Real Madrid’s revenue is comparable to Manchester United, the world’s number one football brand

In the past four years, Real Madrid has firmly occupied the first place in the club wealth list published by Deloitte accounting firm. Their performance in the Champions League is poor, but this does not prevent them from becoming the world's number one football brand. In terms of box office and sponsorship revenue, they are slightly behind Manchester United and others, but they are still in the same grade. Real Madrid's La Liga broadcast contract lasts for seven years and is worth 1.1 billion euros, which is far more than Manchester United.

Spain’s tax advantage makes it difficult for the Premier League and Serie A to compete

Spain’s tax laws are also of great help to them. Foreign stars only need to pay 23% personal income tax in the first five years of playing in La Liga. , while the tax rate in Serie A and the Premier League is around 50% (the British government has just recently adjusted this standard). For example, if Kaka wants to receive an after-tax annual salary of 10 million euros, Real Madrid will need to pay about 13 million euros before tax; and if he switches to Manchester United or AC Milan, with an after-tax annual salary of 10 million euros, the club will have to pay 20 million. EUR! ! If calculated based on a five-year contract, the salary difference is 35 million euros, which is enough to pay half of Kaka's transfer fee.

Real Madrid is not a non-profit organization and is backed by government banks

Real Madrid is one of the only four clubs in Spain that has not carried out corporatization reforms. It adopts a membership system and passes the approval at regular intervals. A president and club leadership are elected. This is a non-profit organization. Whether it makes money or loses money, it has nothing to do with the personal interests of the club chairman. He is only responsible for the operation. Since the money spent is not his own, it is naturally lavish.

On the other hand, Real Madrid has a special status in Spain and Madrid and has strong political and social influence, so it is easy to obtain preferential loans from banks and even the government. It doesn't matter how much the debt is, because the government and banks will never dare to let Real Madrid go bankrupt. Moreover, these debts have nothing to do with any individual. No matter how much money Florentino spends and how much debt he owes, as long as the chairman’s term is over, he can just walk away without any risk