Comparative Profitability of FC Barcelona and Real Madrid
Kevin Siguencia
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
This study analyzes the financial performance and profitability of FC Barcelona and Real Madrid, two of the world's most renowned football clubs. Both clubs generate significant revenue through matchday earnings, broadcasting rights, sponsorships, and merchandise sales. For the 2023/24 season, Real Madrid led with a record revenue of over €1 billion, while FC Barcelona reported approximately €760 million. Interestingly, FC Barcelona surpassed Real Madrid in television revenue, securing €162.49 million compared to Real Madrid's €159.55 million. This research utilized financial reports and Deloitte's Football Money League rankings to compare profitability factors, including revenue growth and operating costs. The findings indicate that while Real Madrid maintains a superior position in overall revenue, FC Barcelona shows strength in specific areas, particularly television revenue due to strategic partnerships. The implications of this study highlight the diverse economic strategies employed by top football clubs and their impact on financial sustainability in European football.Keywords: Profitability, Financial Performance, Football Clubs, Revenue, Broadcasting Rights