Real Madrid's dire financial situation is much worse than expected

The financial situation at Real Madrid is a lot worse than it appears. The club still doesn't have an end date for the remodelling of the Santiago Bernabeu and it's unclear when supporters will be allowed back into stadiums either.

However, there's a more pressing issue they must deal with and it's about their two main sponsors: Fly Emirates and Adidas.

Both have told Madrid that right now they can't afford to match the current agreements in place. The airline company have a €40m deal whereas Adidas had agreed to pay €110m per year, 1.1 BILLION euros over 10 years. Then there's the lack of income due to playing in empty stadiums and it means finances are much tighter than previously expected.

This is why Madrid are pushing hard to sell players on high wages as those wages are only affordable due to their two main sponsorship deals. With less money incoming, they need to balance the books before they are able to splash out on new signings.

Madrid are even considering another global pay cut across the squad, even though it wouldn't be made public. The players had already agreed to a 10% cut due to the pandemic and would be asked to take a further 10% cut for next season.