Real Madrid spend €225 million but their academy has almost paid for entire rebuild

Real Madrid spend €225 million but their academy has almost paid for entire rebuild

Real Madrid have spent heavily to strengthen Jose Mourinho’s squad this summer, but a major part of the club’s €225 million investment has been supported by an extraordinary contribution from La Fabrica.

According to a detailed report from AS , Real Madrid’s famed academy has generated an impressive €199 million through player sales and income from rights retained in former academy products.

So far this summer, Real Madrid have completed six additions, with Yan Diomande, Marc Cucurella, Carlos Espi, Denzel Dumfries, Bernardo Silva and Ibrahima Konate joining Mourinho’s squad.

The combined spending on transfer fees alone has reached €225 million, putting Real Madrid at the centre of one of the busiest summer transfer windows in La Liga.

La Fabrica sales generate €199 million for Real Madrid

The biggest story behind Real Madrid’s summer business has not only been the money spent but also the revenue coming in.

On that note, La Fabrica has generated €199 million, including direct sales and money received through percentage rights that Real Madrid retained when academy players left the club.

Gonzalo Garcia has moved to Fulham. (Photo by Fran Santiago/Getty Images)

Of those transfers, several major deals have contributed to that figure.

Gonzalo Garcia’s departure brought in €40 million , while Real Madrid have retained 30% of his future rights.

The sale involving Nico Paz has been another major source of income. Como paid €60 million for the 50% of the player’s rights that Real Madrid still controlled.

Furthermore, Victor Munoz’s move to Liverpool also added €20 million to the club’s accounts.

The total has been further boosted by deals involving several other players developed at or connected to the Real Madrid academy, including Cesar Palacios, Jacobo Ortega, Mario Gila, Alvaro Rodriguez, Alex Jimenez, Fran Garcia and Mario Martin.

For Real Madrid, this has created a highly successful summer from a financial point of view, as the club has generated almost as much through La Fabrica-related business as they have spent on strengthening Mourinho’s squad.

Real Madrid spend €225 million for Mourinho’s

Nico Paz will continue at Como. (Photo by Elsa/Getty Images)

The money generated through academy sales has arrived during an aggressive summer, as Real Madrid have spent €225 million on four players who required transfer fees.

The biggest investment has been Diomande, whose operation could eventually rise to €140 million , making the Ivorian the most expensive signing in Real Madrid’s history.

Cucurella joined from Chelsea for €55 million, while Levante received €25 million for Carlos Espi.

Dumfries completed the list of major purchases, arriving from Inter Milan in a deal worth €20 million.

Real Madrid have also added Bernardo Silva and Konate without paying transfer fees after the pair’s respective contracts at Manchester City and Liverpool expired.

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