Real Madrid €400 Million In Debt ??

Hello.

As the title says; Are Madrid in Debt? I'm not a Real Madrid fan, so i don't know to much about it, i fact I've never heard that they we're in debt.

I would be nice to know, so it would be implemented in the FM09 Release.

Of course, I mean how else would they be able to cough up half a billion dollars for Ronaldo???

Originally posted by Bloodbore8:

Of course, I mean how else would they be able to cough up half a billion dollars for Ronaldo???

It's not really a question if they are in debt after they've bought Ronaldo, It's more a question if they are in debt now.

Deloitte base their figures on three revenue streams: matchday income, commercial income and broadcasting. Real Madrid totalled £236 million for financial year 2006/07 (up 20% from £197m in the year previous) which was split 39% commercial (£91.8m), 38% broadcasting (£89.1m) and 23% matchday (£55.3m). Real’s figure included part of their £740 million deal TV contract with Mediapro spread over 7 years.

Hope That Helped in some way.

Am I correct in thinking that the club has heavy financial links to the Spanish government?

I seem to remember the king funding their new training facilities or something like that a few years ago... I know they used to have links with the government during the dictatorship, they were known as 'Franco's Team' I believe.

All football clubs are in debt, except for the exceptions like Chelsea who have mega rich owners.

Originally posted by tomtuck01:

All football clubs are in debt, except for the exceptions like Chelsea who have mega rich owners.

Chelsea are in debt to Abramaovich to the tune of £600m, as his money has been entered as an interest free LOAN to the club

although you wouldn't think it the majority of big clubs are in debt, Man Utd, Real Madrid, barcelona and of course as scotty walds said, chelsea.

Chelsea's is closer to £1bn United's £500m.

Chelsea are in a better situation though, the debt they incurred is owed to Abramovich not the bank where as United's is owed to the bank and therefore are suffering heavily from the credit crunch and global recession.

actually Utd are at the £1bn mark

i believe almost every club in the world is in debt if you are talking professional clubs. many big clubs have financial backers though. the bigger the club the more debt they are allowed to have imagine you are the liverpool financial director he can goto his bank manager and show him gate reciepts and seasons ticket sales, sponsorship and tv money etc so the bank manager then says fine you can have a overdraft of £75 million or whatever.

The Spanish government wiped out about £200m of debt from Real Madrid a few years ago by spending that sum of money on their training ground. That should never ever have been allowed to happen.

Originally posted by Sir_Liam:

The Spanish government wiped out about £200m of debt from Real Madrid a few years ago by spending that sum of money on their training ground. That should never ever have been allowed to happen.

i heard about that i believe real madrids reserve team has a really good stadium eg 40000 capacity or something ridiculous like that.

I don't think Spurs are in debt. They operate as a separate company to that of ENIC who is its parent company. ENIC who is owned by British Billionaire Joe Lewis lost loads of money in the Bear Sterns sale, but that cannot be passed onto Spurs as they operate as a separate entity.

I think it is one of the only big clubs not to be in debt.

Newcastle aren't in debt either as Mike Ashley paid all the clubs debts off as soon as he took over. Back to the OP, it's known that Madrid have a huge debt.

arsenal are in debt for the new stadium but they make a profit every month so it wont really matter.

Originally posted by Illdisposed:

Hello.

As the title says; Are Madrid in Debt? I'm not a Real Madrid fan, so i don't know to much about it, i fact I've never heard that they we're in debt.

I would be nice to know, so it would be implemented in the FM09 Release.

confused me a bit there

Like its been said...most football clubs are in debt. Real Madrid have been majorly in debt many times, it's known that they took a while to pay for Zidane's transfer, so think about all the galactico's transfers also. It's been well documented that the Spanish Government have helped them, even bailed them out at time, particularly during the Franco era, Real Madrid were his darlings, and im sure the king has something to do with it also.

Maybe this will answer some questions:

http://community.sigames.com/eve/forums/a/tpc/f/5211026...691%2Fm%2F8562041904

But to confuse things a bit I would like to add that Real Madrid of courde still are one of the richest clubs around...

(And no, english is'nt my first language)

Same way most countries are in debt, and even quite a few companies. Debt doesn't really matter if you're making enough profit to pay off a loan, run the company and put a little bit into the owners pockets.

And Real Madrid have ties to the Spanish Royal family I think? Real being Royal in Spanish? I've heard thats how they get a lot of money.

Reason for me making this thread was because i wanted to know if the debt of Madrid, Barcacelona and other teams should be implemented as a interest pay-back loan? I would assume they are paying back the money at this present time?