Real Madrid warned of China revenue hit after Mbappe controversy

Kylian Mbappe’s dispute in China could have significant financial consequences for Real Madrid, with the fallout extending beyond the player and affecting the club’s commercial activity and La Liga income.

A widely circulated video showing the Real Madrid forward joking about former Chinese leader Mao Zedong has prompted widespread anger in China. Mbappe has been accused of offending national sentiment and crossing accepted boundaries in his treatment of an important historical figure.

Mbappe has apologised for the incident, as has La Liga president Javier Tebas. The league has also suffered a direct commercial setback after Chinese broadcaster CCTV stopped showing La Liga matches, including games involving the France international.

Mbappe signed a historic contract with Real Madrid that allows him to retain approximately 80% of the revenue generated from his image rights. Forbes estimates that he earns about 100m euros a year, with 30m euros coming from sponsorship agreements.

Several Chinese companies have ended their commercial partnerships with the forward. They include Dongpeng Beverage Group and dairy companies Mengniu and Milkground. Real Madrid is therefore likely to lose its share of the profits from those agreements.

The dispute is also threatening the club’s position in the Chinese market while the full impact of Mbappe’s apology is assessed. China accounts for between 10% and 15% of Real Madrid’s international merchandise sales, while Mbappe’s shirt is the club’s best-selling product.

Campaigns have appeared on major Chinese football forums, including Dongqiudi, explicitly calling on supporters not to buy official Mbappe merchandise.

Chinese social media platform RedNote has also begun removing content connected with the striker. The platform had previously worked with Mbappe on partnership agreements and advertising campaigns.

The effect of those campaigns on Chinese consumers remains difficult to measure. A similar impact is being seen in Spain, where supporters continue to visit Santiago Bernabeu to buy the forward’s shirt.

CCTV’s decision to suspend La Liga coverage could have a further effect on Real Madrid through the league’s central revenues. A reduction in broadcasting income would mean less money being distributed to clubs in the first and second tiers of Spanish football.

Each club’s allocation also depends partly on its viewing figures. Real Madrid generated more revenue than Barcelona from that area last season, increasing the significance of any reduction in the league’s overall income.

La Liga distributed 1.432bn euros among its clubs, with Real Madrid receiving about 160m euros. That figure is now expected to fall significantly if the suspension of broadcasts continues.

The controversy comes as Real Madrid’s commercial relationship with China is already closely linked to Mbappe, making the consequences of the dispute potentially wider than the loss of individual sponsorships.