La Fábrica is paying for the transfers. Real have already recovered almost €190m

Real Madrid have spent €225 million on reinforcements this summer, but José Mourinho’s squad rebuild has largely been financed by the club’s own academy. According to El País, the sale of 12 La Fábrica graduates and income from rights retained in previous deals have generated around €190 million — almost 90% of Madrid’s transfer expenditure. 

Nico Paz and Gonzalo García generated the biggest returns, but Madrid have also collected substantial sums thanks to percentages retained in deals involving players such as Víctor Muñoz, Álvaro Rodríguez, Mario Gila and Álex Jiménez. It is a simple but extremely effective policy: even when a youngster leaves, Madrid often retain a stake in his future value. 

Yan Diomande, Marc Cucurella, Carlos Espí and Denzel Dumfries account for the €225m spent, while Ibrahima Konaté and Bernardo Silva arrived without transfer fees. AS puts the academy-related income even higher, at €199m. 

There can be a debate about whether more academy graduates should actually play for the first team. Financially, though, the model is difficult to argue with. La Fábrica isn’t only producing footballers. It’s producing Real Madrid’s transfer budget.