Real Madrid refuse to explain ‘operating expenses’ | OneFootball

Real Madrid have refused to explain the reasons why £104 million of the club’s operating expenses are unaccounted for.

An investigation by The Telegraph has revealed that around £115m was placed into a category of ‘other operating expenses’ in Madrid’s latest financial report.

Most of that figure is unexplained.

The expenses reportedly relate to a deal with a United States financier for the ‘sale of future marketing income’.

The first agreement with the private equity group Providence was made during the 2017/18 financial year.

This provided the club with money in return for the sale of future income streams. The deal has subsequently been extended in value and length.

The income was entered into Madrid’s accounts as revenue rather than debt.

While the deal with Providence is not thought to be illegal, it is unclear whether it complies with UEFA’s financial rules.

The primary question relates to whether clubs can record the sale of future revenues as marketing income rather than debt.

No other European clubs reportedly have similar levels of undefined expense payments in their financial results.

La Liga bosses have declined to answer questions about Madrid’s finances, while UEFA also refused to comment on the issue.

This latest revelation takes on added relevance given Madrid’s stance on the financial situation of big rivals Barcelona.

Madrid issued a statement earlier this year expressing concern over Barca making payments to companies registered to former referee official Jose Maria Enriquez Negreira.

Barcelona have also sold portions of future revenue streams as they battle to comply with Financial Fair Play regulations.