Real Madrid reveal extent of financial distress, gross debt escalates to €901 MILLION

Spanish giants Real Madrid were completely inactive the previous summer transfer window. No players arrived at the club, despite several key players leaving the Bernabeu outfit with the hope of a new challenge elsewhere. Until now, it was believed that Los Blancos were saving up on their finances to sign Kylian Mbappe next summer. But a sensational report now suggests that Real Madrid face a massive financial deficit, with debt estimated at €901 million. 

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Real Madrid debt skyrockets to €901m

The coronavirus spread and the subsequent lockdown has had a detrimental impact on the finances of every club across Europe. And the wealthiest of the clubs have failed to stay aloof from the financial crisis. Spanish giants Barcelona had reported a debt estimated at €1.2 billion recently, as they head towards bankruptcy due to lack of a proper financial plan.

Now, Real Madrid have also joined the list. The club, in their annual general meeting, have revealed they owe a debt to the tune of €901 million, according to a report by SPORT. The defending LaLiga champions owe €355 million in net debt, of which proceeds of €114 million have been directed towards the renovation of the Bernabeu. 

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Real Madrid finances affected due to Bernabeu redevelopment 

In a breather, Real Madrid owe just €203 million in short-term debt, ensuring a better financial position than their El Clasico rivals. Barcelona owe €126 million in transfer fee payments alone, with the club yet to pay off the transfer amount to 19 clubs, including Liverpool for Philippe Coutinho's signing. 

Notably, Real Madrid had introduced a pay cut for the first team players, belonging to the football and basketball teams, following the lockdown. But, the crisis at Camp Nou is worse than earlier predicted. The Blaugrana haven't paid the salaries of the first team players for the period between July and December last year. 

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Real Madrid transfers: Several players sold last summer 

Zinedine Zidane couldn't rope in new players last summer. But the club did sell out some key players during that period, including James Rodriguez, Achraf Hakimi, Sergio Reguilon and Oscar Rodriguez. Meanwhile, Welsh winger Gareth Bale and Spanish forward Borja Mayoral were loaned out. 

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Image courtesy: Real Madrid Twitter