Skip to main content

Real Madrid could bring in outside investors

Real Madrid are stepping up plans towards a radical change in their ownership structure — one that would allow external investors to purchase stakes in the club for the very first time.

Madrid have been owned by their socios (club members) since being founded in 1902 and any adjustments to that model would require them to approve it in a vote. Only three other clubs have the same structure in Spanish football — Athletic Club, Osasuna and Barcelona.

Madrid are the only club in world football to have recorded revenues over €1billion (£870million; $1.2bn), a total reached over the 2023-24 season according to a Deloitte report (€1.045.5bn was the exact figure).

Despite this, Madrid’s president, Florentino Perez, has spoken about how being owned by members holds them back in certain ways, especially when competing in the transfer market with rival clubs backed by billionaires or sovereign wealth funds.

Madrid’s president is now set to present new details and further plans to move towards these changes at the upcoming general assembly for 2025. No date has been set for the event, but it is expected to be held before the end of November.

One idea that has already been discussed internally would see Real Madrid being effectively split into two different entities — separating the football side from the business side. In this way, socios would still technically retain ownership, while investors would be invited to purchase shares in the club’s business operations.

The Bernabeu hierarchy are well aware of the value of their club. One source suggested Madrid could be worth as much as €10billion — the same as the Dallas Cowboys, the NFL’s most valuable franchise.

No matter what new model is chosen, any money raised from investors would go into the club: to strengthen the team, or go towards paying the Bernabeu redevelopment costs.

Comments

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...