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Real Madrid's Financial Competition with Manchester United and FC Barca

  Soccer is becoming such a large industry world-wide but specifically within Europe as clubs are seen to be more and more competitive in terms of wins/losses and also with the financial aspects. In the current 2016/2017 season the Deloitte Money Report shows how Spanish teams dominate and have dominated in the past with their high and consisting rankings on the Top 20 Money League list with the clubs such as FC Barcelona (2), Real Madrid (3), and Atlético Madrid (13). FC Barcelona is leading the Spanish clubs on the list, but that is a new placement as Real Madrid has moved down on the money list after leading it for more than a decade. The club is not in any financial distress as the revenue from all of their contracts and deals with investors keep them comfortably afloat. In a matter of fact, Real Madrid's annual revenue is consistently increasing which can been seen through their recent success with their main competition, FC Barcelona and Manchester United. Recently, Real Madrid obtained a huge win over Manchester United for the 2017 UEFA Super Cup and also their defeat over Barcelona in the first leg of the 2017 Supercopa de España.
               Real Madrid is seeing success on the field against their biggest competitors, but it is still not bringing the club enough revenue to compete with current financial powerhouses, FC Barcelona and Manchester United. This is due to FC Barcelona's massive increase in match attendance, new sponsorships, and mainly their new extremely lucrative commercial contract partnerships. Manchester United primary source of revenue is through big commercial contracts and their Adidas and General Motors profitably sizable sponsorship deals. Aside from the teams success on the fields and their stats, a fùtbol clubs main prosperity is seen through their ability to earn large revenues which overall benefits all aspects of a club.

In what ways do you think Real Madrid can regain the leading spot and financially compete its main contenders in the up coming 2018 Money League? and do you think there will eventually be a salary cap on the massive commercial and advertising deals occurring in today's UEFA?

Sources:   https://moodle.iesabroad.org/pluginfile.php/1076503/mod_resource/content/1/Deloitte%20Money%20Report.pdf
https://za.as.com/za/2017/06/01/football/1496327691_003052.html

Comments

  1. El Blog de Ben Kuhn5 November 2017 at 15:36

    I believe that the solution to your question will be a tough one for Real Madrid. They continue to win championships yet they continue to lag behind FC Barcelona in finances. I believe that the solution to this is to fundamentally change the makeup of the team. I believe that the first thing I would do is to allow core players to transfer. To many, Real Madrid feels stale. An aging Christiano Ronaldo is leading the team in shots yet converting his shots at a rate of 2.08%. The core of Benzema, Bale, and Ramos is slowly becoming ineffective. They must be willing to bring youth talent and let their star players move on, while emphasizing their current outstanding young talen in Modrid, Casimiero, and Ascencio.

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    Replies
    1. Controversies in European Sports5 November 2017 at 16:07

      I agree with Ben, they need to change their team dynamic. By changing their team dynamic and bringing in new players to replace the older ones it will cause a raise in merchandise sales. Bring in new players from other parts of the world could help boost ticket sales from being able to connect with of the population. While the population of Madrid is predominantly Spanish, there is a large part that is English. WIth the recents talk to sign Harry Kane, this could be Real Madrid’s way to connect with their ENglish population and increase ticket sales.
      - Cory

      Delete
  2. Anonymous6 November 2017 at 07:22

    I think the already established "super clubs" like FC Barcelona and Real Madrid will be fine in terms of monetary issues going forward. They are among some of the most recognized brands on the planet and there are so many ways to commercialize their sheer size and success that other companies will continuously seek out partnerships with them. Not only does buying new players help increase their brand awareness, but I know they have been competing in tournaments across the US and Asia in their offseason, helping to establish more of an international presence.

    ReplyDelete
  3. Anonymous6 November 2017 at 07:40

    I think there will be a salary cap at some point put in place because the fans (a major financier of the players and clubs) are not going to be able to keep up and pay for their beloved futbol.

    ReplyDelete

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