July 14, 2024

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Florentino Pérez, the genius who created the New Galaxy in Madrid

Florentino Pérez, the genius who created the New Galaxy in Madrid

These were not only Florentino Pérez’s sporting successes at the helm of Real Madrid, but also economic dominance that allowed his club to dominate other established brands in the world of sports.

With the Spanish League and Champions League wins in recent weeks, Florentino Pérez has become the most successful president in Real Madrid’s history, with 35 titles to his name. Santiago Bernabéu himself, after whom the club’s stadium is named, bagged 33 goals during his long tenure as president. In addition, Pérez can boast a new title in another field: Real Madrid is the football team with the most economic value in the world.

According to Forbes, Madrid’s brand value is worth $6.6 billion, surpassing Manchester United’s $6.55 billion and Barcelona’s $5.6 billion.

In addition, Real Madrid reportedly made $873 million in profits during 2023, more than any other club on the list. These are the numbers that ensure Meringue’s success doesn’t just happen on the field, but off it.

During his two terms as President of Real Madrid, Florentino Pérez succeeded in positioning Real Madrid at the top of both categories, by implementing different growth strategies, some of which are detailed below.

The new era of galaxies

Kylian Mbappé joins Jude Bellingham, Vinicius Junior and Rodrigo as the new Galacticos who will seek to give the team an unprecedented luxury: a 16th Champions League title next season, as well as continuing the dominance of Spanish football against a Barcelona that is seeking to reinvent itself. Under the leadership of Hansi Flick.

Although the signing of Mbappé has been one of the most talked about topics in world football over the past twelve months, the fact that it happened without Real Madrid having to pay a single euro for his letter is impressive, especially considering . Florentino offered Paris Saint-Germain 200 million euros just one year ago.

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Yes, Bellingham cost the club 130 million euros, while Vinicius joined the team for 45 million. But today, both have immeasurable value to Real Madrid and Perez, considering the success they have helped the team achieve during the current phase.

With the departure of players such as Toni Kroos, and perhaps Luka Modric and Nacho, the Whites will be able to save tens of millions in salaries that they will be able to reinvest in Mbappe and other elements that arrive.

Unlike the first two waves of Galacticos, which took place during the 2000s, Real Madrid have been able to alternate between deficits and surplus periods in the transfer market. Between 2020 and 2023, there were more than €167 million in profits through the sale of players, according to Transfermarkt, which has prepared them to bring in Bellingham and Mbappe in the last two summers.

The strategy of bringing in younger players (Bellingham is 20, Vinicius is 24 in July, Mbappe is 25) in this era of Galacticos also represents an economic benefit for Florentino, as well as a footballing benefit, because it is much more than Possibility to consider Keep in mind that the current group of players will likely be together longer than the original group of Galacticos.

In the first phase of his presidency, the figures Florentino brought to Real Madrid were mostly close to 30 years old when they arrived at Chamartín: Luís Figo (27), Zinedine Zidane (29), Ronaldo Nazario (26) and David Beckham (27). 28) Between 2000 and 2005, the team won a total of two leagues, two Spanish Super Cups, one Champions League, and one European Super Cup. At the cost of hundreds of millions of euros to sign all four, only Ronaldo left the club, leaving something in Real Madrid’s coffers – a €7.5 million sale to Milan.

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Next for Pérez, younger players arrived such as Cristiano Ronaldo (24), Thibaut Courtois (26), Karim Benzema (21) and Gareth Bale (24). There is no doubt that this strategy was more profitable from a football and economic point of view. In his second time at the helm of Real Madrid, Florentino won six Champions League titles, five league championships, five Club World Cups and three Copa del Rey, among other honours, as the second and third generations of Galacticos surpassed the achievements of the first edition.

King of sponsorships

During last season, Real Madrid had 27 brands sponsoring the team, according to Sportcal. But the big five companies – Adidas, Emirates, BMW, Onicaja and Sanitas – were responsible for 84% of profits in this area. Adidas, which serves as the official white kit brand, pays the club approximately $143 million annually. The German brand is under contract with the club until 2028, so it will pay more than $1.2 billion to the team until then, according to the New York Times.

These numbers allowed Florentino and Real Madrid to exceed pre-pandemic numbers, for the first time, in terms of profits during the 2022-23 season. This year, the profits have been greater – next season, with Mbappé emerging as a new star, there is expected to be greater commercial interest from brands.

The new Santiago Bernabéu

As if that were not enough, the redesign of Real Madrid’s stadium, which has been carried out in recent seasons, will also leave a purely positive asset for the club headed by Florentino Pérez. The Madrid president made his fortune in the construction sector, so renovating the team’s iconic property to also be a hub for economic growth was a priority.

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Upon completion of this renovation, Pérez boasted of improving the amenities inside the stadium to better enjoy the football experience, such as a 360-degree screen around the stadium, in the style of some NFL buildings in the United States, and an expansion to the side that accommodates another 3,000 fans.

In addition, the new retractable roof – also inspired by many stadiums in the United States – allows events to be held inside the stadium any day of the year, without being affected by the outside weather. The so-called “Skywalk 360” has also been created at the top of the stadium to be used at all times, regardless of whether there is a match or not, and to serve as the headquarters for two restaurants.

The continued use of the stadium for various events beyond football allows Real Madrid and its president to continue to bill at all times. In the face of a changing world of sport, where clubs like Paris Saint-Germain, Manchester City, Newcastle and others are now owned by international nations with practically unlimited money to invest in their teams and infrastructure, the Merengue club continues to put itself ahead of the curve – largely thanks to what it has done. His boss.