It was broke before completing the two most expensive transfers ever in 2009, bringing in Kaka for $86 million and Cristiano Ronaldo for $123 million. And it was broke when setting the previous transfer records, buying Luis Figo for $57 million in 2000 and Zinedine Zidane for $71 million in 2001.
Real pulled off the Figo and Zidane acquisitions by selling its huge downtown training complex to the city of Madrid for $445 million. The president, Florentino Perez, used the cash to pay down $271 million in club debt and blew the rest on the players. After that, Real dug itself into a financial hole all over again -- a hole on which construction has yet to conclude.
Despite generating more than an estimated $500 million a year, which includes a TV deal worth more than $200 million annually, Real Madrid's debt is $414 million, according to the club's 2008-09 financial report.
Yet Real's spending hasn't stopped. Just this past transfer window, the club spent $114 million on new players and doled out what has been estimated to be around $126 million for buying out one coach and his staff and bringing in another.
Real's biggest rival is also broke.
Barcelona was broke before buying David Villa, Javier Mascherano and Adriano for $52 million, $28.4 million and $11.6 million, respectively, this summer. The club is so strapped for cash, in fact, that it took out a $195 million bridge loan to ensure that it could pay salaries.
Like Real, Barcelona also has a lucrative broadcasting deal, valued at more than $185 million a year, and brings in $293 million more in revenue. Yet like Real, Barcelona is in debt by $578 million.
But both teams show no signs of curbing their spending.
Read the rest of the article here: ESPN Soccernet
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