...------------------------------------------------- Real Madrid – 1st Case Assignment The following answers are based on the case materials “Real Madrid Club de Futbol”, “Real Madrid Club de Futbol in 2007: Beyond the Galacticos” and the links in the footnotes. 1. What differentiates Real Madrid from other Soccer clubs? One thing that differentiates Real Madrid from other top soccer clubs is that Real Madrid is owned by its members while most other top club is owned by shareholders (investors). Another difference is that Real Madrid were quite early to realize the importance to serve as a marketing vehicle all over the world rather than just a soccer club compared many other soccer clubs. This was especially under the management of Perez Real Madrid as a brand and business got in focus. This meant that Real Madrid became a real business and that the management managed Real Madrid as a business rather than just a soccer club. The performance of Real Madrid as a soccer club is still key to the performance of the business though. 2. What provides the revenue stream from which the club benefits? About one fourth of the income in most top clubs is generated on match-day from such things as sponsorships, television rights and merchandising revenues. Revenue depends largely of the clubs participation and performance in major competitive events such as the European Champions League for instance. Below are listed four types of revenues the club generates and what it basically consists...
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...Real Madrid Football Club: A New Model of Business Organization for Sports Clubs in Spain World soccer clubs, constrained by their inability to increase their income from their traditional businesses, have begun to adopt strategies to transform themselves into modern sports and media companies. Under the recent presidency of Florentino Pérez, the Spanish football club Real Madrid presents a good example of the application of this expanded vision. One of the fundamental pillars of this model has involved designing and implementing a new marketing strategy aimed at strengthening the value of the club's brand. The adoption of this model has resulted in a significant increase in income from marketing. Undeniably, in this area, Real Madrid has become the leader in world soccer. © 2006 Wiley Periodicals, Inc. MIGUEL BLANCO CALLEJO AND FRANCISCO J AV I E R F O R C A D E L L America. The key aspect of this conception resides in the idea that sports clubs can behave as brands, and the essential principle is to exploit the sponsorship plan and sale of products, together with the commercialization and sale of audio-visual and television rights of sporting events. In soccer, Manchester United in the United Kingdom was the pioneer in commercially exploiting its brand on an international level, and this strategy was highly successful in the 1990s. During the early years of the 21st century, however, Real Madrid has gained the position of “commercial leadership” within the world soccer...
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...REAL MADRID CASE STUDY Summary Real Madrid is one of the most storied sports franchises in the world. It is one of the few sports teams with international appeal to a very broad fan base. This case delves into how Real Madrid transitioned from a good soccer team with a winning history into the global sports juggernaut we know today. We first examined Real Madrid’s revenue streams and found that from their inception through the 1970s their business model was based almost entirely on their ticket sales. After the 1970s up until 2003 they had some media rights, a small merchandising department, and some other negligible streams of income. It was in 2003 that team President Florintino Perez decided to make Real Madrid into a special type of sports team that was akin to large global corporations like Walt Disney. After reviewing the facts we agree with the decision to shift the business model into its current position (as of 2003). After identifying and examining the lifetime values of different consumer groups which are listed below under the “Question 2” headline, we have found that each group has different desires in order to be completely satisfied. However, each group has a common denominator that will maximize utility across all segments and that is winning. A winning team sells more merchandise, can demand higher advertising revenues, and can attract the best players for less money which also leads to winning more often. We also quantified two types of consumers...
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...Real Madrid Club de Futbol Real Madrid Club de Futbol Case Study by Kurt Eschbacher Abstract The case study is about one of the best known and best playing soccer team in the world, Real Madrid. It tries to backlight the myth of soccer and the tremendous merchandising system behind soccer. Especially the era of Florentino Pérez, who brought a new dimension in managing and merchandising soccer clubs to Spain, will be analyzed in detail. soccer The game What makes a team like Real Madrid so interesting for sponsors and fans worldwide? What makes soccer so interesting for us? Soccer is the world’s most popular sport. Nearly every child kicked a soccer ball once in his live. More than 240 million people play at least once a week. Such a big sport needs a big parent organization in its background. This job is done by the Fédération Internationale de Football Association (FIFA). The FIFA which was founded 1904 in Paris established a unified set of rules. This rules are easy to understand and are of course one of the reasons why soccer is so popular all over the world. Also the time a soccer game lasts is defined by the FIFA, its two halves of 45 minutes split by a 15 minute brake. In elimination games an overtime of two times 15 minutes and also a penalty shoot-out at the end of overtime is possible. This is a big advantage for sponsors and TV broadcasts compared to other sports like American football or boxing...
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...Atletico de Madrid Case Analysis On May 2000, Club Atletico de Madrid were relegated to Second Division for the first time in its history. It was a game which reflected the season for ATM. The last minute penalty miss by the player who had not missed one whole season showed what destiny had in store for the club. It was for ATM a totally, new and not so good experience. It triggered the crises that was to follow. In hindsight, this should’ve never happened and before the season began fans expected and hoped that 99-2000 season will rather be one of the best. There was a good 54 million budget. It was a season that was ought to be good but, as the “hard luck club” were facing some serious wrath now. Fans who have never seen the team go down to second division had a low morale. The financial implications of going down to Second Division loomed large on the ATM. The communication and marketing department concerns had deepened. Just as the result were unexpected as compared to the beginning of the season so was ATM marketing department was getting ready for what they had never experienced. In Spanish football, ATM was third largest club in almost all the respect. What differentiated ATM from their biggest local rivals Real Madrid, who were hugely successful was the fan base. Not in terms of numbers but in the way they connected to the club and their spirit. Nobody really knew what relegation will bring to the club. Diagnosis There were many implications of the relegation of...
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...Real Madrid Summary Company: Real Madrid Strategy: 1. “Professionalize” the management team 2. Exploit the enormous value of the Real Madrid brand and players’ images to increase revenues. 3. Impose financial discipline to ensure that the team did not become overextended. Key to this discipline was limiting the players’ expense. With the new strategy of Zidanes & Pavones, Real Madrid would sign one star player per year and focus on the development of players through the farm system or cantera. Issues: 1. On the brink of bankruptcy. 1990’s Crisis: (Growth in revenues from TV rights; Greater investment of private personal fortunes; free-agent market) 2. Clean the debt by selling a training ground 3. Key to transformation would be modernization of its management. * Restructured the organization into four main units. * Implementing a variable pay structure. 4. Leveraging the Brand * Widen the scope of the brand by targeting international markets * New code of conduct promoted the values of honesty, transparency, and concurrence. * Three ways to exploit the brand:1. Sponsorship, image rights, advertising; distribution, merchandising, and licensing; and internationalization and new technologies. * Zidanes & Pavones 5. The Budgetary Process * Annual plan& midterm plan * Guidance of the strategic objectives and the assumptions provided by the corporate manager. * Revenue: Real Madrid transformed some areas...
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...willing to acquire the branded item by paying premium as compared to another item with same identical function. For instance people are willing to premium price for a Gucci handbag when a cheaper alternative is readily available at a much lower price. Brand Equity in Sports Industry: In modern era, Sports have become a huge profit making industry. Brand equity is vitally important tool for the sports clubs now. Sports clubs are now employing to brand management strategies to increase revenues and provide more entertainment to their fan base. The biggest sports industry in the world is European football (soccer) which has numerous clubs in the leagues that have long term strategic brand management as the overriding philosophy for their marketing efforts. A long term focus on brand management strategies is warranted given the volatility of success in team sports. In the past, below par revenue accumulation has been a mjor concern for consistent success in team sports. This led to clubs resolving to short term tactics such as selling as their best players after a couple of seasons to get rid of their loans or firing their managers. These short term measures however did not make the clubs financially strong and after couple of goods seasons, the club would plunge into debt crisis. A conceptual framework for...
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...Samsung Galaxy 11- Football Will Save the Planet Xiaowei Lu Introduction Digital Marketing Nowadays, the first thing when you wake up in the morning, is probably to check your cellphone for texts, or to open Facebook page or other social network for new posts, or to browse internet or to turn on television for global latest news. Those online means of communication, information conveyance, and collaboration through internet connections of people, organisations, and communities supported by technological capability and mobility, are all social media (Tuten & Solomon, 2013). There are always two major different interactions in today’s social networks such as Facebook, twitter and youtube: synchronous interactions, which are interactions with immediate communications and responses such as texting live messages online with friends; asynchronous interactions, which are communications without instant replies such as posting photos and news online (Tuten & Solomon, 2013). Digital marketing focuses on generalising marketing campaigns through taking full advantage of digital social media, in other words, achieving marketing objectives by digital technologies, since in today’s society it is the most Immediate, direct and effective way of business promotion. Samsung Samsung Group is the largest multinational conglomerate company from south Korea founded in 1938, operating various subsidiaries and affiliated companies and business. One of the most remarkable subsidiaries under the Samsung...
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...over 200,000 Americans living in the UK even though the USA is not part of the EU and its migration laws. These people can move around easily as they have lots of spare cash that they can use easily to travel to where ever they want to go and set up a place to live there if they want to or can afford to stay in expensive hotels. These elite groups can move around easily as they are all highly skilled in their own professions meaning that countries would allow them in as there work could help to improve that country and their wealth could benefit the local economy. For example David Beckham played for Manchester United in England, after a very successful career in England for united and as England captain he moved to Spain to play for Real Madrid who did not hesitate to take him up on the offer of him playing for them as he would gain them lots of publicity thus earning them more money. He has later moved onto play in Italy and in America in LA where he now has acquired a high status there earning America a good reputation...
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...Boston Marathon, the European Rugby Cup and the upcoming IAAF World Championships in Moscow in 2013 For example, the 2012 London Olympic Games were an enormous global platform to showcase adidas. As official sponsor, adidas kitted out over 5,000 athletes, 11 National Olympic Committees and 21 national sporting federations. 30% of medals were won by athletes wearing adidas, amongst them gold medallists David Rudisha, Jessica Ennis, Andy Murray and the US women’s gymnastics team. * adidas had considerable success leveraging the event with the “Take the Stage” brand campaign, featuring athletes and ambassadors such as Yohan Blake & Laura Trott * In addition, adidas has an extensive roster of high-profile sports teams such as Real Madrid, AC Milan, Chelsea FC and FC Bayern Munich in football, the New Zealand All Blacks and France in rugby, American universities such as UCLA and Notre Dame, as well as high-profile individuals such as four-time FIFA...
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...PSG outlines multi-sport future Paris Saint-Germain (PSG) has signalled its intention to create a sporting empire modelled on FC Barcelona and Real Madrid in the latest demonstration of its growing ambition. The Ligue 1 giant on Tuesday announced the relaunch of the city’s handball team, which has existed in various forms since 1941 and has been associated with the club since the 1990s. The move is the initial phase of a bid to develop a multi-sport entity around the PSG brand, and could also see the launch of a basketball club. Barcelona and Real Madrid, along with a host of Europe’s leading clubs, have traditionally employed this model. “The idea is to rapidly create a large multi-sport club to promote the global project of Paris Saint-Germain,” said PSG director general Jean-Claude Blanc, according to Eurosport. “We will not stop at handball even if, for now, there is no specific list or timeframe of sports and deadlines.” The new strategy reflects the latest move by the club’s new owners in an era of great change. Qatar Sports Investment (QSI) in March acquired the remaining 30% stake in PSG in a deal that valued the club at Eur100 million. QSI had originally acquired a 70% stake from US investment firm Colony Capital in June 2011. Following the bitter disappointment of losing out on the 2011-12 Ligue 1 title to Montpellier on the final day of last season, QSI has signalled its intention to make an even stronger challenge at home and in Europe by embarking on a spending...
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...international attention during the 2010 FIFA World Cup and was nominated for the Golden Ball Award, which is awarded to the tournament's best player. Özil started his senior career at hometown club Schalke in the Bundesliga in 2006, transferred to Werder Bremen in 2008 and was signed by Real Madrid in August 2010 following his break-out performance at the FIFA World Cup with Germany. On transfer deadline day of summer 2013, he moved to Arsenal for a club-record fee of £42.5 million.[3][4][5][6] The transfer makes him the most expensive German football player of all time. Özil is acclaimed for his finesse and improvisation as an attacking midfielder. His style and ability for providing assists for his team-mates has been compared by former manager José Mourinho to that of Real Madrid legend Zinedine Zidane.[7] In 2011, Özil ranked first in assists in major European and domestic competitions with 25. In 2012, he ranked first in assists in La Liga with 17.[8][9] He was also one of the top assist providers in the 2010 FIFA World Cup and UEFA Euro 2012 with three in both tournaments. Contents [hide] 1 Club career 1.1 Gelsenkirchen and Rot-Weiss Essen 1.2 Schalke 04 1.3 Werder Bremen 1.4 Real Madrid 1.4.1 2010–11 season 1.4.2 2011–12 season 1.4.3 2012–13 season 1.5 Arsenal 1.5.1 2013–14 season 1.5.2 2014–15 season 2 International career 2.1 2010 FIFA World Cup 2.2 UEFA Euro 2012 2.3 2014 FIFA World Cup 3 Style of play 4 Outside football 4.1 Personal life 4.1.1 Charity ...
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...pronunciation: [kɾiʃ'tjɐnu ʁuˈnaɫdu], born 5 February 1985) is a Portuguese professional footballer who plays for Spanish club Real Madrid and the Portugal national team. He is a forward and serves as captain for Portugal. In 2008, he won his first Ballon d'Or and FIFA World Player of the Year awards. He then won the FIFA Ballon d'Or in 2013 and 2014. In 2015, Ronaldo scored his 500th senior career goal for club and country. Often ranked as the best player in the world, Ronaldo was named the best Portuguese player of all time by the Portuguese Football Federation, during its 100th anniversary celebrations in 2015. He is the only player to win four European Golden Shoe awards. One of the most marketable athletes in sport, in 2016 Forbes named Ronaldo the world's best paid athlete. In June 2016, ESPN ranked him the world's most famous athlete. Ronaldo began his club career playing for Sporting CP, before signing with Manchester United at age 18 in 2003. After winning his first trophy, the FA Cup, during his first season in England, he helped United win three successive Premier League titles, a UEFA Champions League title, and a FIFA Club World Cup. By age 23, he had received Ballon d'Or and FIFA World Player of the Year nominations. He was the subject of the most expensive association football transfer when he moved from Manchester United to Real Madrid in 2009 in a transfer worth €94 million ($132 million). In Spain, he has since won one La Liga title, two Copas del Rey, two Champions...
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...Data Analysis Assignment The World’s Highest-Paid Athletes Been a athlete nowadays as become a real business where this people could make a lot of money, only showing their image and skills in newspapers, TV shows, TV commercials and others types of social media. I like this list of the “The world highest-paid players”, for the fact that we can see how many different players from different sports make a lot of money. Soccer, football, basketball and baseball are the sports that have more players in the list with 2 of them in the top, but the biggest profits are for the boxers. A big example of this is the upcoming fight of box between Mayweather and pacquiao, a fight that have involve million of dollars where many personalities of the business and not business world might bet thousands of dollars. Paper view, TV stream and others options are an example on how people will be able to see the fight of the century. It is very interesting how this people a lot of money with their skills and image. As a big fan of Real Madrid (soccer club) I really got in shock, for the fact that the start of the team Cristiano Ronaldo makes a lot of money per year. We all should think what they do for their money, because is a lot. Some of this people came from a very poor family and for the fact some of they have some organization that help people with skill in some sport to development and become a start in the sport that they play. This list also reflects how big as become been an athlete and...
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...national team and Spanish club, FC Barcelona (Brach). The latter is a Portuguese, who plays for his national team and another Spanish club, Real Madrid C.F (Mitra). Ronaldo used to play in England for Manchester United before moving to Real Madrid. At that time the two weren’t compared to each other much. Messi was regarded as a huge young prospect who had a lot of potential to become a super star in the future, coming from Barca’s youth academy “La Masia” (Levinsky), while Ronaldo was an already established star in an amazing Man United squad, winning the prestigious Ballon D’ Or award in 2008, which is an award that recognizes a player as the best in the world for that particular year. It was the year 2009 that sparked the rivalry between the two when a Messi inspired Barcelona team defeated Ronaldo’s Man United team 2-0 in the final of the Champions League, the largest club competition in the world. It was that year, Ronaldo moved to the capital of Spain; Madrid to join Real Madrid, Barcelona’s arch rivals. Later that year Messi won the Ballon D’ or and announced himself on the big stage as the world’s current best player (The Telegraph). Two of the best players, playing for two-world class teams, in the same league and were guaranteed to face each other at least two times a season. This was a start of an era and a rivalry. Even though Barca and Real have been locking horns since the 1900s, the match is famously known as the “El-Classico”, but the arrival of...
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