The board of directors of Real Madrid has convened this Wednesday the Ordinary general meeting of the entity for December 20, 2020, in which the results corresponding to the 2019/20 season will be submitted for approval, among other matters, as well as the budget for the next season, which will be reduced by almost 300 million euros because of the pandemic.
The club chaired by Florentino Pérez has explained through a statement published this Thursday the differences of the next course in relation to this as a result of COVID-19. “The 2019/20 financial year has been marked in its last three and a half months by the effects of the health pandemic, effects that will persist, foreseeably, throughout the 2020/21 financial year,” the entity advises.
«The loss of income due to COVID-19 in the 2020/21 financial year affects the different lines of business, mainly in the stadium, where income from attending matches has not been budgeted, and in commercial activities, where it is reduced to the Income from the Tour and shops is minimal expression, although there are still uncertainties about the degree of final impact that income will suffer depending on the evolution of the health situation until the end of the year.
By quantifying this situation, the COVID-19 It has meant a reduction in income of -13% (-106 million euros), «which once discounted the costs directly associated with said income (16 million euros), represents a loss of -91 million euros in the financial year economic 2019/20 ».
“If the pandemic had not existed and the income growth trend of previous years had been followed, the budget for the 2020/21 season would have reached a figure close to 900 million euros, that is, a difference close to 300 million of euros compared to what was budgeted as a consequence of the pandemic “, specifies the Real Madrid board of directors.
In this way, for the 2020/21 season, revenues of 616.8 million euros are budgeted, which represents a decrease of -14% compared to the 2019/20 fiscal year, «which was already affected by the pandemic in the income of its last four-month period, and -25% compared to the 2019/20 budget prior to the pandemic, which was 822.1 million euros, ”says the capital club.
“Despite the savings measures that are being implemented, the after-tax result will be significantly affected by this significant loss of income, although the club will try to materialize opportunities for improvement to try to balance the result as was achieved in the previous year ”, he adds in his public note.
Works of the Santiago Bernabéu
Regarding the remodeling project of the Santiago Bernabéu stadium, the Real Madrid explained that the works in the 2019/20 financial year have been carried out “as planned, compensating for the stoppage of the activity decreed by the Government in the period from March 30 to April 13 with the greatest ease for carrying out the works that have been supposedly the non-holding of matches at the Santiago Bernabéu stadium from March 14th ».
To date, the accumulated investment of the 13-time champion of Europe amounts to 113.7 million euros and he claims to have made the first drawdown of the loan for an amount of 100 million euros.
Likewise, in this fiscal year the «merger by absorption took place, with effect from July 1, 2020 and therefore already within the fiscal year 2020/21, of Heel Sports Club, women’s football, by Real Madrid CF, a merger that had been approved by the Extraordinary General Assembly held on September 16, 2019 ».
On other issues, the Real Madrid He recalled that his players and coaches from the first football and basketball squads, together with the main executives of the different directions of the club, They agreed to “voluntarily lower their remuneration for this year by 10%”, in addition to having made 3.3 million euros in donations for the purchase of medical supplies to combat the pandemic, to the Community of Madrid, the Madrid City Council and the Center for Health Supplies.
Finally, the club chaired by Florentino Pérez also published Real Madrid’s contribution to Tax and Social Security income in the 2019/20 financial year, which amounted to 286.4 million euros, in addition to having a net worth of 533 million euros, a treasury of 125 million euros ( excluding the treasury of the stadium remodeling project) and different long-term credit policies.