Real Madrid has a long and impressive history in football. Aside from being among the wealthiest clubs in the world, the club has also been very competitive. Its success can be linked to several factors where the management of the club treats football as a game, sport, and business. As a sport, supporters who attend the games that the club’s stadium holds are entertained through the talents of both the players and coaches.

Due to being competitive in the leagues in which they participate such as the Spanish League and the Champions League, it has maintained these supporters. Therefore, its reputation through winning games and trophies has lured many football lovers to be their supporters, and this pushes the club to perform better. As a business, Real Madrid treats these supporters not just as football fans but also as customers who buy tickets to attend the club’s matches with the money getting into the club’s revenue.

According to Elberse and Quelch (2007), they also earn revenue through selling branded goods like caps, watches, mugs or even soccer jerseys. Getting sponsorship from major organizations such as Nike and having television rights revenues also contribute to the club’s financial success. This financial strength justifies and sustains buying best players in the world who help in competing with other clubs hence maintaining the club’s success.

This success, though threatened by competition from other top clubs like Manchester United on the basis of financial and tactical terms, is currently stable. The club is still regarded as the best in the world, and if it continues to attract more players and winning more important matches through good management, it will sustain this success even in future.

Perez should run again for the presidential position of the club because since he took over in 2000, the club has been more successful. It has managed to pay high transfer fees for the best and talented players in the world in recent times. Gil and Manuel (2012) explains that the club has also won luxurious trophies including two Champions’ League trophies and five La Liga cups under him.

However, to sustain the success nature of the club, he should focus on competing with any other top club that has similar ambitions of becoming the best club in the world. He should work towards the vision that he promised the club before his election of making Real Madrid financially flexible so that it can attract talented people and enhance the relationship between the club and its supporters.

To do this, the president should utilize his entrepreneurial skills and political experience that are essential in making the club even more successful in future. He should also work hand in hand with the executive team and the club’s staff to realize the club’s vision. President Perez has these skills given that he was managing the ACS Construction Company, one of the aspects that led to his election.

The club also has an experienced executive team that will help the president attain the club’s expectations. Elberse and Quelch (2007) notes that this executive team is comprised of people who had worked with Perez before thus through the years have had a good relationship. This means that they understand each other better and this aspect will help the club to be more successful. By this far, he has been able to rezone the old training grounds and recapture the exploitation rights that had previously been sold off. This is proof that he deserves to be reelected.

Football as a game and business is improving at a very high rate with new clubs and existing top clubs gaining more financial stability and thus influencing the market in terms of buying players, managers and getting better sponsorship. Clubs like Chelsea, which does not have a successful history, even attempted to lure top players and staff members away from Real Madrid since Roman Abramovich, a billionaire, purchased the club. This means that the changes in football can destabilize Real Madrid’s management and organization. If this talented personnel can leave the club, then it will affect its vision of maintaining its status as the best club in the world.

However, the club’s historical reputation that it has already established itself financially compared to the upcoming clubs can help in maintaining the players. This can be effected by the fact that there has been evidence of tycoons sponsoring these new clubs withdrawing their support leading them to collapse. Despite this, Real Madrid must adjust its strategies and tactics in its management to keep the best personnel and attract more to the club. I can recommend that the marketing department should refrain from exploiting its supporters through selling many products or hiking tickets’ prices and this will improve the club and supporters’ relationship.

The management should ensure that they balance between buying and selling players to maintain the club’s financial position. Since salaries and benefits are the main reason for players switching clubs, the management should improve players and coaches’ contracts depending on the nature of the market. The players should also feel free to communicate the problems that they face so that they can be addressed in time. This will maintain a conducive atmosphere in the club hence becoming easy to achieve more success.

References

Elberse, A., & Quelch, J. A. (2007). Real Madrid Club de Fútbol in 2007: Beyond the Galácticos.

 Gil, U., & Manuel, E. (2012). Structural Dynamics Analysis of Real Madrid Club de Futbol. Journal of Alternative Perspectives in the Social Sciences, 5(1).