Real Madrid Harvard Case

Topics: Real Madrid C.F., UEFA Champions League, La Liga Pages: 4 (1505 words) Published: June 7, 2011
Real Madrid (RM) has been worldwide-known as one of the best soccer club in the world. From its beginnings in 1902, this Spanish soccer club has set the standards of a championship soccer organization and in 1905 had his first international game. A major turning point in the club’s history came with Bernabeu, Real Madrid CF appointed president (1943).He created the strongest brand in soccer synonym of prestige and champions, wining 6 European Cups. He coined “best in Europe” by international press and acquiring the best soccer talent at any cost. Soon after his death in 1978, the club declined for nearly two decades on the field and financially. Through the 1990's under president Lorenzo Sans, Real Madrid CF was financially restructured. The organization constantly sold players and crucial core operating assets such as stadium rights and media rights to cover operating losses and minimize its significant debt. The club gradually recovered on the field, winning the 7th European Cup in 1998 and in 2000 Perez achieved the club presidency and announced his further plans in order to sanitize the club’s finances. The constant focus of Real is not on the traditional business model which emphasizes on gate receipts and local corporate sponsorships. The main goals of the club include giving Real Madrid the financial flexibility to acquire Talent and expand its brand reach. This could establish the brand globally and maintain supremacy of this brand with continuing to maximize profits and enhance their corporation. They are led to focus on a strategy of maximizing merchandizing and television revenues and in some cases stock values, on an international basis. This business model is not unique as Manchester United and Disney’s Lion King have already adopted it. Manchester United was of course main inspiration because it is master of this new globalization and commercialization model with million supporters worldwide. They have developed subbrands and products targeted to...
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