Real Madrid have announced their economic projections for last season as well as their budget for this one, which has seen a decrease in income of €300m due to the Coronavirus pandemic.
€617m has been budgeted for the 2020/21 season, “€300m less than if there had been revenue growth in line with previous years prior to the pandemic,” according to Madrid in comments carried by Marca.
The club will inform their members at an assembly scheduled to be held on December 20th.
Specifically, the pandemic has caused a reduction on revenue of €106m, or 13% of the total forecast.
For this reason, players on the football and basketball squads as well as club executives have had a salary reduction of 10%, a figure that would have been 20% had La Liga been unable to complete the season.
Other savings measures have saved an additional 8%.
Madrid obtained long-term bank financing in April and May to help deal with the effects of the Coronavirus pandemic, securing €155m in five-year loans and €50m in a three-year credit policy.
Regarding the ongoing work on the new Santiago Bernabeu, the investment to date has amounted to €113.7m and the first provision of the loan of €100m has been made.
Regarding last season, 2019/20, Madrid reported that it closed with a profit of €313,000 despite the significant loss of income derived from the Coronavirus pandemic.
Featured image courtesy of Bleacher Report.