Real Madrid announced world's highest-earning club

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Real Madrid have recorded record revenues of €620million (£561m) in their accounts for the financial year 2015/16.

It means the Spanish giants have surpassed Manchester United (£515.3m) and Barcelona as the world's highest-earning club.

While Barcelona posted a figure of €679m revenue, eclipsing the side from the capital by nearly €60million, this included player sales whereas Madrid excluded such income - as Deloitte do in their annual rich list.

Removing player sales of around €67m takes Barca's revenue to €612m and means that the Madrid outfit have surpassed their arch rivals, who are suffering from still being on the relatively old terms of their sponsorship agreement with Qatar Airways as they continue their search for a new club sponsor.

Madrid's revenue is up nearly 8% from last year's mark while net debt fell by over €100m and their net profit beats the Nou Camp club, albeit by just €30.3m to €29m.

[PHOTO: COURTESY]

A club statement announcing the Bernabeu club's figures read:

"Operating revenues for the financial year 2015/16, without taking into account capital gains obtained as a result of player transfers, have topped 600 million euros for the first time, reaching a figure of 620.1 million euros, a 7.4% increase on the previous financial year.

"The operating result before repayments and player transfers (“recurring EBITDA”) has risen to 163.2 million euros, which is the highest figure ever reached by the club, representing a 26.3% increase on revenue figures and a rise of 20.9% on the previous financial year. This improvement in profitability is due to an increase in revenues having subtracted operating expenses and provisions corresponding to risks and contingencies.

"A pre-tax profit of 43.3 million euros has been recorded, which is 22.5% less than the previous financial year. This is due to the non-recurrent effect of player transfers, despite the operating improvements recorded. After achieving a net profit (after tax) of 30.3 million euros, net worth has risen to 442.2 million euros.

"The cash balance has risen by 102.6 million euros to reach a figure of 211.5 million euros, thanks to higher cash flow generated by operations and restraints on investments.

"As a result of the increase in liquid assets and the reduction of creditor balances by investments, the net debt has fallen by 108.9 million euros to sit at a figure of -13.1 million euros, which in reality represents, not a debt but rather a net liquidity position. Therefore, multiples of debt over EBITDA and net worth have been reduced to zero, indicating a position of maximum solvency."