Real Madrid becomes first sports club to hit €1.2 billion revenue

Real Madrid has become the first sports organisation to generate more than €1.2 billion in annual operating revenue, posting a record €1.221 billion for the 2025–2026 financial year despite ending the season without winning a major trophy.

The numbers suggest Real Madrid is becoming less dependent on trophies to drive financial growth, with commercial income and the redeveloped Santiago Bernabéu now playing a much bigger role in the club’s earnings

The club also reported record earnings before interest, taxes, depreciation and amortisation (EBITDA) of €287.4 million, up 18% from the previous financial year, while net profit after tax rose 8% to €26.3 million. The latest result marks the 26th consecutive year Real Madrid has closed its books with a profit.

It’s one thing to post record revenue. It’s another to do it in a season without major silverware. So, where did the money come from?

The Santiago Bernabéu continues to reshape Real Madrid’s finances.

Revenue generated from the stadium reached €363 million during the financial year, more than double the level recorded before redevelopment began in 2019.

Much of that growth can be traced to the Bernabéu. Since the redevelopment, the stadium has evolved into a major commercial asset, creating new sources of revenue beyond football matches.

The redevelopment project has now attracted cumulative investment of more than €1.4 billion.

Although Real Madrid reported net debt of €9 million after excluding stadium-related financing, the club also ended the financial year with €83 million in cash and access to €475 million in undrawn credit facilities, providing additional financial flexibility as repayments continue.

Management maintains that the increased revenue generated by the renovated stadium will continue to support those long-term obligations.

Away from the stadium, Real Madrid’s commercial business also delivered another year of growth.

Marketing revenue climbed to €539 million, supported by renewed sponsorship agreements and new commercial partnerships. Although revenue from official merchandise fell compared with the previous financial year, stronger sponsorship and licensing income more than offset the decline.

The club said revenue has grown by 61% since the 2018–2019 financial year, with 93% of that increase coming from businesses it manages directly rather than broadcasting income. That reflects a deliberate strategy to diversify earnings and reduce dependence on television rights and prize money.

Despite posting another record financial year, Real Madrid continues to spend heavily on maintaining its competitive edge.

The club invested €192 million across its sports squads, facilities and technology during the financial year, including €161 million on player acquisitions as it strengthened both its football and basketball teams.

Sports-related costs have also risen, but Real Madrid said wages and player amortisation represented 46% of revenue, remaining below the 50% level widely regarded across football as a healthy benchmark for financial sustainability.

Real Madrid’s latest financial results offer another reminder that the economics of elite football are changing.

For years, winning major trophies was seen as the most reliable way to grow revenue through prize money, broadcasting distributions and merchandise sales. Those remain important, but they are no longer the only drivers of financial growth.

The club’s latest accounts show that long-term investments in infrastructure and commercial operations are beginning to deliver consistent returns. The Santiago Bernabéu has evolved into a significant source of recurring income, while sponsorships, licensing and other commercial activities continue to expand the club’s revenue base. Together, they have reduced Real Madrid’s dependence on the financial rewards that come with winning trophies.

That does not mean success on the pitch has become less important. Winning still strengthens a club’s brand, attracts sponsors and creates additional revenue opportunities. However, Real Madrid’s results suggest that the world’s biggest clubs are increasingly building business models that can withstand an underwhelming season on the field.

For football clubs across Europe and beyond, the message is hard to ignore. Investing in modern stadiums, commercial partnerships and fan experiences is becoming an increasingly important part of long-term financial strategy.