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Profile: Real Madrid Club de Fútbol

Real Madrid Club de Fútbol was a participant or observer in the following events:

The Spanish football club Real Madrid sells its training ground to the city council for €480m to wipe out a €290m debt. Under the agreement, the football club will relocate to a new training complex on the outskirts of the city by 2004. The council plans to construct four huge office blocks on the site of the current training ground, as well as a new 20,000-capacity sports pavilion for the city’s 2012 Olympic bid. Real president Florentino Perez says the deal will lift a major burden that has been hanging over the club. “I have been working for this from the very day I became president,” says Perez. “This is very important for Real Madrid because we have removed a terrible burden and will soon have a new training ground which will be even better than AC Milan’s Milanello training complex. From now on we can live without anxiety or financial difficulties. Real Madrid has not only to be a sporting leader, it must also be a financial leader too.” (BreakingNews(.ie) 5/8/2001) Real will use the proceeds of the sale to buy top players such as Zinedine Zidane, Luis Figo, Ronaldo, and David Beckham, but the transaction will be investigated by the EU (see March 3, 2004). However, Real will not be forced to repay any of the money (see (November 9, 2004)).

The European Union announces it has begun a preliminary investigation into the sale of Real Madrid’s training ground to the city council in 2001 (see (May 8, 2001)). The sale netted €480m, which wiped out the football club’s €290m debt and enabled it to buy players such as Zinedine Zidane, Ronaldo, Luis Figo, and David Beckham. “We believe Madrid’s regional authorities may have overpaid,” says Tilman Luder, the EU’s competition spokesman. He also warns that the club may have to pay back some money if the price exceeded the market value. “We have sent a questionnaire to the Spanish government: to find out why they bought this land, at what price, and if they can prove it was at the market price. We suspect that the purchase price was influenced by the fact that this property had been reclassified, which increased its value,” says Luder. If Spain’s response to the questionnaire is not satisfactory, the EU may launch a formal investigation. (Nash 3/4/2010) The EU will later drop the matter (see (November 9, 2004)).

The European Union drops a competition probe into a transaction in which football club Real Madrid received hundreds of millions of Euros from the Madrid city council in return for its training ground (see (May 8, 2001) and March 3, 2004). The commission concludes that no state aid for Real was involved in the transaction and no government resources were transferred to it. (Sports Illustrated 11/9/2004)

Real Madrid logo.Real Madrid logo. [Source: SoccerFiesta (.net)]Deloitte publishes its Football Money League rankings for the 2004-2005 season. The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€275.7m)
(2) Manchester United (€246.4m)
(3) Milan (€234.0m)
(4) Juventus (€229.4m)
(5) Chelsea (€220.8m)
(6) Barcelona (€207.9m)
(7) Bayern Munich (€189.5m)
(8) Liverpool (€181.2m)
(9) Internazionale (€177.2m)
(10) Arsenal (€171.3m)
(11) Roma (€131.8m)
(12) Newcastle United (€128.9m)
(13) Tottenham Hotspur (€104.5m)
(14) Schalke (€97.4m)
(15) Lyon (€92.9m)
(16) Celtic (€92.7m)
(17) Manchester City (€90.1m)
(18) Everton (€88.8m)
(19) Valencia (€84.6m)
(20) Lazio (€83.1m) (Deloitte 2/2006 pdf file)

Deloitte publishes its Football Money League rankings for the 2005-6 season. The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€292.1m)
(2) Barcelona (€259.1m)
(3) Juventus (€251.2m)
(4) Manchester United (€242.6m)
(5) AC Milan (€238.7m)
(6) Chelsea (€221.0m)
(7) Internazionale (€206.6m)
(8) Bayern Munich (€204.7m)
(9) Arsenal (€192.4m)
(10) Liverpool (€176.0m)
(11) Lyon (€127.7m)
(12) Roma (€127.0m)
(13) Newcastle United (€124.3m)
(14) Schalke (€122.9m)
(15) Tottenham Hotspur (€107.2m)
(16) Hamburg (€101.8m)
(17) Manchester City (€89.4m)
(18) Rangers (€88.5m)
(19) West Ham United (€86.9m)
(20) Benfica (€85.1m) (Deloitte 2/2007 pdf file)

Deloitte publishes its Football Money League rankings for the 2006-2007 season. The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€351.0m)
(2) Manchester United (€315.2m)
(3) FC Barcelona (€290.1m)
(4) Chelsea (€283.0m)
(5) Arsenal (€263.9m)
(6) AC Milan (€227.2m)
(7) Bayern Munich (€223.3m)
(8) Liverpool (€198.9m)
(9) Internazionale (€195.0m)
(10) AS Roma (€157.6m)
(11) Tottenham Hotspur (€153.1m)
(12) Juventus (€145.2m)
(13) Olympique Lyonnais (€140.6m)
(14) Newcastle United (€129.4m)
(15) Hamburg SV (€120.4m)
(16) Schalke 04 (€114.3m)
(17) Celtic (€111.8m)
(18) Valencia (€107.6m)
(19) Olympique de Marseille (€99.0m)
(20) Werder Bremen (€97.3m) (Deloitte 2/14/2008 pdf file)

Deloitte publishes its Football Money League rankings for the 2007-2008 season. The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€365.8m)
(2) Manchester United (€324.8m)
(3) FC Barcelona (€308.8m)
(4) Bayern Munich (€295.3m)
(5) Chelsea (€268.9m)
(6) Arsenal (€264.4m)
(7) Liverpool (€210.9m)
(8) AC Milan (€209.5m)
(9) AS Roma (€175.4m)
(10) Internazionale (€172.9m)
(11) Juventus (€167.5m)
(12) Olympique Lyonnais (€155.7m)
(13) Schalke 04 (€148.4m)
(14) Tottenham Hotspur (€145.0m)
(15) Hamburger SV (€127.9m)
(16) Olympique de Marseille (€126.8m)
(17) Newcastle United (€125.6m)
(18) VfB Stuttgart (€111.5m)
(19) Fenerbahce (€111.3m)
(20) Manchester City (€104.0m) (Deloitte 2/13/2009)

Deloitte publishes its Football Money League rankings for the 2008-2009 season, in which Real Madrid was the first European club to earn more than €400m. The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€401.4m)
(2) FC Barcelona (€365.9m)
(3) Manchester United (€327.0m)
(4) Bayern Munich (€289.5m)
(5) Arsenal (€263.0m)
(6) Chelsea (€242.3m)
(7) Liverpool (€217.0m)
(8) Juventus (€203.2m)
(9) Internazionale (€196.5m)
(10) AC Milan (€196.5m)
(11) Hamburger SV (€146.7m)
(12) AS Roma (€146.4m)
(13) Olympique Lyonnais (€139.6m)
(14) Olympique de Marseille (€133.2m)
(15) Tottenham Hotspur (€132.7m)
(16) Schalke 04 (€124.5m)
(17) Werder Bremen (€114.7m)
(18) Borussia Dortmund (€103.5m)
(19) Manchester City (€102.2m)
(20) Newcastle United (€101.0m) (Deloitte 3/2010 pdf file)

Some Spanish football clubs fail to back a proposed agreement on how to share income from collectively-sold domestic television rights from the 2015-16 season. Under the agreement, the largest two Spanish clubs, Read Madrid and Barcelona, would share 34 percent of all income, Atletico Madrid and Valencia would share 11 percent, the remaining 16 top-tier Spanish clubs would split 45 percent equally, and there would be parachute payments for relegated clubs. The proposal is opposed by Sevilla, Zaragoza, Villarreal, Real Sociedad, Athletic Bilbao, and Espanyol, with Malaga undecided. “Only Real Madrid and Barcelona stand to gain from this,” says Sevilla president Jose Maria del Nido, spokesman for the rebels. “The two giants have earned €1,500 million more than the next club in the last 10 years, and with this agreement in place four clubs—Real Madrid, Barcelona, Atletico Madrid, and Valencia—will all earn more in the next six years than a team that finishes third in the league.” The rebels propose a different agreement under which revenue would be shared more equally. “Of the 79 leagues played 51 have been won by Real Madrid or Barcelona, which is 65 percent against 35 percent for the rest,” adds del Nido. “In the last 10 years the two big clubs have won 80 percent of the titles with 20 percent for the rest. And most significantly, in the last five years only these two have won the title. If this continues the league title will have been sold in advance for the next 10 years.” (Redshaw 11/18/2010)

Spanish football clubs conclude a new TV revenue-sharing agreement, which has been under negotiation for some time (see (November 17, 2010)). Under the deal, Real Madrid and Barcelona will share 35 percent of TV revenues; the second and third most popular clubs, Atletico Madrid and Valencia, will share 11 percent; and the remaining 16 clubs will get 45 percent between them. In addition, for the first time the Spanish league will offer a “parachute payment” to protect teams that are relegated to a lower tier: the sudden drop into the second division—and large fall in TV income—had previously been difficult for clubs to handle as they still had to pay high wages despite playing in a lesser competition. The unequal distribution draws some protest. For example, Sevilla sporting director Ramon Rodriguez Verdejo comments that the Spanish league “reminds me more and more of Scotland,” which has been dominated by two clubs for decades. Sports Illustrated and Guardian columnist Sid Lowe adds that the “inequality” between Barcelona and Read Madrid on the one hand and the other 18 clubs on the other is now “enshrined,” commenting that the other 18 teams in Spain “no longer aspire… to be the best; but they [do] aspire to stay in business.” (Lowe 1/14/2011)

Deloitte publishes its Football Money League rankings for the 2009-2010 season, in which the top 10 clubs are exactly the same, although in a slightly different order, as they were the previous year (see March 2010). The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€438.6m)
(2) FC Barcelona (€398.1m)
(3) Manchester United (€349.8m)
(4) Bayern Munich (€323.0m)
(5) Arsenal (€274.1m)
(6) Chelsea (€255.9m)
(7) AC Milan (€235.8m)
(8) Liverpool (€225.3m)
(9) Internazionale (€224.8m)
(10) Juventus (€205.0m)
(11) Manchester City (€152.8m)
(12) Tottenham Hotspur (€146.3m)
(13) Hamburger SV (€146.2m)
(14) Olympique Lyonnais (€146.1m)
(15) Olympique de Marseille (€141.1m)
(16) Schalke 04 (€139.8m)
(17) Atletico Madrid (€124.5m)
(18) AS Roma (€122.7m)
(18) Vfb Stuttgart (€114.8m)
(20) Aston Villa (€109.4m) (Deloitte 2/2011 pdf file)

Deloitte publishes its annual rankings of the richest clubs in European football. There is little change to the top 10, and the top seven clubs are in exactly the same positions as they were last year (see February 2011). The rankings of the top 20 European clubs and their football earnings are:
(1) Real Madrid (€479.5m)
(2) FC Barcelona (€450.7m)
(3) Manchester United (€367m)
(4) Bayern Munich (€321.4m)
(5) Arsenal (€251.1m)
(6) Chelsea (€249.8m)
(7) AC Milan (€235.1m)
(8) Internazionale (€211.4m)
(9) Liverpool (€203.3m)
(10) Schalke 04 (€202.4m)
(11) Tottenham Hotspur (€181m)
(12) Manchester City (€169.6m)
(13) Juventus (€153.9m)
(14) Olympique de Marseille (€150.4m)
(15) AS Roma (€143.5m)
(16) Borussia Dortmund (€138.5m)
(17) Olympique Lyonnais (€132.8m)
(18) Hamburger SV (€128.8m)
(19) Valencia (€116.8)
(20) Napoli (€114.9). (Deloitte 2/2012; Press Association (London) 2/9/2012)


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