Real Madrid's Business Model
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.
Although I am a big fan of FC Barcelona (and therefore I hate Real Madrid ahah), I must admit that real has a business model that forces respect and admiration. Even more so in view of the catastrophic institutional and financial management of Barca under Joseph Bartomeu. I think that from this point of view, Florentino Perez is a model for many presidents of soccer clubs.
ReplyDeleteRidoy RAHMAN
I am in the same situation as you. Bartomeu has ruined Barcelona and Florentino has made Real Madrid so much better. Florentino Perez is the president that every football club wants. In the past decade Real Madrid has done a way better job than any LaLiga teams when it comes to business model and finance.
DeleteReal Madrid is doing a great job when designing their business model. An evidence can be that they closed the 20/21 fiscal year with a net positive profit of 874000€. I believe it is a remalkable result as compared to other clubs and taking into account the current pandemic siutation which has harmed the whole business sector it shows a great and consistent business model.
ReplyDeleteWe all know that the best club in History of football is Real Madrid due to its titles, its players, its legends, its stadium but one of the mainly things that a club should consider is the money and the financial situation. Real madrid in the covid year it did not lost money while others yes. Our presi (suFlorentineza) is the envy of all the other clubs. He manages everything in a perfection way and he always try to solve problems legally and checking what the club can afford or not. For example, Real madrid is not having any big transfer from Eden Hazard (100M) but now we are doing the best stadium in the world and we will bring Mbappe to the spanish capital.
ReplyDeleteBut we saw that Messi is the best player in the world! :)
DeleteBut i have to admite that this year Real Madrid is doing a really great job and Benzema is killing the other teams!
They have a really good team and the president used to manage all in a really good way, he always get what he wants, so yes, the business model from real madrid is a really good one to admire!
Dear The Fall of the Galacticos, I would like to know more about this business plan of real madrid. I don't see much difference in the method that real madrid uses. Many clubs try to brand their logo/name in order to stimulate sales, why is Real Madrid different ? In addition, I think Real Madrid has done a smart job of outsourcing TV temps. In the commercial field, they will indeed have 52% of the entire turnover in 2020 from commercial.
ReplyDeleteI hope you can tell what real Madrid is doing better than other clubs.
Roger
Joaquim Passi
ReplyDeleteIt is true that even though I am a big fan of FC Barcelona, I completely envy the incredible economic and football organisation of Real Madrid. I have to admit that this team has been very lucky with its president who has been able to organise different aspects and control the money of this club very well. Many teams should take a bit of an example from this presidency.
I have a doubt reading this post (Professor, if you read this and know it, can you answer me? Hahaha).
ReplyDeleteThis strategy that was first used by Manchester United, has to do with the Glazers?
Undoubtedly, Real Madrid has always protected what is most important to them, the reputation of the club ahead of anyone else.
ReplyDeleteI think this stance has always had an impact on business models over the years, which can clearly be criticized for the way they treat their players, but which undoubtedly always pays off.