Real Madrid Rocked by Financial Woes

While the sporting situation at Real Madrid has been relatively calm in recent weeks – or at least calmer than usual – it doesn't reflect the club's institutional and economic state. According to revelations from "El Confidencial," the club, led by Florentino Pérez, has accumulated a staggering debt of 1.78 billion euros. "With the issues arising from the Santiago Bernabéu stadium renovation, the situation is concerning," the publication claims. As evidenced by the reports Real Madrid has provided to its members, six key indicators point to the club's delicate economic position in the medium and long term.

The first and most striking indicator is the collapse in liquidity. As of December 31, 2025, Real Madrid possessed a mere 3.4 million euros in cash and cash equivalents. This figure is significantly lower than the 175.8 million euros recorded just six months prior, at the end of the previous fiscal year.

Secondly, there's been a sharp decline in net profit. The reported profit stands at 5.2 million euros, representing an almost 80% drop compared to previous periods, such as the 29.4 million recorded for the same period last year. The primary reason for this downturn is the increase in salary expenses and related team costs, which have surged by 26.2% to 318.9 million euros.

Furthermore, revenues have also taken a hit. In the first half of the 2025-26 season, Real Madrid registered revenues of 571.3 million euros, which is 18.5 million less than the same period in 2024. Total operating revenues reached 613 million, down from 636 million in the previous period. Commercial revenues saw an 11.7% decrease; club shop sales dropped by 22.4%; stadium and museum tours fell by 2%; and event revenues experienced a drastic 28.3% decline.

The fourth indicator reflecting Real Madrid's poor financial performance is a 10% increase in financial expenses. The club has begun utilizing previously untapped credit lines totaling 475 million euros, most of which are due this year, to meet its current cash flow needs.

Following this is a negative working capital of 406 million euros by the end of 2025, a significant worsening from 186 million in December 2024. This deterioration in working capital means that short-term liabilities substantially outweigh the available resources to settle them.

Finally, according to "El Confidencial," when including the debt for financing the Bernabéu stadium reconstruction, the club's total liabilities amount to approximately 1.78 billion euros. Of this, 467 million are current liabilities, and 1.312 billion are non-current liabilities. As of January 1, 2026, Real Madrid has accumulated 117.5 million euros in short-term bank debt and 99.9 million in long-term debt.