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Football

The Worlds Most Popular Sport Ruled by FIFA World Cup has a cumulative audience of 28.8 billion viewer.

Olympic only reached 4 billion viewer SuperBowl only reached 750 million viewer

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Why Men Love Football?

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Because its a beautiful

Real Madrids Timeline

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Santiago Bernabeu Stadium Evolution

194 7 195 3

192 3

198 2

199 8

200 8

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The Near

Real Madrid Executive Team

Today a modern soccer club needs to have a professional organization that makes decision with the head 4/28/12 not the heart

Professional Soccer Club Management

In the 1990s European professional soccer transitioned from the traditional business model emphasizing gate receipt and local corporate sponsorship to a 4/28/12 strategy of

Manchester United is good at this

Manchester United Brand

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Profitability

A lot of Clubs went bankrupt because player wages 4/28/12outpaced revenue

Revenue Stream

Percentage for 2004-2005

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Match Day

Cost Structure

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Public Share Offers

In 1999, shares of 33 soccer club were listed in stock exchanges Top club were initially attractive because of high Soccer was a lot more volatile than for mainstream companies revenue forecast and the capitalization could drop and aoperating bad like stone after one profits season

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Professional Soccer in Spain

Over 10,000 soccer club Over 50% Spaniards soccer fans (72% men28% women) 60% soccer fans Real Madrid (70% men-30% women)

In Spain it is easier to change spouses, political party or religion than it is to change soccer club 4/28/12

Transforming the Real

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Financial Performance

16 M per year from rights 12 M per year (Siemens) from sponsorship 30 vehicles from Audi Marketing Revenue rise from 39 M in 2000-2001 to 83 M in 2003-2004

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Real Madrid Revenue

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Market Share Based on Popularity

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The Galacticos

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Players Country of Origin

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When Players Transfer they bring their fans with them

MANAGING THE BRAN AND CONTENT

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Attracting and retaining star

players .

Madrid studied Disneys

leveraging of the movie The Lion King to understand the models of successful content exploitation.

Madrid want to into customer. Real Madrid

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convert their fans

TV website

Real Madrid

Real Madrid Fan card:

its different with the core socio card.

The holders received a free Hala Madrid subscription, ticket preference, no-fee Visa credit card, and commercial discounts and from partner companies. this gives its

members feeling of

exclusivity

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EXPANDING INTERNATIONALLY

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Asia and US

is one of their target to expanding the Madrid brand internationally. Perez want to capture about 10% of the Chinese market for sports merchandise by 2013.

Their plans in Asia:

Football academic, fan clubs, specialty shops, restaurants, and caf.

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1.

Madrids plans at U.S :

Content development ( training videos, cartoon series, and highlight packages) Fan loyalty Development of intangible assets (lectures, football academic) Asset development (merchandising licensing and distribution)

2. 3.

4.

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REAL MADRIDS SECOND CENTURY

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The worrying things to Real Madrid

the age of the superstar, the limit of their contract at Real, and great players will cease to exist.

Real Madrid managers were wary of overexposure and excessive commercialization

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Expanding Internationally

Asian and US Tour

Sport Merchandise to the rest of the world Affiliation with local leagues Soccer Academies Partnership with major global brands Fan Clubs Specialty Shop 4/28/12

Galacticos Project
Competition

UEFA Champion League : 2000 and 2002 Spanish league : 2003

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Financial Marketing Revenue rise from 39 M in 2000-2001 to 83 M in 2003-2004 Fourth position Soccer Club in term of Income (2003) Brand Madrid remain top of the Real Number 1 Leading soccer club in League Deloitte Football Money 4 countries and 2 region for the fourth successive season (2010)

Real Madrid case Discussion

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What is the Real Madrid business model? Is it unique?

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What is the Real Madrid business model? Is it unique?

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Complementary Revenue Driver

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Why Real Madrid is one of the unique football club??

because it straight to the

heart and endless list of positive values: prestige, effort, majesty,

and leadership. Other values transmitted from father to sons included excellence, fair play, solidarity, and sense of sacrifice.
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Who are Real Madrids customers?

All soccer fans in Spain 21, 172,671 people (year 2003) Madridista 12,703,603 people Men : Women = 8,892,522 : 3,811,081
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Over 13 million customers registered in 2010 (www.bwin.com) Highest fan concentration occurred in north and northwest of Spain

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Other customers

Sponsor : Accounted for up to 15% of revenues Adidas, Pepsi and Telefonica

TV partner:

European pay-TV, Germanys Kirch and UKs ITV Digital

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How is the market segmented?

Classified by needs and expectations

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Grass roots

Socios abonados

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Cardholding members who paid their dues and had the right to go to the field player, got discounts on seats and a

Who has more power, Real Madrid or the players?

Real Madrid

Real Madrids Brand The Club Ranks #1 In terms of Popularity Real Madrid is Seriously Loaded Gentleman's agreement with other clubs Considered as the best place to have a professional football career

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What risks does Real Madrid face?

Playing a bad season despite being full of star players Players injury Over Exposure Pirated Merchandise Regeneration of the Galacticos is not easy
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THANK YOU
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