Real Madrid Essay

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REAL MADRID CLUB DE FUTBOL Business model transition in the 1990s from traditional to professional business model. Traditional : emphasize gate receipts and local corporate sponsor Professional : maximizing merchandizing, television revenues, and stock values on international basis Expenses | Revenues | Public Share Offer | * Fixed Cost * Talent Acquisition * Talent Retention * Build and maintain/leasing stadium | * Match day ticket * Sponsorship * Merchandising * TV Rights * Prize money | * Initially attractive to investor: high revenue forecast & operating profits. * Investor soon worried on expenses skyrocketing * A lot more volatile than mainstream companies | Real Madrid Fact: 1. History: 2. Real Madrid Transformation in the 2000s (Perez held Club Presidency): * Restructured as professional organization/Company as the club’s operations and marketing approach did not match its reputation in sport * Vision : to be the best soccer club in the world * Mission : to nurture and project the Real Madrid brand worldwide * Brand value drivers: * Size of audience * Frequency with which the audience engaged with the brand, as a measure of commitment * Sociodemographic characteristic of the audience * Bridges that could be built to link the brand and the audience * Interrelated goals: * Give Real Madrid the financial flexibility to acquire talent and expand its brand reach * Assemble a team of top players * Leverage the Real Madrid brand and content across a variety of channels * Strategy : * Gaining financial breathing space * Rezoning club’s old training pitches north of Madrid’s financial district * Recapturing exploitation right sold off to various operators and

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