Rappy Veteran Posted September 20, 2009 Veteran Share Posted September 20, 2009 Real Madrid have announced a net debt of ?296m, alongside a record annual budget of ?381m for the new season. The club's annual figures include ?226m spent on four players: Xabi Alonso, Kaka, Ronaldo and Karim Benzema. Real's debt last year was around ?100m. Their budget is some ?20m greater than that of arch-rivals Barcelona, whose ?361m budget is also a club record. The announcement comes after Uefa approved plans to force clubs to spend only what they can earn in revenue. Uefa chief Michel Platini has long urged measures to ensure clubs live within their means and those plans, to be introduced from the start of the 2012/13 season, have the approval of the European Club Association, which represents Europe's clubs. Uefa believes the inflated transfer fees and wages which make up football's current "volatile" economic model cannot be sustained. Debts in the hundreds of millions of pounds, such as the figure announced by Real, are considered a prime example of the problem. With that in mind, Real president Florentino Perez told the club's general assembly that its debts would be cut by just over ?180m by June 2010, thanks to a 14% increase in revenue on last season. "We're going through a delicate moment with the world financial crisis but we had to make a big effort for the new arrivals of players, which explains the debt," Perez said. At last year's general assembly, the club had outlined similar plans for a ?70m reduction in debt. Perez revealed the club's wage bill represented 45% of its expenditure, and announced modernisation projects for the Santiago Bernabeu stadium as well as a theme park in Madrid. All items voted on at the assembly were passed, including the ratification of credit arrangements with two banks, Caja Madrid and Banco de Santander. On a separate note, Perez admitted to those present that he "had not made the right decision" when quitting the presidency in 2006, only to regain control earlier this year. Real's opponents on the same day as the assembly were Xerez, a club lying bottom of the table with an annual budget of just ?8m - less than the salaries of Ronaldo or Kaka. [BBC] Link to comment Share on other sites More sharing options...
profets Posted September 21, 2009 Share Posted September 21, 2009 thats incredible.. i really don't understand how they can sustain such a large debt Link to comment Share on other sites More sharing options...
Kralik Posted September 26, 2009 Share Posted September 26, 2009 Could be in even deeper **** if they don't win the UCL and La Liga.. Link to comment Share on other sites More sharing options...
Martyn Posted September 26, 2009 Share Posted September 26, 2009 The Spanish establishment will bail them out again. Real will sell their training ground to them for ?500 million and then buy it back a year later for 50p. Link to comment Share on other sites More sharing options...
+John. Subscriber¹ Posted September 26, 2009 Subscriber¹ Share Posted September 26, 2009 Starting to think the Real accountant is about to file an insurance claim for something absurd, and then fade from the public eye... Seriously, this is stupid. With the current financial world climate, you still get instances like this where people frivolously spend money they don't have. Link to comment Share on other sites More sharing options...
Recommended Posts