Madrid has 128 million euros in cash and 265 million euros in unused loans granted
Madrid, Nov 24: In the upcoming summer transfer window, Real Madrid is reportedly setting its sights on securing the services of Erling Haaland and Kylian Mbappe.
The La Liga powerhouse, famously known for its ‘Galacticos’ recruitment program under the leadership of Florentino Perez, has earmarked a substantial £342 million ($429 million) for the upcoming transfer season.
With a history of acquiring footballing superstars such as Cristiano Ronaldo, Kaka, Zinedine Zidane, Ronaldo, David Beckham, and Luis Figo, Real Madrid is keen to continue its legacy by pursuing the talents of Mbappe and Haaland.
Spanish sports weekly Diario AS suggests that Real Madrid’s budget could encompass up to £342 million, with £111 million readily available in their coffers and an additional £231 million identified and authorized for financing.
The club has also strategically managed its wage bill, making provisions for the sustained presence of a high-profile player for five or six seasons, thanks to reduced compensation expenditures.
According to Diario AS, Real Madrid has successfully decreased its annual salary expense to £284 million, marking a £68 million reduction since the summer of 2022.
This prudent financial management has been achieved even as the club’s overall income has surged by 17%. Notably, parting ways with seasoned players like Karim Benzema and Eden Hazard has played a pivotal role in curbing payroll expenses.
Real Madrid’s interest in Kylian Mbappe is not new, and if the PSG star opts against extending his contract, a potential move could materialize at the end of the current season.
On the other hand, Erling Haaland, with a release clause embedded in his Manchester City contract, could be pursued by teams outside England.
The release clause stands at £172 million ($216 million) for next summer and £150 million ($188 million) in 2025.Regarding the signing, the club has 128 million euros available in cash (Treasury) according to the latest official accounts, and credit policies granted without having available for a value of 265 million euros (financing already found and approved in case it was necessary).With respect to the emoluments of the future star, and this is more important because it is an expense that will be repeated for at least five or six seasons, The club has also made room in salary bill. Mbappé and Haaland are on the horizon. The ECA (European Clubs Association) has a scale that measures the economic health of entities.
It is the Efficiency Ratio: the percentage of a club’s total personnel expenses cannot be greater than 70% of total income.
If last season Madrid was at 72% (519 million total salary expenses for 712 million final income), in the latest approved accounts it lowered it to 54% (personnel expenses of 452 million for total income of 843 millions). (Agencies)