Real Madrid slash net debt as profits soar

Days after splashing over 90 million euros ($118.5 million, £75.9 million) for the services of Gareth Bale, Real Madrid have announced a rise in profits and a 27.4 percent reduction in their net debt in their accounts for the 2012/13 season. The Spanish giants saw their income continue to grow as revenue rose to 520.9 million euros, up 1.3 percent on last year\'s record breaking total that saw a football club earn more than 500 million euros for the first time ever. Net profit also grew a staggering 52.4 percent from 24.2 to 36.9 million euros as costs were stabilised during a relatively quiet time in the transfer market last year when Luka Modric was their only major purchase. And that profit allowed for a significant reduction in the net debt from 124.7 to 90.6 million euros. Those figures don\'t even include a lucrative new shirt sponsorship deal with Fly Emirates worth 29 million euros a year which came into effect at the beginning of the current season. On top of the capture of Bale, Real spent just short of 70 million euros on the young Spanish duo of Isco and Asier Illarramendi earlier in the transfer window. However, the club also recouped around 100 million euros in sales over the past few months as Mesut Ozil joined Arsenal on transfer deadline day and Gonzalo Higuain, Raul Albiol and Jose Maria Callejon all moved to Napoli back in July. Kaka\'s decision to leave Madrid to rejoin AC Milan also eased the Spanish side\'s wage bill as they were relieved of his 10 million euro net salary for the final year of his deal. Source: AFP