David Beckham's departure from Real Madrid has reportedly helped plunge the world's richest club into financial difficulties.
Real, despite being announced as the worlds richest club in February of this year, have now reportedly been forced to ask one of Spain's biggest banks for an emergency loan of £23 million. The loan will cover running costs, according to El Mundo, the Spanish newspaper.
Despite average attendances of 70,000 at the Santiago Bernabéu Stadium, Real took only £55 million in gate receipts, which is said to be only 60 percent of Manchester United's takings at the turnstiles.
The clubs high wage bill and a hefty payoff to England manager Fabio Capello, who earned £4 million a year as a coach, mean that their margins are under pressure and they have reportedly run into cash-flow problems.
The absence of David Beckham was also greatly felt; more keenly on the club's balance sheet than on the pitch. His departure has cost the club between £24 million and £30 million, according to a study by the University of Catalonia.
Under Ramon Calderon, Real embarked on a spending spree, including high-profile purchases of Arjen Robben, Fabio Cannavaro and Dutch striker Ruud van Nistelrooy.
As recently as June, Calderon insisted that the club were in fact on sound financial footing. Real, however, missed out on a television rights windfall by virtue of their early exit in the Champions League. Real lost in the first knockout round to Italian club AS Roma.
In addition to the bank loan, it is claimed that directors at the club have been asked to raise additional funds.
Any financial difficulty, however, is unlikely to be felt for long. The club boasted pre-tax profits of nearly £30 million last year and a turnover of £250 million.
5 comments Last one added about 1 year ago — Leave a Comment
Salomon Gonzales about 1 year ago
I dont know all the facts regarding Real Madrid this season. Though, i'm pretty sure their CL exit had nothing to do with Beckham's departure last year. I'm sure they just made a mistake and under-estimated a very good side.
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XXX XXX about 1 year ago
Hey Salomon thanks for the comment but I don't know if you picked up on the article properly, it speaks nothing on the playing side concerning Madrid, it just deals with the finance of the club and the implications of Beckhams departure on such matters...
I go so far as to say "The absence of David Beckham was also greatly felt - more keenly on the club's balance sheet than on the pitch."
When I talk about the exit from europe to AS Roma it is also only mentioned in terms of the financial loss which has also added to the situation...
I'll take a look see if I need to edit to make that clear I thought I had thanks for the comment...
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XXX XXX about 1 year ago
Sorted...
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lio dos about 1 year ago
I think real madrid should have anticipated this when they decided to sell beckham. That decision anyway was a great loss, a bad one not only on a footballing point of view but also financially. Beckhs could have contributed greatly still on the right side of the team, who currently lacks a player there (schuster acknowlegded it, and even calderon thought of buying back beckhs from LA galaxy).
But what is done is done, i just think that a club like Real Madrid could have anticipated better such a situation. They could have spent less (robben and pepe were bought too expensive although i agree on the high quality of those players).
This news on another point worries the real madrid fan iam since i believe that to win the championsleague R. Madrid will have to buy new players to complete the roster. Quaresma (or D. Alves), Garay (or Mexes) , Diego, De Rossi and Villa (or Huntelaar) are necessary purchases. The club should consider selling Soldado, Van nistelrooy, Diarra and Saviola.
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XXX XXX about 1 year ago
Thanks Lio...
I agree and I am sure if Becks hadn't signed at the point of which he did for the Galaxy, he could have been talked into staying at Madrid, and boy have they needed him this year.
I like all your choices for future transfers... I don't know if there is anyone around that can handle being a number 10 at Real Madrid right now and all that brings, Diego maybe, but still to many question marks and to young.
I was thinking when Real bought the great players like Zidane, Figo etc they were all about 27, 28 or older and could handle it they were proven individuals. The only great player in this mould that could bring flair like that of Zidane etc and handle the pressure is Francesco Totti and he is to old now for the big move, they should have got him two years ago.
Kaka' is the other option, a great age and has the gravitas for the pressure, but they would have to break the bank literally.
Huntelaar, I am yet to be convinced, it will be interesting to watch him in Euro 2008. Villa yes I think that could be a strong move, De Rossi is the heir to Roy Keane's thrown coming second only to Mascherano, he will need persuaded very heavily to leave Rome though.
They must sell, Saviola, Diarra and Solado. Ruud they must keep he can get goals and there are not many strikers that can get into 30 goals and above these days.
Thanks Lio
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