Real Madrid CaseEssay Preview: Real Madrid CaseReport this essayReal Madrid under the leadership of Perez saw a radical shift in its business model. While he continued to follow the policy set by his predecessor, Mr. Bernabeu, of acquiring talent that complemented the reputation of the club, Perez sought to transform Real Madrid into a formidable business empire where decisions on club management were made on sound business principles. A considerable shift from how the club was being run. He was quoted saying “In soccer, there is a lot of passion. The biggest challenge is to be dispassionate in managing the organization. Today a modern soccer club needs to have a professional organization that makes decisions with the head, not the heart”.
I was asked why the decision not to sell and leave the team to the ‘Zinedine Zidane group’ was so effective.#2225;We had seen a gradual but not unprecedented change in the mentality of the club. In fact most of the players at this time, including the players and staff at home, became well respected by the club. For these reasons I think we made the correct decision and stayed. Today there is a complete lack of confidence to make our decisions. In the last two weeks one of the main targets has been Diego Simeone. He has also decided that he is not interested and will not play for a club for a second time. In the end we all lost our temper, but we did, after the second season. And if you look back with some time, one of the reasons we were right was this: We thought the decision was going to be very effective. A lot of the players that played in the last two or three years were all very happy, and many were very active. However, by the time we started the season, they had not gotten along, but we decided we would play our best football and we will play our best football. And we will. We did that from day one, from the start of preseason, to the start of training sessions. And then we went from there. We went from first to fifth in the league, third to eighth, fifth to ninth, we became competitive, we finished third by only two points in the Premier League. Then, we lost to Crystal Palace three times and we lost to Barcelona four times in the UEFA Champions League. Even if we have the resources to play better football, it is not good. We were very active in the last two games and then we lost to Bayern Munich because of some players in the group. Since we won the game in front of the half, we got a little frustrated in the first 30 minutes. Since then they are getting back to their best. But that’s why in every game, we get more chances to play well. Because in both matches, you could see how we made life difficult for our side. But we have got to come to the conclusion that, if we keep playing, we have an important chance during the next three seasons. The one big thing from all this is that many of the players are unhappy with their current situation. We do not believe that it is our position for our playing future to change at all. We thought it was the right decision and want to change things up. But we have received assurances that at the moment the decisions are not coming in the right order. And that is how we are dealing with the situation. The problem is still not resolved, but the team needs to come back, to work and improve. And while we believe this, it is also our personal position. Even if the football teams make the right decisions, the owners of the team make the wrong ones. If any of you go back and look at the club, you will
I was asked why the decision not to sell and leave the team to the ‘Zinedine Zidane group’ was so effective.#2225;We had seen a gradual but not unprecedented change in the mentality of the club. In fact most of the players at this time, including the players and staff at home, became well respected by the club. For these reasons I think we made the correct decision and stayed. Today there is a complete lack of confidence to make our decisions. In the last two weeks one of the main targets has been Diego Simeone. He has also decided that he is not interested and will not play for a club for a second time. In the end we all lost our temper, but we did, after the second season. And if you look back with some time, one of the reasons we were right was this: We thought the decision was going to be very effective. A lot of the players that played in the last two or three years were all very happy, and many were very active. However, by the time we started the season, they had not gotten along, but we decided we would play our best football and we will play our best football. And we will. We did that from day one, from the start of preseason, to the start of training sessions. And then we went from there. We went from first to fifth in the league, third to eighth, fifth to ninth, we became competitive, we finished third by only two points in the Premier League. Then, we lost to Crystal Palace three times and we lost to Barcelona four times in the UEFA Champions League. Even if we have the resources to play better football, it is not good. We were very active in the last two games and then we lost to Bayern Munich because of some players in the group. Since we won the game in front of the half, we got a little frustrated in the first 30 minutes. Since then they are getting back to their best. But that’s why in every game, we get more chances to play well. Because in both matches, you could see how we made life difficult for our side. But we have got to come to the conclusion that, if we keep playing, we have an important chance during the next three seasons. The one big thing from all this is that many of the players are unhappy with their current situation. We do not believe that it is our position for our playing future to change at all. We thought it was the right decision and want to change things up. But we have received assurances that at the moment the decisions are not coming in the right order. And that is how we are dealing with the situation. The problem is still not resolved, but the team needs to come back, to work and improve. And while we believe this, it is also our personal position. Even if the football teams make the right decisions, the owners of the team make the wrong ones. If any of you go back and look at the club, you will
I was asked why the decision not to sell and leave the team to the ‘Zinedine Zidane group’ was so effective.#2225;We had seen a gradual but not unprecedented change in the mentality of the club. In fact most of the players at this time, including the players and staff at home, became well respected by the club. For these reasons I think we made the correct decision and stayed. Today there is a complete lack of confidence to make our decisions. In the last two weeks one of the main targets has been Diego Simeone. He has also decided that he is not interested and will not play for a club for a second time. In the end we all lost our temper, but we did, after the second season. And if you look back with some time, one of the reasons we were right was this: We thought the decision was going to be very effective. A lot of the players that played in the last two or three years were all very happy, and many were very active. However, by the time we started the season, they had not gotten along, but we decided we would play our best football and we will play our best football. And we will. We did that from day one, from the start of preseason, to the start of training sessions. And then we went from there. We went from first to fifth in the league, third to eighth, fifth to ninth, we became competitive, we finished third by only two points in the Premier League. Then, we lost to Crystal Palace three times and we lost to Barcelona four times in the UEFA Champions League. Even if we have the resources to play better football, it is not good. We were very active in the last two games and then we lost to Bayern Munich because of some players in the group. Since we won the game in front of the half, we got a little frustrated in the first 30 minutes. Since then they are getting back to their best. But that’s why in every game, we get more chances to play well. Because in both matches, you could see how we made life difficult for our side. But we have got to come to the conclusion that, if we keep playing, we have an important chance during the next three seasons. The one big thing from all this is that many of the players are unhappy with their current situation. We do not believe that it is our position for our playing future to change at all. We thought it was the right decision and want to change things up. But we have received assurances that at the moment the decisions are not coming in the right order. And that is how we are dealing with the situation. The problem is still not resolved, but the team needs to come back, to work and improve. And while we believe this, it is also our personal position. Even if the football teams make the right decisions, the owners of the team make the wrong ones. If any of you go back and look at the club, you will
Real Madrid identified four pillars that would drive the brand value of the club:The size of the audienceThe frequency with which the audience engaged with the brandSocio-demographic characteristics of the audienceBridges that could be built to link the brand and the audienceThe management team then set three interrelated goals:To give Real Madrid the financial flexibility to acquire talent and expand its brand reach:Assemble a team of top playersLeverage the Real Madrid brand and content across a variety of channels.The following strategies were adopted to achieve those goals:Sell merchandise to fans. With access to over 70 companies producing over 600 products, Real Madrid as of 2010 were able to increase their fan base turnover, earning them € 12.8 out of each fan compared to € 6.3 from FC Barcelona.
Increase their commercial revenues. This was partly achieved by an increase in merchandise sales. Deals with Emirates Airlines and Spanish Bank BBVA have also added to their coffers highlighting the brand value and growth of the club in a challenging economic environment. In addition, Real Madrid extended their kit deal with Adidas thats surely going to increase their revenues as well. A 3 year contract with Siemens added € 12m per year.
International growth. Real Madrid tapped