Who is The Owner of Real Madrid? Real Madrid, often referred to as the “Galacticos,” is not only one of the most successful football clubs in history but also one of the most valuable sports franchises globally.
When it comes to the identity of the true owner of Real Madrid Football Club, there have been a lot of questions raised and tossed into the air.
Real Madrid is the most valuable football team in the world, with an estimated value of $5.1 billion. They now boast 35 La Liga crowns and a record 14 UEFA Champions League trophies.
Real Madrid boasts the extraordinary distinction of becoming the first club to have 100 titles in all competitions throughout Europe’s top five leagues as of March 2023.
Despite all of these accomplishments, some supporters remain uncertain as to the team’s true owner. Is a royal family supporting Real Madrid? The group has a private owner. Or are fans its owners? or possibly a government-owned entity?
In this article, we will explore the intricate ownership structure of Real Madrid, shedding light on the key stakeholders and providing a comprehensive explanation of their roles.
The Sociedad Anónima Deportiva (SAD)
Real Madrid operates as a Sociedad Anónima Deportiva (SAD), which is a specific type of sports company in Spain.
The SAD model allows for the separation of the club’s sporting activities and its business operations.
Real Madrid SAD is responsible for managing the football team, while the business operations, including the management of assets and revenue generation, are handled by separate entities.
Real Madrid Club de Fútbol
Real Madrid Club de Fútbol, commonly known as Real Madrid CF, is the club’s official name. It represents the football team and is an integral part of the SAD structure.
The club is governed by a president, who is elected by the club’s members and holds the responsibility of overseeing the sporting activities of Real Madrid CF.
The Real Madrid Foundation
The Real Madrid Foundation is a philanthropic institution associated with the club. Its primary focus is on using sport to promote education and social development.
Although it is not directly involved in the ownership or management of Real Madrid CF, the foundation plays a vital role in the club’s outreach programs and community initiatives.
The Ownership Structure
Real Madrid’s ownership structure is unique and differs from the traditional model found in many other football clubs.
Rather than having a single majority owner, Real Madrid operates as a membership-based organization.
The club’s ownership is distributed among its socios, or members, who elect the president and have a say in major decisions through general assemblies.
Socios and the President
Real Madrid’s socios, who number in the thousands, play a crucial role in the club’s ownership and decision-making process.
They have the power to elect the president, who then assumes responsibility for managing the club’s affairs.
The president, in turn, appoints the board of directors to oversee various aspects of the club’s operations.
The Role of the Board of Directors
The board of directors consists of individuals who are responsible for managing Real Madrid’s day-to-day operations.
They handle matters related to finance, marketing, and strategic planning, among other aspects. The president, as the head of the board, holds significant influence in shaping the club’s direction.
Real Madrid as a Publicly Traded Company
In 2020, Real Madrid took a significant step by becoming a publicly traded company. This move allowed the club to generate capital by offering shares to investors.
However, the socios maintain control over the majority of the club’s shares, ensuring that they retain significant decision-making power.
Who Really Is the Owner of Real Madrid FC?
Real Madrid’s members, or socios, control the club’s ownership, unlike many other European teams. Socios, who are effectively the club’s shareholders, form the foundation of Real Madrid’s ownership structure.
These socios play a crucial part in the selection of the club’s president and the board of directors, among other decisions.
Socios have the ability to influence Real Madrid’s destiny as actual stakeholders thanks to their involvement and voting rights in significant club-related decisions. The socios are those who own shares in the club, making them eligible for membership and voting rights.
Real Madrid’s membership structure guarantees that it keeps a tight relationship with its supporters and enables socios to take an active role in club management.
The socios have a direct bearing on the direction and course of Real Madrid, making crucial strategic decisions as well as choosing the club’s leadership.
Membership as a socio comes with a range of privileges and benefits. Socios are eligible to vote in the club’s presidential elections, where they select the person who will rule over important decisions on behalf of the club’s members.
Additionally, socios often enjoy exclusive ticketing opportunities, preferential treatment for matches, and various club-related perks, fostering a sense of belonging and engagement among the members. Real Madrid’s socio-hierarchy is based on ownership of shares.
An individual’s standing and power inside the club increase according to the number of shares they own. Due to their higher shareholdings, this hierarchy produces a system where some socios have more influence over decision-making.
It’s crucial to remember that every socio, regardless of the amount of shares they own, has the right to speak up and vote on vital issues, guaranteeing a certain level of democratic representation inside the club.
The emphasis on socios and their active participation in club activities under the ownership model of Real Madrid has been a defining feature of the organization throughout its existence.
The supporters now truly feel invested in the club’s success because to this distinctive structure, which has helped them develop a strong sense of identification and devotion.
The Role Of The Real Madrid President
Many supporters think the current president of Real Madrid, Florentino Pérez, to be the team’s true owner, mistaking him to be the club’s owner. The most senior position at Real Madrid is that of president.
In addition to representing Real Madrid in official roles, they are in charge of establishing the vision and goals and presiding over discussions with interested parties, sponsors, and other clubs.
The club’s president represents the organization and is ultimately accountable for both its on- and off-field actions. The president’s use of influence in player transfer decisions is one of the main examples.
You cannot dispute the president’s power, and Real Madrid has a history of luring some of the best players in the world.
The president has influence in building the club, from spotting possible additions to negotiating contracts and obtaining moves. The president is crucial in management appointments in addition to player transfers.
They have the power to choose the team’s coaches and remove them from their positions. The president’s choice of a manager may have a significant impact on the performance and success of the team.
The president of Real Madrid oversees the club’s financial strategy, assuring sustainable growth and prudent resource management. Real Madrid operates on a budget.
To make financial choices that affect the club’s long-term viability, they collaborate closely with the board of directors and other important stakeholders. Real Madrid has had a number of presidents throughout the years, all of them have made positive contributions to the club’s history.
Real Madrid’s history under Santiago Bernabéu, who served as president from 1943 until 1978, was one of immense success both at home as well as internationally.
In his several terms as president, Florentino Pérez supported the Galácticos program and oversaw the signing of top players that propelled Real Madrid to new heights.
Vicente Calderón had a part in fostering the rivalry between Real Madrid and Atlético Madrid, despite being mostly affiliated with Atlético Madrid. Having said that, these presidents have had a lasting influence on the club’s identity and traditions in addition to helping Real Madrid succeed.
Conclusion: Who is The Owner of Real Madrid?
Understanding the ownership structure of Real Madrid provides valuable insights into the inner workings of one of football’s most iconic clubs.
By operating as a membership-based organization, with socios as key stakeholders, Real Madrid stands apart from many other clubs that have single majority owners.
The president and the board of directors, appointed by the socios, manage the club’s day-to-day operations and steer its direction.
This unique ownership model has played a significant role in shaping the history and success of Real Madrid, making it a truly exceptional institution in the footballing world.
Who is The Owner of Real Madrid? (Explained) – MLSbase.com