Sports Marketing Real Madrid Case

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Real Madrid Football Club: A New Model of Business Organization for Sports Clubs in Spain
World soccer clubs, constrained by their inability to increase their income from their traditional businesses, have begun to adopt strategies to transform themselves into modern sports and media companies. Under the recent presidency of Florentino Pérez, the Spanish football club Real Madrid presents a good example of the application of this expanded vision. One of the fundamental pillars of this model has involved designing and implementing a new marketing strategy aimed at strengthening the value of the club's brand. The adoption of this model has resulted in a significant increase in income from marketing. Undeniably, in this area, Real Madrid has become the leader in world soccer. © 2006 Wiley Periodicals, Inc.

MIGUEL BLANCO CALLEJO AND FRANCISCO J AV I E R F O R C A D E L L

America. The key aspect of this conception resides in the idea that sports clubs can behave as brands, and the essential principle is to exploit the sponsorship plan and sale of products, together with the commercialization and sale of audio-visual and television rights of sporting events. In soccer, Manchester United in the United Kingdom was the pioneer in commercially exploiting its brand on an international level, and this strategy was highly successful in the 1990s. During the early years of the 21st century, however, Real Madrid has gained the position of “commercial leadership” within the world soccer market. Thus, during the 1990s, the soccer industry has been transformed into a new business reality that has transformed the sport, converting it into one of the most profitable entertainment and leisure businesses around the world. Szymanski, an economist specialized in the football industry, estimated that globally the soccer industry generates $170 billion per year. Indeed, this industry…...

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