Atletico Madrid has recently caused a stir in the transfer market by deciding to finalize the deal for Julian Alvarez from Man City for 95 million euros. Earlier, they negotiated with Man City at two price points of 45 and 60 million euros, but both were rejected. Just 24 hours after being turned down for the second time, the Madrid team decided to splurge and get what they wanted.
Before Alvarez, Atletico Madrid had added some quality personnel such as Connor Gallagher (40 million euros, Chelsea), Robin Le Normand (34.5 million euros, Real Sociedad), or Alexander Solorth (32 million euros, Villarreal). Even before the summer transfer window of 2024, and even after being invested in by Chinese investors, Atletico had never been known as a team that spent lavishly to buy players in bulk. However, things are changing at Wanda Metropolitano.
Regarding financial strength, the two teams leading La Liga are always Real Madrid and Barcelona. Atletico Madrid ranks third and is far behind the two leaders. However, they also create a significant gap with the teams behind them, even with teams of the same level as Sevilla and Valencia. Atletico's revenue for the 2022-2023 season was 358 million euros. At the same time, the numbers for Barca were 806 million euros, and for Real were 843 million euros.
From 2017 to the present, after moving from Vicente Calderon to Wanda Metropolitano, Atletico's revenue has increased significantly each year. The new home is not only a place to host matches, but also has entertainment and commercial complexes that are always bustling.
From a technical standpoint, under Diego Simeone, Atletico has had 11 consecutive seasons playing in the Champions League, including two La Liga titles. This stability in performance is one of the reasons why the Argentine coach has been able to keep his position on the bench.
This season, Atletico still has a debt of around 514 million euros, but it is not a debt that needs to be repaid immediately. Last month, they issued a new share issue worth 70 million euros. Two of the companies that own the club, Atletico HoldCo and Quantum Pacific, injected these funds, with amounts of 50 and 20 million euros, respectively.
To get players like those last week, Atletico had to sell some of their excess stars. Two strikers, Alvaro Morata, have gone to AC Milan (30 million euros), while Memphis Depay has been cleared to leave. Meanwhile, veteran midfielder Saul Niguez has struggled for two years and has just joined Sevilla on loan (Atletico only has to pay part of his salary).
At the back, three stars have left the team, including Stefan Savic (went to Trabzonspor), Mario Hermoso (not renewed), and Caglar Soyuncu (went to Fenerbahce). The case of Gabriel Paulista is similar to Depay's. Not to mention, Atletico is still trying to clear the way for young talent Samu Omorodion to join Chelsea, with a proposed offer of 32.5 million euros.
All these sales of stars have given Atletico more room in their budget to welcome several top players to Madrid last week.
Regarding personnel quality, Atletico wants to push Joao Felix out to recover some of the 127 million euros they spent on Benfica in 2019. Meanwhile, with many defenders leaving, only Le Normand may not be enough. Last season, Atletico conceded the most goals in La Liga in 11 years under Simeone (68 goals in 54 matches across all competitions).
In the long term, Atletico Madrid may change ownership. Currently, Atletico HoldCo controls 70% of the shares, Quantum Pacific owns 30% of the remaining shares. American investors such as Ares Management Corporation hold 34% of Atletico HoldCo's shares, with Gil Marin and club chairman Enrique Cerezo controlling the remaining 66%.
This summer, Gil Marin has taken the first steps in building a new training facility near Wanda Metropolitano. When this project is completed, the current club's facility in the upscale Majadahonda suburb will become a very valuable real estate asset.
The last thing to be resolved is Diego Simeone's future. Last year, this charismatic coach signed an extension until 2027. The fact that he decided to buy players lavishly rather than investing in young talent this summer shows his eagerness for short-term success. When he achieves his goal, Simeone may leave the team and leave a huge void on the bench.
