Editor’s note: This article was first published in September 2011. All figures are from 2011, including the Forbes valuations and revenues, Marca’s results to 30 June 2011, “the sixth year in a row” and José Mourinho as coach.
As we all know, football is a business, and one of the most profitable ones at that. And when it comes to business, Florentino Pérez, the club’s president, seems to know what he’s doing to generate the revenue that has made Real Madrid, for the sixth year in a row, the richest sports club in the world.
It doesn’t matter whether Real Madrid wins more or fewer titles than its arch-rival, Barcelona, a team that, despite having won more titles than Real Madrid lately, has had some debt problems so far. Barcelona does appear in second place in the Forbes ranking by revenue generated (361 million), but even so, it is not an example of good financial management.
According to Forbes magazine, Real Madrid is worth €1,022 million, with revenue of 396 million. Even though it brings in more than Manchester United (323 million), the English club is valued at €1,312 million, although Florentino plans to increase revenue in order to overtake Manchester United‘s value.
It won’t be easy: besides using his “negotiating” skills, Florentino will have to rely on “Mou” (coach José Mourinho) and push him hard to win titles.
As of 30 June 2011, Florentino Pérez and his board had achieved revenue of more than €450 million and a net profit of over €30 million, according to the sports daily Marca. Florentino has proven to be a real star at negotiating TV rights, marketing and advertising, since he is able to recoup the investment in an “expensive signing” in less than six months.
There’s no doubt that, outside Spain, the Real Madrid brand generates enthusiasm and admiration, whether for its style of play or for its “Galácticos”, but in the business world, the “Florentino brand” also earns our enormous admiration.
Featured image: Footballkickit at English Wikipedia, CC BY 3.0, via Wikimedia Commons.
