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he La Liga champions, Real Madrid, have lost over $173 million in income as a result of the Coronavirus pandemic.

The club announced their financial results for 2019/20, which showed that their revenue had fallen by 5.6 percent to $116.6 million.

In spite of the revenue losses, however, Madrid managed to pull a $510,916 profit; still, a deficit when compared to the $62.6 revenue from their campaign in the previous year.

When the club officially closed their financial year on the 30th of June, they held net equity of $870 million, and $204 million in liquid assets.

Madrid stated that if not for the pandemic, the club expected to have made revenues of around $1.4 billion in 2020/21.

Their latest forecast shows them to be down by 25 percent compared to their pre-corona 2019/20 budget of $1.3 billion.

A savings plan which has reportedly achieved a reduction equivalent in spending of eight percent of total annual outgoings.

Real Madrid’s soccer and basketball first teams and top-executives have also agreed to a ten percent pay cut.

La Liga clubs have all suffered, with the 20 clubs combined salary cap being brought down to $3.7 billion from a previous $4.7 billion.

In anticipation of new gambling laws, clubs were informed that their being contracts would be prohibited once the royal degree came into effect; hindering clubs from using betting profits to recover from the financial blow caused by Covid-19.

Barcelona has also been forced to reduce their salary cap by $1.1, and has made salary reductions of 40 percent; the club suffered a total after-tax loss of $158 million.

In a statement, Real Madrid said: ‘Despite the savings measures that are being implemented, the after-tax result will be significantly affected by this significant loss of income, although the club will try to materialise opportunities for improvement to try to balance the result as was achieved in the previous year.’

$252.9 million of the club’s new long-term bank loans obtained in April and May corresponded to four loans with a five-year maturity, while $81.5 million corresponded to a credit policy with a three-year maturity.