But Bernabeu Refurb Will Hit Club’s Finances
Real Madrid have €372million (£332million; $435.7million) in cash which in theory could be used to spend on new players. However, the club’s finances are slightly more precarious than they may care to admit to.
Real had €192million in the bank when their financial year ended on 30 June. They also had credit lines giving them an additional €180million. The club were interested in signing the Paris Saint-Germain duo of Neymar and Kylian Mbappe this summer – an operation that would have eaten up the whole of the cash available had they moved to sign both players.
But Real were dealing with PSG, a club that has garnered a reputation for not parting easily with their players. The French side’s chairman Nasser al-Khelaifi told Neymar to forget about a move to the Bernabeu and the Brazilian remains a PSG player.
However, Real’s finances are hemmed in by a lack of additional income. They also have the expensive involved in renovating the Santiago Bernabeu Stadium, a project that could cost as much as €575million (£513million; $673.5million).
Real had income of $751million in the 2016-17 season – the full results for 2017-18 aren’t available yet. But there was very little profit out of that. Wages for the first-team squad were €280million in 2016-17 with over €400million for the club’s 811 employees in all aspects of the organisation. That figure could rise with significant bonus payments if the club is successful on the pitch. However, the departure of Cristiano Ronaldo is June has knocked around €25-30million a year off that figure. There is little scope to significantly increase the income figure.
The prospects of Real Madrid signing both Neymar and Mbappe next summer are receding. The smart money has always been on a move for the Brazilian in 2019. Reports claim Real have already had talks with Neymar’s father although any decision over a transfer will be entirely down to PSG.
If Uefa’s Financial Fair Play investigation into PSG goes against the French club Neymar could be sold before 30 June next year. A move for Mbappe could be more difficult as PSG regard him as a more important future prospect.