Real Madrid have made a powerful statement in this summer’s transfer market, spending €178 million on a squad rebuild — the club’s third-largest investment ever, only behind the historic windows of 2009 and 2019.

Despite Spain’s strict financial controls, the club managed to strengthen with four key additions: Trent Alexander-Arnold arrived on a free transfer, while Álvaro Carreras, Franco Mastantuono, and Dean Huijsen were signed in big-money deals.

According to MARCA, this ambitious transfer campaign was made possible by two major financial levers that injected over €100 million into Madrid’s budget.

Valdebebas youth academy sales: Homegrown players generated €31 million, with all departures structured to include sell-on clauses and buy-back options, ensuring the club maintains long-term control.

FIFA Club World Cup windfall: Hosted in the United States, the tournament earned Madrid €80 million, despite criticism over its demanding schedule.

This dual strategy of financial ingenuity and sporting ambition has given Madrid one of the strongest balance sheets in Europe while enabling them to invest heavily in the squad.

The €178 million outlay ranks just below the iconic 2019 summer — when Madrid brought in Eden Hazard and others — and the legendary 2009 spree, which delivered Cristiano Ronaldo, Kaká, Karim Benzema, and current coach Xabi Alonso.

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