Real Madrid Club de FútbolMGMT 4943

October 12, 2015Olivia James

Table of Contents • Team overview and history

– Real Madrid C.F. team history– Team honors/overview

• Fan Report – Fan Base, unique fan culture– Rivalries

• Economic Impact– Real Madrid Foundation, source of economic support – Stadium Situation– Financial Reports, revenue

• Marketing– Recent team marketing initiatives– Ticket promotions– Public relations events

• Sponsorships– Team sponsorships, individual player sponsorships, sponsorship activations

• Web Page/Media– Website & social media analysis, ideas for improvement

• Summary– Future challenges/opportunities

• References

Real Madrid C.F.Team History •Originally known as Madrid Football Club•Established on March 6, 1902, by Juan Padrós and his elected board of directors •Under the current presidency of Florentino Pérez•First tournament proposed by Madrid was in honor of King Alfonso XIII, which is now known as the Copa de España

Team Honors•Real Madrid is highly recognized as a reference point in world soccer•During 2000-2001 season, named “best club of the 20th century” by FIFA•Other notable honors include 10 European Cup Championships, 2014 FIFA World Cup Champions, and 2 European Super Cups

Real Madrid C.F.Team Overview•Based in Madrid, Spain•Play at the Santiago Bernabéu Stadium, also located in Madrid•The team training facility, Ciudad Real Madrid, was opened in 2005 and is located six miles Northeast of the city center •Notable Real Madrid players include Cristiano Ronaldo, forward, and Gareth Bale, midfielder

Fan ReportFan Base•Real Madrid is the world’s largest sports club•A survey was done by Sport+Markt in the last decade that shows Real Madrid has the biggest potential global fan base•Fan base is highly recognized in Spain, but moving further from a domestic fan base to international•Team honors and success, along with the addition of star players are the key to building overseas fan bases for Real Madrid

El Clasico Rivalry•Barcelona is Real Madrid’s biggest rivalry•Cristiano Ronaldo and Lionel Messi highlight this rivalry •Arguably the greatest rivalry in sports history because the games are always so close•Spanish soccer fans have always known that King Alfonso XIII showed favoritism towards Real Madrid (he gave them the crown on the logo)

Economic Impact Real Madrid Foundation•Main way for Real Madrid to develop free training programs to spread social and cultural awareness in society, in Spain, and abroad•Uses its popularity in sport to promote values and education in ways of personal development, and encourages social integration to encourage cultural aspects linked to sports •Funded by different public authorities, generous donations, and sponsorship agreements•The Real Madrid Foundation provides sports activities, educational and cultural activities, social welfare activities, and institutional activities

Economic ImpactSantiago Bernabeu Stadium•Located in the heart of the capital city•Named after a legendary president of Real Madrid•Opened in 1947 and seats around 81,000 people•“come to the place where your dreams come true”•Stadium can hold conventions, work meetings, lectures, galas, and concerts•Has an available 4 restaurants, 10 club stores, and 17 different event spaces

Financial Reports/Revenue•Real Madrid is worth $3.3 B as of May of 2015, and had revenue of $746 M last year •In the 2014-15 year, their operating income was quoted at $170 M•Valuation Breakdown of revenue are shown in the pie chart•Because of Real Madrid’s growing popularity, commercial sales and live broadcasting games have been their primary source of revenue

Brand: $464 MMatch Day: $608 M

Broadcasting: $1,091 MCommercial: $1,100 M

MarketingClub Marketing Initiatives•Real Madrid is focusing on transforming followers and supporters into effective customers•Developing new lines of business to diversify and allocate more sources of revenue•Exclusively promoting the “Real Madrid” brand image to be positioned in strategic markets for more popularity

Official Supporter Card•Sign up for the International Madridista Card to use towards exclusive benefits, like a discount at the official club stores, on basketball tickets, and guided stadium tours•Card discounts can also go towards local business and companies in Madrid, like shopping, entertainment, and restaurants•Year round quiz contests and promotions for hospitality tickets and official Club gear•Annual Madrid trip promotional draw

Sponsorships

Global Sponsors•BWIN (Sports Betting)•Audi•Microsoft•EA Sports

Regional Sponsors•Coca-Cola•Nivea Men•Sanitas (Health and Well-Being)•Samsung

Main Club Sponsors•Adidas: Became a Real Madrid sponsor in 1998, extended deal in 2011, since then Adidas has managed to life Décima and the Club World Cup among other titles•Emirates: Has many ties with football clubs, became a Main Club Sponsor in 2013, previous two years they were Global Sponsors•IPIC (International Petroleum Investment Company): Partnered with Real Madrid at the start of the 2014-15 season to promote Real Madrid Schools and the Real Madrid Museum

Sponsorships Individual Player Endorsements•Cristiano Ronaldo is the world’s highest-paid soccer player•He is sponsored by Nike, Samsung, Tag Heuer, Fly Emirates, and Herbalife•Ronaldo also has a personal brand of underwear labeled CR7 that is endorsed by his Nike deal•Gareth Bale is the world’s sixth highest-paid soccer player•He is sponsored by Adidas, EA Sports, and Lucozade •Bale also signed a 3-year deal for BT Sport doing commentary

Sponsorship Activations•Adidas activated their sponsorship with Real Madrid by hosting a Real Madrid Experience •Audi gave brand new cars to every player on the Real Madrid first-team squad, and let the team compete in a recreational grand prix contest

Web Page/MediaAnalysis•All of Real Madrid’s accounts are verified with a checkmark•They focus on keeping the opening layouts the same, using similar images and captions•The website is very well organized and easy to follow throughout links/ different sections•Real Madrid Club Football and Basketball share the website, but you can tell that Football dominates the popularity and was the first sport within the club•Their Instagram has very clear pictures that are relevant to the team’s schedule and goals•The Facebook and Twitter accounts carry the Real Madrid theme using the same top photos and profile pictures•All of their websites send a very consistent message to the target audiences of each social media outlet

Real Madrid and Microsoft Cloud•Real Madrid started the Microsoft Cloud in order to connect more closely with their fans•Uses a fan engagement platform that collects data from every fan that posts about Real Madrid, clicks the links, or “checks-in” at the stadium •App that fans can access wherever they are, virtually access the stadium, and look at stats from recent games

Summary•Real Madrid is a highly respectable football club with deep roots and ties to Spain and all of its championship wins•The club generates a lot of revenue and income every year from memberships, donors with big pockets, and commercial deals and sales•Real Madrid has one of the largest fan bases in the world because of their history in sports culture and the star players they have acquired •With the huge endorsements the team is receiving, along with individual players, the level of popularity with Real Madrid will continue to rise •Real Madrid’s marketing initiatives have only made their local fan base stronger, and will continue to be successful in breeding repeat customers and clients

References •"Audi Leverages Its Real Madrid Partnership By Giving All First-Team Players Free Cars." RSS. Partnership Activation, 21 Oct. 2011. Web. 08 Oct. 2015. http://www.partnershipactivation.com/sportsbiz/2011/10/21/audi-leverages-its-real-madrid-partnership-by-giving-all-fir.html•"International Madridista Card Benefits| Supporters | Real Madrid CF." Real Madrid C.F. N.p., n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/fans/madridistas/international/discounts-benefits-promotions•"Juan Padrós and Julián Palacios Found Madrid (1900-1910) | Real Madrid CF." Real Madrid C.F. Real Madrid, n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/about-real-madrid/history/football/1900-1910-juan-padros-and-julian-palacios-found-madrid•"Real Madrid Claims Biggest Fan Base." Real Madrid Claims Biggest Fan Base. N.p., n.d. Web. 08 Oct. 2015. http://www.cabi.org/leisuretourism/news/5542•"Real Madrid Football Club: A New Model of Business Organization for Sports Clubs in Spain." ResearchGate. N.p., n.d. Web. 08 Oct. 2015.http://www.researchgate.net/publication/229478080_Real_Madrid_football_club_A_new_model_of_business_organization_for_sports_clubs_in_Spain•"Real Madrid." Forbes. Forbes Magazine, n.d. Web. 08 Oct. 2015. http://www.forbes.com/teams/real-madrid/•"Real Madrid Foundation | Real Madrid CF." Real Madrid C.F. Real Madrid, n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/about-real-madrid/foundation•"Real Madrid Honours: Trophies, Titles, Cups, and Championships | Real Madrid CF." Real Madrid C.F. Real Madrid, n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/about-real-madrid/honours/football•"Real Madrid Sponsors | Real Madrid CF." Real Madrid C.F. Real Madrid, n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/about-real-madrid/the-club/sponsors•Salvadore, Damon. "Real Madrid vs Barcelona: 5 Things You Didn't Know About the El Clasico Soccer Rivalry." Latin Post RSS. N.p., 18 Mar. 2015. Web. 08 Oct. 2015. http://www.latinpost.com/articles/43064/20150318/real-madrid-vs-barcelona-5-things-you-didnt-know-about-the-el-clasico-soccer-rivalry.htm•"Santiago Bernabéu Stadium | Real Madrid CF." Real Madrid C.F. Real Madrid, n.d. Web. 08 Oct. 2015. http://www.realmadrid.com/en/santiago-bernabeu-stadium•"The World's Highest-Paid Soccer Players." Forbes. Forbes Magazine, n.d. Web. 08 Oct. 2015. http://www.forbes.com/pictures/mlh45egml/no-1-cristiano-ronaldo-real-madrid/•"YPT Visits." YPT Visits. Youth Professional Training, n.d. Web. 08 Oct. 2015. http://www.yptusa.com/rmadrid_valdebebas.html