Supporters around the world will get an intriguing insight into the monetary muscle of both Barcelona and Real Madrid in the coming days, with both clubs set to reveal key financial details.
Taking the Spanish and European champions first, the Barcelona board has put the rubber stamp on the club’s budget, which will look to yield a net profit of €20.2 million (£14.83 million), according to Marca. It’s also noted in the piece that the revenue forecast points toward a record €633 million (£464.66 million).
The piece outlines how the Blaugrana will attempt to secure those sorts of numbers:
To achieve these figures, Josep Maria Bartomeu has set out a new executive structure for the club. The president intends to synergise all business areas to optimise efforts and strategies.
The most significant change is the creation of a business unit to boost sales in Asia (Hong Kong) and America (New York). Francesco Calvo, who used to be the revenue manager at Juventus, has been recruited as the new chief commercial officer.
Real Madrid will also reveal some financial details, with the club’s Ordinary General Meeting to be staged on Saturday. According to Marca, while the lack of a Champions League bonus means the amount of money in the coffers is reduced by €65 million (£47.71 million), the club have €109 million (£80 million) to call upon if need be.
Marca also note that Los Blancos recouped €660 million (£484.48 million) in revenue at the close of the 2014-15 term, which primarily consists of money from marketing—this makes up the most substantial chunk of earnings—television rights, membership fees, friendly matches, gate receipts and international partnerships.
The amount spent on the playing staff is also outlined in the piece:
In total, expenses on first-team personnel were 218m euros, compared to a forecast of 209m for this season.
Separate from the sums paid to the players for their efforts, Real Madrid have funnelled 240m euros into various investments: 21m on stadium improvements, 29m on share repurchases and 189m on signings.
Some of the sums are huge, but given Mike Ozanian of Forbes ranks Real and Barcelona as the first and second most valuable football teams in the world, respectively, it’s little surprise they are raking in so much.
The sums still point to Real as the most lucrative side. The €660 million of revenue recouped, likely to have been boosted further by the club’s Champions League success in 2014, is a testament to their gravitas and ability to appeal a variety of markets all around the world. Indeed, in pre-season, Los Blancos played matches in China, Australia, Germany and Norway.
As we can see here courtesy of the Daily Mail (h/t sportingintelligence) Madrid's monetary clout is reflected in the quality and cost of their current squad:
Gradually, Barcelona seem to be bridging the gap, though. Indeed, as noted in Ozanian's piece, while Real, valued at $3.25 billion (£2.11 billion), currently top the Forbes standings for the most valuable football team, Barcelona, worth a reported $3.16 billion (£2.05 billion), have closed the gap significantly over the last two years; in the 2013 list, there was circa $700 million between the two valuations.
After winning last season’s treble, Barcelona’s earnings look as if they’re only going to go one way and if they can meet the aforementioned target of €633 million in earnings, that’ll surely put them closer to being the most lucrative sports institution in the world.
It may not be a mantle that is too important to the average supporter, but when it comes to these two clubs, every minor factor is fiercely contested. Expect comparisons to begin when this information is released in earnest in the days to come.
via http://bleacherreport.com/articles/2567538-barcelona-and-real-madrid-set-to-reveal-key-financial-updates
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