The Fall of the Galacticos

Have we ever asked ourselves why Karim Benzema has been Real Madrid's sole striker for more than 10 years straight? Remember a couple of years ago when he was always heavily criticized for not scoring and missing big chances? No matter how many strikers joined Real Madrid, they always left at some point and he always remained as a starter. Why is that? And how come did Real Madrid win everything with Benzema as their only striker but didn't win anything with the Galacticos who were expected to win everything there is to win?  The idea of the Galacticos first started when the businessman Florentino Perez decided to run for the presidency of Real Madrid, and as part of his campaign, he secretly agreed to pay 1.8 million euros to Ballon D'or winner (world's best player) and FC Barcelona's star player, Luis Figo, as part of an agreement which states that if Florentino Perez becomes Real Madrid's president, he will pay Figo's release clause, and bring him to...

Real Madrid follows a business model that allows it to use its club name and logo as a worldwide valuable brand, and to use sponsorship along with product sales strategies to raise additional funds during football matches. It's also worth noting that the club markets and sells its TV and broadcasting rights to a variety of companies, resulting in additional revenue. On a global scale, Real Madrid has effectively implemented this plan over the years. Nonetheless, Real Madrid's business model is not unusual; it had previously been used by other sports clubs, such as Manchester United, whom had initiated the process of commercialization of sports brands starting from the 90s and had proved that the implementation of this strategy was highly successful, allowing for additional revenue for the club.

Real Madrid is one of the few clubs in the world that are owned by a corporation rather than a person. Real Madrid is owned by a group of "socios" who are essentially the club's fans and members. Despite the fact that Florentino Perez is the club's current President, he is not the club's owner. There are currently around 90,000 "socios" who collectively own the club. They pay a fee (similar to a season ticket) each year to see the team and enjoy the club's sporting facilities. Every 4 years, an election determines the club President from the 90,000 socios to represent the fans and lead the club. The club can only spend what they generate from their various revenue sources, and the President cannot insert his own personal money into the club's budget. These revenue sources mostly include ticket sales, merchandising sales, and broadcasting rights, which account for the majority of the club's revenue.

La Liga Santander is the top football league in Spain and one of the 5 major leagues in Europe, they are the governing body that regulates and monitors all the activities that are happening between the club and within the clubs as well.  The league consists of 20 clubs, where every year 3 clubs are relegated and 3 clubs are promoted from La Liga SmartBank (Segunda/Second Division).  Hence, La Liga and the Spanish football federation have the authority to supervise and moderate certain aspects of each club.  The clubs with the biggest history and power in the league are FC Barcelona, Real Madrid CF, and Atletico de Madrid. Those clubs have been the protagonists of the league for the past decades and they are mainly the clubs that represent Spain in the European arena along with Sevilla, Villa Real, and Atletic Club de Bilbao.  For Real Madrid, the biggest sport for the club is men's football, and for them to grow their team, they have to abide by the rules enforced by...

Real Madrid has most likely accomplished everything a football team could. Real has been one of the most popular clubs in the world, with a record of 33 La Liga wins, 19 Copa del Rey trophies, a staggering 13 European Cups, and 2 UEFA Cups, making them unrivaled in the race for the best football clubs of all time. The 6th of March, 1902 was where it all began, with the name "Madrid Foot Ball Club", but it wasn't until 1920 that King Alfonso XIII granted the title of "real" – or "royal" in English – on them. Los Blancos (their nickname as they started wearing all white kits) were one of the pioneering teams as sport developed in Spain, and they were crucial to the creation of championships such as the Copa del Rey, where they won four of the first six titles. Real Madrid were one of the first teams to help create a European cup (UEFA Champions League now) which involves the best teams in the continent. Los Blancos managed to win all first 5 editions, an...