60 days 8,528 4,992 Average number of
Number of employees at June 30, 2023 employees with a disability
Percentage of total invoices paid 65% 43% Average number of with a severity equal to or
Men Women Total employees in the year greater than 33%

Senior managers 45 9 54 50 -
Middle managers 24 12 36 36 -
Players and coaching staff 429 83 512 473 2
General staff 220 183 403 352 7
Laborers 41 4 45 41 3
Permanent seasonal 19 3 22 22 -

778 294 1,072 974 12

20.2 Environmental disclosures

Given the nature of its activities, the Group has no environmental

liabilities, expenses, assets, provisions or contingencies that
could have a significant effect on its equity, financial position
and results. Consequently, the notes to the accompanying
financial statements do not include specific environmental
disclosures.

144 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 145
 20.3 Ratios necessary to join the LFP as an affiliate • Ratio 2
€ THOUSAND Season of registration (T)
The LFP’s bylaws state that at lest one of the two following
2024/2025 2023/2024
ratios must be met by affiliates. The amounts required for the
Club’s registration for season T relate to: Current liabilities 554,386 546,134
Cash and cash equivalents (190,709) (327,925)
Payables to sports entities (*) (46,874) (56,233)
• Balance sheet figures: data at December T-1
Adjusted investment in stadium remodeling (**) 24,834 (24,746)
I. Total adjusted current liabilities T-1 341,637 137,230
• Revenue: data at June T-2
Revenue T-2 804,498 712,875
COVID adjustment T-2 - 73,950
II. Adjusted revenue T-2 804,498 786,825
• Ratio 1
Ratio 2 (I/II) 0.42 0.17
€ THOUSAND Season of registration (T) Total Ratio 2 required <1.40 <1.40
2024/2025 2023/2024 COMPLIES COMPLIES

Non-current liabilities (*) 324,804 410,545 (*) Receivables from sports entities due to transfers/assignments to current.
Current liabilities 554,386 546,134 (**) Adjusted investment in stadium remodeling is calculated as follows:
Cash and cash equivalents (190,709) (327,925)
Receivables from sports entities (**) (83,214) (126,129) € THOUSAND Season of registration (T)
Investments in stadium remodeling (***) (980,333) (731,300)
2024/2025 2023/2024
I. Total adjusted liabilities T-1 (375,066) (228,675)
Investments in stadium remodeling (*) (980,333) (731,300)
Revenue T-2 804,498 712,875 Liabilities associated with investment 1,021,723 690,057
COVID adjustment T-2 - 73,950 Adjustment coefficient 0.6 0.6
II. Adjusted revenue T-2 804,498 786,825 Adjusted investment in stadium remodeling 24,834 (24,746)

Ratio 1 (I/II) (0.47) (0.29) (*) Cumulative investment as at December 31, 2023 and December 31, 2022, respectively.
Required ratio 1 <3.15 <3.15 For cumulative investment as at December 31, 2023, in accordance with regulations and
COMPLIES COMPLIES standards issued by economic-financial control bodes, investment for the period from
July 1, 2019 to December 31, 2019 was excluded.
(*) Payables falling due after T+4 to June 30 are not included.
(**) Receivables from sports entities due to transfers/assignments to non-current and current.
(***) Investment x adjustment coefficient. Adjustment coefficient =1
Cumulative investment as at December 31, 2023 and December 31, 2022, respectively.
For cumulative investment as at December 31, 2023, in accordance with regulations and
standards issued by economic-financial control bodes, investment for the period from
July 1, 2019 to December 31, 2019 was excluded.

21. EVENTS AFTER THE REPORTING PERIOD

The most significant events that occurred between the end of
the reporting year and the date of authorization for issue of
these financial statements were as follows:

• A world-renowned player joined the men’s first football team

without the Club having to pay any transfer cost.

• Player transfers to other clubs were carried out amounting to

approximately €18,350 thousand.

146 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 147
 22. INCOME STATEMENT BY ANALYTICAL SEGMENT 23. BUDGET OUT-TURN FOR THE 2023/2024 SEASON

Men's football Women's football

€ THOUSAND Budget* Out-turn Variance
First team Youth First Youth
€ THOUSAND and other team team team Basketball Total Membership fees, ticket sales and stadium revenue 317,898 317,022 (876)
Revenue from international and friendly matches 108,673 150,784 42,111
Membership fees, ticket sales and stadium revenue 307,749 51 316 - 8,906 317,022
Broadcasting revenue 172,660 179,257 6,597
Revenue from international and friendly matches 148,020 980 799 - 985 150,784
Marketing revenue 340,313 426,149 85,836
Broadcasting revenue 175,244 40 977 - 2,996 179,257
Marketing revenue 405,463 - 8,444 - 12,242 426,149
Total operating income (before disposal of non-current assets) 939,544 1,073,212 133,668

Total operating income

(before disposal of non-current assets) 1,036,476 1,071 10,536 - 25,129 1,073,212 Cost of sales (45,263) (65,718) (20,455)
Sports and non-sports personnel expenses (458,269) (504,974) (46,705)
Cost of sales (62,990) (1,369) (445) (248) (666) (65,718) Operating expenses (339,534) (340,843) (1,309)
Sports and non-sports personnel expenses (438,515) (23,764) (4,585) (1,430) (36,680) (504,974) Provision for uncollectible receivables, and for liabilities and charges - (18,111) (18,111)
Operating expenses (318,258) (11,296) (2,079) (203) (9,007) (340,843)
Provision for liabilities and charges (18,111) - - - - (18,111) Total operating expenses before depreciation and amortization (843,066) (929,647) (86,580)

Total operating expenses before depreciation Operating profit/(loss) before depreciation and amortization, and
and amortization (837,874) (36,429) (7,109) (1,881) (46,353) (929,646) disposal of non-current assets 96,478 143,566 47,088

Operating profit/(loss) before depreciation and Gains/(losses) on disposals of non-current assets 87,003 27,792 (59,211)
amortization, and disposal of non-current assets 198,603 (35,358) 3,427 (1,881) (21,225) 143,566 Impairment/derecognition of non-current assets - (15,084) (15,084)

Gains/(losses) on disposal of non-current assets 7,914 18,931 - - 947 27,792 Operating profit/(loss) before depreciation and amortization (EBITDA) 183,481 156,274 (27,207)
Impairment/derecognition of non-current assets (14,887) (170) - - (27) (15,084)
Depreciation and amortization (144,368) (134,419) 9,949
Operating profit/(loss) before depreciation
and amortization (EBITDA) 191,630 (16,597) 3,427 (1,881) (20,305) 156,274
Operating profit/(loss) 39,113 21,855 (17,258)

Depreciation and amortization (129,310) (4,171) (402) (7) (525) (134,419)

Finance income 1,111 10,191 9,080
Capitalization of borrowing costs 12,044 29,727 17,683
Operating profit/(loss) 62,320 (20,768) 3,025 (1,888) (20,830) 21,855
Finance costs arising on implied cost of deferred payment on player acquisitions (4,736) (5,873) (1,137)
Finance costs arising on interest on loans, guarantee expenses and other
Finance income 10,191 financial expenses (25,083) (6,254) 18,829
Capitalization of borrowing costs 29,727 Capitalized finance costs on the stadium loan (12,044) (29,727) (17,683)
Finance costs arising on implied cost of deferred
payment on player acquisitions (5,873)
Net finance income/(expense) (28,708) (1,936) 26,772
Finance costs arising on interest on loans, guarantee
expenses and other financial expenses (6,254)
Profit before tax 10,406 19,919 9,513
Capitalized finance costs on the stadium loan (29,727)

Income tax expense (4,052) (4,291) (239)

Net finance income/(expense) (1,936)

Profit after tax 6,354 15,628 9,274

Profit before tax 19,919

Income tax expense (4,291) Variance

Positive: higher revenue, lower expense.
Profit after tax 15,628 Negative: lower revenue, higher expense.

148 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 149
 The main differences vis-à-vis the budget are discussed competitions and, especially, higher marketing revenue,
below: Any mention of the Club with respect to financial underpinned by sponsorship and merchandising revenue.
performance should be understood to refer to the Group Stadium revenue was virtually in line with the budget, as
comprising Real Madrid Club de Fútbol and Subsidiaries. lower revenue from new businesses caused by ongoing
remodeling work was offset by higher ordinary spectator
In the 2023/2024 season, the first division football team won revenue on the back of better-than-expected sports
the Champions League, for the sixth time between 2014 performances and higher revenue than budgeted from
and 2024, along with the La Liga and Spain’s Super Cup marketing of a new premium product linked to a small
trophies. The first division basketball team won Spain’s ACB number of the new VIP seats.
league, King’s Cup (Copa SMR) and Super Cup and was the
EuroLeague runner-up. None of these sporting achievements Cost of sales was 45% over budget due to the growth of
was budgeted—the budget had Real Madrid reaching the merchandising revenue.
quarterfinals of the Champions League—resulting in higher-
than-budgeted revenue, especially stadium and international Personnel expenses were 10% over budget mostly as a
match revenue, as well as higher-than-budgeted personnel result of bonuses for unbudgeted sports achievements in
expenses and sports personnel bonuses, and operating both football and basketball.
expenses due to the larger number of matches played and
the increased operating activities carried out. Operating expenses were in line. Higher-than-budgeted
expenses driven by the increase in competition revenue were
The remodeling project continued throughout 2023/2024, with offset by lower-than-budgeted expenses on development of
works on the various structural components (e.g., facade, stadium operations.
roof, retractable lawn) completed gradually. As at the June
30, 2024 reporting date, the works related to development Provision for potential contingencies amounting to €18.1
of businesses (e.g., VIP area, tour, RM Experience, events, million were recognized for the expenses exceeding the
catering, store), which were one of the primary reasons budget that did not warrant any allowance.
behind the remodeling project to begin with, were still under
way. All of this resulted in operating profit before depreciation and
amortization and disposal of non-current assets (EBITDA
Ongoing development of the works drove a gradual increase before disposals) of €143.6 million, €47.1 higher than
in stadium revenue over the course of 2023/2024, with the budgeted.
various business lines scheduled to be fully operational in
2024/2025. A net gain on player transfers of €27.8 million was recognized;
i.e., €59.2 million less than budgeted. The result was almost
Operating income (before disposal of non-current assets) in entirely due to transfers of youth team players and variable
2023/2024 amounted to €1,073.2 million. payments accrued during the current season on first team
player transfers carried out in previous seasons.
Although the stadium was not yet fully operational during
the year, the Club still managed to become the first football Meanwhile, costs amounting to €15.1 million that were
club ever to surpass the €1 billion mark in operating income not budgeted were assumed for player disposals and the
before disposal of non-current assets. allowance for impairment of non-current assets.

Revenue was 14% above budget. This was due above Overall, the net gain and retirements and disposals of assets
all to increased revenue from achievements in sports was €74.3 million below budget.

150 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 151
 All of this resulted in operating profit before depreciation and Against a backdrop of widespread and hefty losses by the
amortization (EBITDA) of €156.3 million, €27.2 lower than vast majority of Europe’s biggest clubs from 2019/2020 to
budgeted. 2022/2023, which continued for several of the major clubs in
2023/2024, the Club was profit-making in all five years from
The depreciation and amortization charge for the year 2019/202 to 2023/2024 during which it had to overcome the
was €9.9 million below budget since depreciation on the impact of COVID-19, not to mention limitations arising from
remodeling project had yet to start because work was still the stadium remodeling work.
ongoing at the end of the reporting period.
All this was achieved by implementing measure to rein in
Net finance expense amounted to €1.9 million, €26.8 million costs and improve the business all around.
lower than the net expenditure in the budget. These was the
result of: The Group has now been profit-making in the last 23 years,
enabling it to build up equity of €574 million as at June 30,
• €9.1 million higher-than-budgeted finance income due to 2024.
the effect of higher interest rates paid on account balances
and deposits and late payment interest received in respect
of several tax-related claims.

• €17.7 million lower-than-budgeted finance costs, due

primarily to the capitalization of borrowing costs throughout
the year for funding of the remodeling project because
work still ongoing at the end of the reporting period.

At the bottom line, profit before tax for the year was €19.9
million, €9.5 million above budget.

Income tax expense amounted to €4.3 million after applying

a nominal tax rate of 25% to accounting profit before tax
adjusted for impacts of changes in tax legislation and
recognizing the applicable tax credits.

The actual expense was in line with the budget despite

higher-than-budgeted accounting profit due to application of
higher tax credits.

In all, the budget out-turn for 2023/24 included profit before

tax of €15.6 million, €9.3 million higher than budgeted for the
reasons explained previously.

152 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 153
 Authorization for issue of the Chairman Board members
consolidated financial statements Mr. Florentino Pérez Rodríguez Mr. Santiago Aguado García (*) Mr. José Luis del Valle Pérez
and management report for the year
ended June 30, 2024 Mr. Jerónimo Farré Muncharaz Ms. Catalina Miñarro Brugarolas
Vic-Chairman Mr. Enrique Pérez Rodríguez Mr. Manuel Torres Gómez
In a meeting held on July 23, 2024, the members
Mr. Eduardo Fernández de Blas Mr. Manuel Cerezo Velázquez (*)
of the Board of Directors of Real Madrid Club
de Fútbol authorized for issue the consolidated Mr. Pedro López Jiménez Mr. José Sánchez Bernal
financial statements and management report Mr. Gumersindo Santamaría Gil (*)
for the financial year ended June 30, 2024,
Secretary Mr. José Manuel Otero Lastres (*)
which consist of the documents preceding this
certification. Mr. Enrique Sánchez González Mr. Nicolás Martín-Sanz García

(*) p.p. Chairman Florentino Pérez Rodríguez’s signature.

154 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED FINANCIAL STATEMENTS 155
 Consolidated Audit
Report on the Financial
Statements

156 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED AUDIT REPORT ON THE FINANCIAL STATEMENTS 157
 Ernst & Young, S.L. Tel: 902 365 456
Calle de Raimundo Fernández Villaverde, 65 Fax: 915 727 238
28003 Madrid ey.com

Key audit matters

INDEPENDENT AUDITOR’S REPORT Key audit matters are those matters that, in our professional judgment, represent the most significant risk of
material misstatement in our audit of the consolidated financial statements of the current period. These matters
Translation of a report and financial statements originally issued in Spanish. In the event of discrepancy,
the Spanish-language version prevails
were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of intangible fixed assets

To the General Assembly of Delegated Members of
REAL MADRID CLUB DE FÚTBOL Description In its consolidated balance sheet as of June 30, 2024, the Group recognized sports intangible
assets, net of amortization and impairment, of 449.059 thousand euros related to the
acquisition of player transfer rights and the related costs, which are amortized in a straight-
line basis. The relevant information regarding such intangible fixed assets is described in
Opinion Notes 3.1 and 4 to the consolidated financial statements.

We have audited the consolidated financial statements of REAL MADRID CLUB DE FÚTBOL (the “Entity”) and The review of the aforementioned headings is a key audit matter as it involves significant
Subsidiaries (the “Group”), which comprise the balance sheet at June 30, 2024, the income statement, the judgment on the part of the Group’s management when analyzing, according to the
statement of changes in equity, the statement of cash flows and the notes thereto, all of which consolidated, for circumstances of each asset, its proper classification as intangible fixed assets or as a non-
the year then ended. current asset held for sale and any evidence of impairment at the end of the year, as
described in Notes 2.3, 3.1, 3.5 and 3.6 to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements give a true and fair view, in all material
respects, of the consolidated equity and consolidated financial position of the Group at June 30, 2024, and the Our
results of its operations and cash flows for the year then ended, in accordance with the applicable financial response Our audit procedures, among others, were as follows:
reporting framework (identified in Note 2 of the consolidated notes) and, in particularly, the accounting
principles and policies contained therein. u We reviewed the procedures followed by the Group for the correct classification of
players' transfer rights as intangible sports assets or non-current assets held for sale.
Basis for opinion u We reviewed the capitalization criteria, depreciation and identification of possible
impairment and, where appropriate, and how they were recorded for accounting
We carried out our audit in accordance with Spanish standards on auditing. Our responsibilities under those purposes.
standards are further described in the ”Auditor’s responsibilities for the audit of the consolidated financial
u We assessed the reasonableness of the assumptions and sources of information used by
statements” section.
the Group to arrive at its conclusions.
We are independent from the Group in conformity of ethical requirements, including independence, which are u We reviewed the disclosures included in the notes to the accompanying financial
applicable to an audit of consolidated financial statements in Spain according to what is required by Spanish statements required for these items by the applicable financial reporting framework.
standards on auditing. In these regards, we have neither provided services different to audit of financial
statements nor any situation or circumstance has concurred that, according to the aforementioned standards, Recognition and measurement of revenue and accrual of current and non-current liabilities
had affected the necessary independence in a way it had been jeopardized.
Description As explained in Note 3.18 to the accompany consolidated financial statements, when
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our recognising analysing the accounting treatment given to the transactions comprising
opinion. “Revenue”, the Group utilises the five-step model typically applied to the recognition and
measurement of revenue. In addition, on a recurring basis, the Group receives significant
collections during the year related to revenues from television broadcasts, membership fees,
season tickets, marketing, as well as sponsorship contracts and friendly competitions. Where
appropriate, these collections may be considered as prepaid income when accrued in
subsequent years (in most cases in the following year), as described in Note 3.18. The
amounts corresponding to net sales and long and short-term accruals and deferrals related to
the aforementioned prepaid income are disclosed in Notes 17.1 and 15, respectively.

Domicilio Social: C/ Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3ª del Libro de Sociedades, folio 68, hoja nº 87.690-1,
inscripción 1ª. Madrid 9 de Marzo de 1.989. A member firm of Ernst & Young Global Limited. A member firm of Ernst & Young Global Limited

158 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED AUDIT REPORT ON THE FINANCIAL STATEMENTS 159
 3 4

Verifying that revenue and accruals were correctly recognised was a key matter for our audit related to going concern and using the going concern basis of accounting unless management either intends to
due to the variety of items and the complex nature of the underlying agreements, requiring a liquidate the Group or to cease operations, or has no realistic alternative but to do so.
detailed and individualized analysis of each of them. As part of our audit engagement, we
reviewed the procedures followed by the Group and analysed the main agreements in order
to determine whether the approach was applied on a consistent basis and to determine the Auditor’s responsibilities for the audit of the consolidated financial statements
appropriate accounting recognition of these accruals was a key matter for our audit given the
variety of items and terms in the underlying agreements, requiring a detailed and case-by- Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
case analysis of each. reasonableness of the calculations made. whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
Our conducted in accordance with Spanish standards on auditing will always detect a material misstatement when it
response Our audit procedures, among others, were as follows: exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
u We have reviewed the procedures followed by the Group for the correct classification of
players' transfer rights as intangible sports assets or non-current assets held for sale. As part of an audit in accordance with Spanish standards on auditing, we exercise professional judgment and
u We have reviewed the capitalization criteria, depreciation and identification of possible maintain professional scepticism throughout the audit. We also:
impairment and, where appropriate, their accounting recording.
u Identify and assess the risks of material misstatement of the consolidated financial statements, whether
u We assessed the reasonableness of the assumptions and sources of information used to due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
arrive at its conclusions. evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
u We have reviewed the disclosures included in the accompanying notes to the financial material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
statements required for these items by the applicable financial reporting framework. involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

u Obtain an understanding of internal control relevant to the audit in order to design audit procedures
Other information: Consolidated management report that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
The other information involves exclusively the consolidated management report for the year ended June 30,
2024. The consolidated management report is the responsibility of the members of Parent Entity’s Board of u Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
Directors and is not an integral part of the consolidated financial statements. estimates and related disclosures made by members of Parent Entity’s Board of Directors.

Our opinion on the consolidated financial statements does not cover the consolidated management report. In u Conclude on the appropriateness of members of Parent Entity’s Board of Directors’ use of the going
connection with the consolidated management report, our responsibility, as required by auditing standards, is to concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
evaluate and report on whether the consolidated management report is consistent with the consolidated exists related to events or conditions that may cast significant doubt on the Group’s ability to continue
financial statements based on the knowledge obtained from the Group in the course of our audit of the as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
consolidated financial statements, and not include other information obtained as evidence during the audit. It is in our auditor’s report to the related disclosures in the consolidated financial statements or, if such
also our responsibility to evaluate and report on whether the content and presentation of the consolidated disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
management report comply with applicable regulations. If, based on the work we have performed, we conclude obtained up to the date of our auditor’s report. However, future events or conditions may cause the
that there are material misstatements, we are required to report that fact. Group to cease to continue as a going concern.

Based on the work performed, in accordance with the preceding paragraph, the information contained in the u Evaluate the overall presentation, structure and content of the consolidated financial statements,
consolidated management report is consistent with the consolidated financial statements for the year ended including the disclosures, and whether the financial statements represent the underlying transactions
June 30, 2024, and its content and presentation comply with applicable regulations. and events in a manner that achieves fair presentation.

Responsibilities of members of Parent Entity’s Board of Directors for the consolidated financial statements

Members of Parent Entity’s Board of Directors are responsible for the preparation and fair presentation of the
consolidated financial statements in accordance with the applicable financial reporting framework (see Note 2),
and for such internal control as they determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, members of Parent Entity’s Board of Directors are
responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited

160 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED AUDIT REPORT ON THE FINANCIAL STATEMENTS 161
 5

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.

From the significant matters communicated to the members of Parent Entity’s Board of Directors, we determine
those of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter.

A member firm of Ernst & Young Global Limited

162 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED AUDIT REPORT ON THE FINANCIAL STATEMENTS 163
 Economic information
of Real Madrid C.F.
For the year ended June 30, 2024

164 MANAGEMENT REPORT REAL MADRID 2023-2024 CONSOLIDATED MANAGEMENT REPORT 165
 BALANCE SHEET INCOME STATEMENT FOR
AS AT JUNE 30, 2024 THE YEAR ENDED JUNE 30, 2024

ASSETS EQUITY AND LIABILITIES

€ THOUSAND Notes 06/30/24 06/30/23 € THOUSAND Notes 06/30/24 06/30/23 € THOUSAND Notes 06/30/24 06/30/23

NON-CURRENT ASSETS 2,071,119 1,730,483 EQUITY 560.580 545,460 CONTINUING OPERATIONS

Sports intangible assets 4 449,059 324,979 Capital and reserves 11 541,760 541,760
Revenue
Other non-sports intangible assets 5 29,983 26,736 Reserves 498.401 487,997
Membership fees, ticket sales and other stadium revenue 307,094 151,962
Property, plant and equipment 6 1,425,334 1,165,257 Revaluation reserve RD 7/96 8,548 8,548 International and friendly matches 150,784 136,030
Investment properties 7 11,147 11,144 Revaluation reserve law 16/2012 20,277 20,277 Broadcasting revenue 179,257 186,813
Marketing revenue 406,597 329,811
Investment in Group comanies 8,141 141 Capitalization reserve 14,534 13,378
17.1 1,043,732 804,616
Non-current financial assets 8.1 62,211 106,514 Profit for the year 15,265 11,560
Non-current accruals 15.1 39,566 41,653 Grants, donations and bequests received 12 3,555 3,700 Self-constructed assets 17.1 8,965 -
Deferred tax assets 16 45,678 54,059
Cost of sales
NON-CURRENT LIABILITIES 1,311,935 1,026,912 Raw materials and other consumables used 17.2 (65,718) (44,000)
Non-current provisions 13.1 33,239 45,833
Non-current loans and borrowings 14.1 1,243,345 920,295 Other operating income 17.1 12,050 26,715

Bank borrowings 37,644 76,573

Sports and non-sports personnel expenses 17.3 (498,047) (446,772)
Other financial liabilities 1,205,701 843,722
Non-current payables 14.2 6,303 - Other operating expenses
Losses on, impairment of and changes in trade provisions 17.4 3,157 90
Deferred tax liabilities 16 27,798 36,647
Other operating expenses 17.4 (368,942) (268,645)
Non-current accruals 15.2 1,250 24,137 (365,785) (268,555)

CURRENT ASSETS 590,172 587,878 Depreciation and amortization 4, 5, 6, 7 (134,369) (154,569)

CURRENT LIABILITIES 788,776 730,989
Non-current assets held for sale 4.2 - 11,192
Current provisions 13.2 58,301 53,022 Non-financial and other capital grants 12.17.1 193 192
Inventories 9 18,141 9,271
Current loans and borrowings 14.2 211,871 284,336
Trade and other receivables 8.2 375,778 310,494
Bank borrowings 39,390 38,509 Provision surpluses 13.1, 13.2 7,890 11,613
Current financial investments in group
companies 18.2 87 - Other financial liabilities 172,481 245,827
Impairment, gains/(losses) on disposal of non-current assets and other
Current accruals 15.1 1,323 1,429 Trade and other payables 14.3 404,405 294,555 exceptional gains/(losses)
Impairment and losses 17.5 (15,084) (30,607)
Cash and cash equivalents 10 194,843 240,492 Current accruals 15.2 114,199 99,076
Gains/(losses) on disposal and other 17.5 27,792 104,057
12,708 73,450
TOTAL ASSETS 2,661,291 2,303,361 TOTAL EQUITY AND LIABILITIES 2,661,291 2,303,361
OPERATING PROFIT 21,619 2,690

Finance income
Marketable securities and other financial instruments 17.6 10,247 12,698
Capitalization of borrowing costs 17.6 29,727 17,917
39,974 30,615

Finance expenses 17.6 (41,737) (25,082)

NET FINANCE INCOME/(EXPENSE) (1,763) 5,533

PROFIT BEFORE TAX 19,856 8,223

Income tax expense 16.1 (4,591) 3,337

PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 15,265 11,560

PROFIT FOR THE YEAR 15,265 11,560

166 MANAGEMENT REPORT REAL MADRID 2023-2024 ECONOMIC INFORMATION OF REAL MADRID C.F. 167
 BUDGET
2024-2025

168 MANAGEMENT REPORT REAL MADRID 2023-2024 BUDGET 2024/2025 169

 REAL MADRID CLUB DE FÚTBOL AND SUBSIDIARIES
2024/25 CONSOLIDATED BUDGET

miles € FY 2023/24 Budget 2024/25 Variance Revenue budgeted for 2024/25 is €1,127.9 million, an increase
of €54.7 million (or 5%) from 2023/24.
Membership fees, ticket sales and other stadium revenue 317,022 362,091 45,069
Revenue from international and friendly matches 150,784 136,217 (14,567) The main revenue drivers are stadium (+14%) and marketing
Broadcasting revenue 179,257 169,712 (9,545) (+8%) revenue:
Marketing revenue 426,149 459,900 33,751
- Stadium revenue: the budget calls for considerable growth
in the VIP area (+32%) and museum/tour/RM Experience
Total operating income (before disposal of non-current assets) 1,073,212 1,127,919 54,707
(+84%), now almost fully operational after the remodeling
project. Revenue for the VIP area keeps in line with last year
Cost of sales (65,718) (63,457) 2,261
thanks to the marketing of a new premium product linked to
Sports and non-sports personnel expenses (504,974) (482,259) 22,715 a small number of the new VIP seats.
Operating expenses (340,843) (362,205) (21,362)
Provision for uncollectible receivables, and for liabilities and charges (18,111) (4,000) 14,111 Also increase revenue from commercial events and catering,
though catering revenue is expected to grow more slowly
Total operating expenses before depreciation and amortization (929,646) (911,922) 17,724 as the various food and beverage areas will open gradually
throughout the year. Regarding concerts, only those that
have been held to date are included in light of the announced
Operating profit/(loss) before depreciation and amortization,
and disposal of non current assets 143,566 215,998 72,432 rescheduling.

- Marketing revenue: the budget indicates significant growth

Gains/(losses) on disposals of non-current assets 27,792 30,489 2,697
in sponsorship revenue (22%) due to new contracts and
Impairment/derecognition of non-current assets (15,084) 0 15,084
a more modest increase in merchandising revenue (9%)
attributed to the agreement with Adidas. Store revenue, both
Operating profit/(loss) before depreciation and amortization (EBITDA) 156,274 246,487 90,213 physical and online, is projected to increase moderately
(4%), excluding the inventory effect.
Depreciation and amortization (134,419) (168,341) (33,922)

Operating profit/(loss) 21,855 78,146 56,291

Revenue from other business lines is budgeted to decrease as
explained below:
Finance income 10,191 947 (9,244)
Capitalization of borrow ing costs 29,727 0 (29,727)
- C ompetition revenue: the decrease (-10%) is because the
Finance expenses arising on implied cost of deferred payment on player acquisitions (5,873) (4,222) 1,651 Club is expected to reach the quarter finals of the Champions
Finance expenses arising on interest on loans, guarantee expenses and other League after winning the title last year. This drop in revenue
financial expenses (6,254) (46,459) (40,205)
is greater than the revenue from taking part in the 2024/25
Capitalized finance costs on the stadium loan (29,727) 0,000 29,727
UEFA European Super Cup and FIFA Intercontinental Cup,
as well as the income from the accounting reclassification
Net finance income/(expense) (1,936) (49,734) (47,798) explained below. No income is budgeted for the new FIFA
Club World Cup tournament, since precise details are not
Profit/(loss) before tax 19,919 28,412 8,493 yet available.

Income tax expense (4,291) (8,261) (3,970)

PROFIT/(LOSS) AFTER TAX 15,628 20,151 4,523

170 MANAGEMENT REPORT REAL MADRID 2023-2024 BUDGET 2024/2025 171

 - T V revenue: the decrease (-5%) is primarily the result of associated with the loan of 1st team football sports personnel
the accounting reclassification to competition revenue of and expenses from sports competitions. However, these are
what UEFA included under market pool revenue and was not enough to offset the aforementioned increases, as the
recognized as TV revenue. This was due to the change in the cost incurred for the Champions League title last year was
UEFA’s distribution criteria in the new competition format greater than those for this year’s European Super Cup and
that began this year, whereby the former “coefficient” and Intercontinental Cup competitions.
“market pool” pillars have been replaced by a new “value”
pillar. The amount is allocated in full to competition revenue. The budget includes a provision for liabilities of €4 million to
cover potential contingencies (2023/24: €18.1 million).

All of this results in budgeted operating profit before

Overall, assuming equal performance—specifically reaching depreciation and amortization and disposal of non-current
the quarter-finals as per budget assumptions—the income assets (EBITDA before disposals) of €216 million. This is €72.4
Real Madrid is expected to receive from UEFA for the 2024/25 (or 50%) higher than last year.
Champions League under the new format and revenue sharing
is anticipated to be broadly similar (3% higher) to the amount Budgeted gains on disposals in 2024/25 amount to €30.5
received in 2023/24 under the previous format. million (2023/24: €27.8 million). This is largely the result of
transfers of youth team players already completed. Included
Regarding national competition TV revenue for Real Madrid, is the amount of the transfer of one basketball player and
following a (-1.2%) decline in the 2023/24 season, “La Liga” a smaller amount of variable payments accrued during the
has announced its 2024/25 revenue forecast, projecting a current season on first team player transfers carried out in
(3.6%) increase compared to the previous season. previous seasons.

Cost of sales is budgeted to decrease by 3%, primarily due to Last year, Real Madrid recognized costs amounting to €15.1
the inventory effect, which is expected to offset the increased million for player disposals and the allowance for impairment
expenditure resulting from the moderate growth in store of non-current assets. According to the 2024/25 budget, no
revenue. new costs will be required in this connection, resulting in a
reduction in expenditure from the year before.
Personnel expenses budgeted decrease for a 4% primarily
affected by the bonuses earned last year for sports Budgeted operating profit before depreciation and amortization
achievements. Excluding this impact, personnel expenses are (EBITDA) is €246.5 million, €90.2 (or 58%) higher than last year.
expected to increase by 4% year-on-year as a result of trends
in contracts and the composition of sports personnel, the The budgeted depreciation and amortization charge is €33.9
impact of inflation on costs of non-sports personnel, and the million (or 25%) higher than the year-earlier figure. The increase
larger number of staff dedicated to producing revenue from in depreciation of property, plant and equipment is due to the
and operating the stadium. start of depreciation this year of the investment in the stadium
remodeling, since the project is no longer considered work
Operating expenses are budgeted to increase by 6% year-on- in progress for accounting purposes. Player amortization is
year. This is primarily the result of higher direct costs related budgeted to decrease slightly from last year as the increased
to revenue growth and the increase in expenses for operating expenditure for new hires is offset by the decreased expenditure
the new stadium. There are also budgeted decreases in costs due to disposals and renewals.

172 MANAGEMENT REPORT REAL MADRID 2023-2024 BUDGET 2024/2025 173

 REAL MADRID CLUB DE FÚTBOL AND SUBSIDIARIES
CONSOLIDATED BUDGET BY SPORTS SEGMENTS FOR THE
2024/25 SEASON
Net finance expense is budgeted at €49.7 million, compared to MEN’S FOOTBALL WOMEN’S FOOTBALL
€1.9 in 2023/24, a net increase in expenditure of €47.8 million. 1ST TEAM AND YOUTH YOUTH
This increase is underpinned by the following: € THOUSAND REST OF CLUB TEAM 1ST TEAM TEAM BASKETBALL total

Membership fees, ticket sales and other stadium revenue 353,997 99 890 0 7,105 362,091
- 
A n increase in budgeted interest expenses on loans,
guarantees and other finance costs of €40.2 million due Revenue from international and friendly matches 134,005 687 821 0 704 136,217
mostly to stadium financing as the finance costs on the loan Broadcasting revenue 166,300 40 400 0 2,972 169,712
for the remodeling project will cease to be capitalized since Marketing revenue 438,875 0 8.409 0 12,616 459,900
the remodeling will no longer be considered work in progress
for accounting purposes. Total operating income (before disposal of non-current assets) 1,093,176 826 10,519 0 23,397 1,127,919

- A decrease in the implied cost of deferred payment on player Cost of sales (60,294) (1,715) (550) (248) (650) (63,457)
acquisitions of €1.6 million driven by the reduction in last
Sports and non-sports personnel expenses (413,830) (25,759) (6,062) (1,917) (34,692) (482,259)
year’s deferred payment balance and the absence of new
Operating expenses (339,306) (11,170) (2,339) (241) (9,149) (362,205)
deferred balances this year.
Provision for uncollectible receivables, and for liabilities and charges (4,000) 0 0 0 0 (4,000)

- A decrease of €9.2 million in finance income due to interest

Total operating expenses before depreciation and amortization (817,430) (38,644) (8,951) (2,406) (44,491) (911,921)
income in 2023/24 on account balances and deposits and
late payment interest received in respect of several tax-
related claims. No income in this connection is budgeted. Operating profit/(loss) before depreciation and amortization,
and disposal of non current assets 275,747 (37,818) 1,568 (2,406) (21,094) 215,998

Gains/(losses) on disposals of non-current assets 1,750 25,826 38 0 2,875 30,489

Overall, is budgeted a profit before tax of €28.4 million, an Impairment/derecognition of non-current assets 0 0 0 0 0 0
increase of €8.5 million (or 43%) from the year before.
Operating profit/(loss) before depreciation and amortization
Income tax expense is budgeted at €8.3 million (2023/24: €4.3 (EBITDA) 277,497 (11,992) 1,606 (2,406) (18,219) 246,487

million) after applying a nominal tax rate of 25% to accounting

profit before tax adjusted for impacts in tax legislation, a Depreciation and amortization (163,266) (4,037) (378) (7) (652) (168,341)
nominal tax rate of 25% and recognition of applicable tax
credits. The €4 million increase in the budgeted tax expense Operating profit/(loss) 114,230 (16,029) 1,228 (2,412) (18,871) 78,146
from last year is attributed almost equally to the increase in
profit before tax and the effect of estimating the recognition of Finance income 947
lower deductions than the year before. Finance expenses arising on implied cost of deferred payment
on player acquisitions (4,222)
This leaves budgeted profit after tax of €20.2 million, up €4.5 Finance expenses arising on interest on loans, guarantee
million (or 29%) from last year for the factors explained. expenses and other financial expenses (46,459)

Net finance income/(expense) (49,734)

Profit/(loss) before tax 28,412

Income tax expense (8,261)

PROFIT/(LOSS) AFTER TAX 20,151

174 MANAGEMENT REPORT REAL MADRID 2023-2024 BUDGET 2024/2025 175

Printed in October 2024, in Madrid
Published by: Real Madrid C.F.