Real Madrid partners approve "austere" accounts


Florentino Pérez, in a file image.

Florentino Pérez, in a file image.
Reuters

The partners of Real Madrid almost unanimously supported the club accounts for the 2019-2020 financial year, the budget for the 2020-2021 season and maintaining the social quotas for the 2021-2022 campaign, during the celebration this Sunday of the Ordinary and Extraordinary General Assembly of Representative Members of the entity.

President Florentino Pérez and its Board of Directors saw their confidence in the accounts of the current LaLiga Santander champion strengthened, at a delicate moment due to the coronavirus pandemic, which have caused a 13 percent (€ 106 million) reduction in last season's revenue. Last season's accounts were approved by 1,830 votes in favor, 3 against and 3 abstentions.

"They are numbers that are not as brilliant as other years, but they give the same merit in management and help to maintain us in a leadership position in world football," said Pedro López Jiménez, third vice president and treasurer of Real Madrid.

López detailed the accounts for the 2019-2020 financial year, putting 154 million the impact of the coronavirus on the treasury, which caused "cost saving measures", with about 36 million in the salary reduction agreed with the football and basketball squads and the executive part, and a "new financing through loans guaranteed by the ICO for an amount of 155 million ", which allowed an" improvement in the treasury of 169 million ".

Further, operating income went from 757 to 175, decreasing "for the first time slightly in the last 20 years" also product of the pandemic. "If they weren't in the line of 822 million," he warned. EBITDA is around 177 million (176.9), "slightly higher than the previous one (176.3)". "And that shows the operational efficiency of the club and its responsiveness," he admitted, also stressing "pride" in paying more than 286 million to the State in tax obligations and with Social Security, "a particularly noteworthy figure."

Regarding investments, he stressed that it has been "strong" in terms of the acquisition of players "between the last two years", and that the net worth of 533 million maintains "the continued growth in these 20 years and it is the shield "that helps them to confront" with serenity the impact of the pandemic. "

The net debt, also without taking into account the stage, is 241 million, although López believes that "it would have been 87 without the pandemic" and the EBITDA-debt ratio is an "acceptable 1.4", with "70 per cent "because of the coronavirus.

"Austerity"

In the assembly, Florentino Pérez reviewed the financial situation of the white club and highlighted that its strength in recent years will allow it to face difficult changes that will be marked by austerity.

During the "report of the president" of the Ordinary and Extraordinary Assembly of Members of the white club, Pérez reported that the unity of Real Madrid throughout the crisis generated by the coronavirus has allowed "institutional stability" to an institution that has had to lower salaries to players and executives.

"It is time for austerity and for solidarity. And from the Real Madrid Foundation we have turned our heads. We have collaborated with all the institutions and made a donation of more than 3 million to alleviate the pandemic. Our stadium became a logistics center for healthcare supplies despite the transformation, "he said.

"New formulas"

In addition, the president of Real Madrid has assured that the reform of football "cannot wait", stating that they are needed "new formulas"to make it" more competitive and exciting ", and has stressed that the white club must be" at the forefront of these changes ", all at a time when the idea of ​​creating a European Super League has reawakened.

"We are all aware of the complexity of this moment of adversity, the impact of the pandemic forces us to make a deep reflection because nothing will ever be the same again. Football needs new formulas that make it more competitive and exciting, and Real Madrid must be at the forefront of these changes ", he declared at the beginning of the General Ordinary and Extraordinary Assemblies of the club's Members.

In addition, the maximum representative of the Madrid entity considers that sport in Europe needs "a new impulse". "The European football model needs a new impulse and new changes are being demanded for this sport, which is the most exciting and the most global. Football has to face this new time and Real Madrid will be there, always looking, as Infantino says, what should be a priority, which are the interests of the fans, "he said.

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