Real Madrid's 'Galacticos' Strategy: Losing Steam? - ICMR Case Studies and Management Resources

Details

Case Code : CLBS072
Publication date : 2009
Subject : Business Strategy
Industry : Media & Entertainment
Length : 04 Pages
Price : Rs. 100

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Key words:

Real Madrid, the premier Spanish Football club had won two UEFA Championship Cup titles and two Spanish League cups on the strength of its Galacticos strategy. Though Real Madrid was ranked as the world richest football club in 2004-05, overtaking Manchester United, Florentino Perez (Perez), Real Madrid president, resigned due to the club poor performance in 2004 and 2005 football sports events. The new president Fernando Martin Alavrez has put pressure on the club star players like Ronaldo, Zidane, David Beckham, and Roberto Carlos to perform as a team.

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Abstract:

Real Madrid, the premier Spanish Football club had won two UEFA Championship Cup titles and two Spanish League cups on the strength of its Galacticos strategy. Though Real Madrid was ranked as the world richest football club in 2004-05, overtaking Manchester United, Florentino Perez (Perez), Real Madrid president, resigned due to the club poor performance in 2004 and 2005 football sports events. The new president Fernando Martin Alavrez has put pressure on the club star players like Ronaldo, Zidane, David Beckham, and Roberto Carlos to perform as a team.

Introduction

On February 16, 2006, a report by the consulting firm Deloitte titled 'The Football Money League' stated that the premier Spanish Football Club, Real Madrid Club de Fútbol (Real Madrid) had toppled Manchester United Football Club (Manchester United) to become the world's richest football club for the 2004-05 football season.

Real Madrid's revenues were £186.2 million when compared to Manchester United's revenues of £166.4 million for 2004-05. Manchester United had held the title as the world's richest football club in the world for eight consecutive years. Deloitte's rankings were purely based on the income generated by clubs in a season...

Real Madrid's 'Galacticos' Strategy: Losing Steam?*