Real Madrid Club or what is more commonly known as Real Madrid has been perpetually considered as a money maker through its many ways of doing business and generating profit. This professional football club in Madrid, Spain has been attributed, with each rich history, to be earning millions of euros in its operation. The Santiago Bernabeu Stadium itself has been giving a lot of income for the club through the sales from the tickets of every football game. Fans flock the stadium and they actually pay too little attention with how much they pay compared to the benefit of the satisfaction that they get for every game seen.
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One of the easiest ways in which they earn money is through their museum in which people pay in order to experience a tour and to be able to witness the rich history of their football club unfolding right before their eyes. For a die hard football fan of the team, the entrance fee to the museum can be assumed to be nothing compared to what you will see inside. Being the most valuable football brand inEuropeand being one of the best brands in the world, it is indeed worth throwing extra amount just to have a fair share of the Real Madrid experience.
Another way in which Real Madrid is earning money is through its players. The football players of the club are very well established and known in the global landscape of sports and advertising since they have actually become valuable brands themselves. A big part of their revenue can be attributed to the shirts and jerseys with their names which are selling like pancakes, especially for the fans. Not only through the shirts, they are also available through other items which can serve as an unforgettable memento of the club. For instance, David Beckham playing for Real Madrid has earned them a lot of euros especially considering the fact that Beckham is a global sports icon and that his brand value is very high. Every Beckham item being sold is a sure fire hit for the club to earn. RealMadridretains fifty percent of the image rights on every endorsement made by its players. In the case of Beckham, Real Madrid has the right to half of every earning from any endorsement made by the legendary and world-renowned football player. Like Beckham, Cristiano Ronaldo is also one of the major players of the club which is attributed to be a money maker. When Ronaldo was bought by Real Madrid from Manchester United, the club was then very much aware of how this deal will increase the value of their team and how they will generate more money in exchange for paying a huge amount just to acquire Ronaldo. Kaka being a member of the team is also another factor which will continue to increase the market value of Real Madrid and therefore would give the club more opportunities to generate more money.
Another way in which Real CMadrid is earning money is through advertisement. The football club’s stadium is full of ads from companies such as Coca Cola, Adidas, and Audi. The names of these companies scattered all over the club, and being attached on the uniforms of the players is money making machine for the company. They are paying Real Madrid a lot of money just to have the names of their brands associated on the name of the football club. From that way, the companies will benefit because during the game, the fanatics can be able to see the brands being advertised.
As a global brand name and a rich football club, Real Madrid is also an economic force more than just being a sports team. The prestige of the club itself coupled with acquiring some of the best players in the field of football are both contributory to the profit which the club has been generating. The company employs marketing strategies which will give them the pitch for both sports and business. The Santiago Bernabeu itself, serving as a venue for their game, can be already classified to be giving them passive income with every game. When the seats are taken, then the club is enjoying rocketing revenues. Their VIP areas balconies, which are sold at a higher price, are also giving them a lot of earnings. The Bernabeu has been also regarded as having a special magic which inspires visitors with the experience of the club.
The merchandising efforts of the club, particularly as far as the players are concerned, could be assumed as the greatest money maker. It allows them to earn through the use of the club’s brand and the popular image of their world-class football players.
1. If you were part of the management of Real Madrid, what other marketing efforts would you extend to improve the image of the brand and to generate more profit?
2. Beckham and Ronaldo are some of the players generating profit for Real Madrid. Do you think that Real Madrid is successful only because of the popularity of their players which increases the brand value of the football club?
3. What is the sustainable competitive edge of Real Madrid against its competitors?
4. It is said that what Real Madrid lacks is a global marketing strategy. How do you think such aspect can be improved?