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The case analyze is about one of the better known and best playing soccer team on the globe, Real This town. It tries to backlight the myth of soccer and the tremendous merchandising program behind soccer. Especially the era of Florentino Pérez, who brought a brand new dimension in managing and merchandising sports clubs to Spain, will be analyzed in greater detail. SOCCER THE GAME
What makes a team like Real This town so interesting for benefactors and enthusiasts worldwide? The particular soccer thus interesting for all of us? Soccer is the world’s the majority of popular sport.
Nearly every kid kicked a soccer ball once in his live. A lot more than 240 , 000, 000 people enjoy at least once a week. Such a huge sport needs a big mother or father organization in its background. This kind of job is done by the FÉDÉRATION INTERNATIONALE SOBRE FOOTBALL CONNECTION (FIFA). The FIFA which has been founded 1904 in Paris, france established a unified group of rules. This rules are super easy to understand and are of course a primary reason why soccer is so popular all over the world.
Also the time a sports game lasts is identified by the FIFA, its two halves of 45 minutes split by a 15 minute brake pedal. In removal games a great overtime of two times a quarter-hour and also a penalty shoot-out by the end of overtime is possible.
This really is a big benefits for sponsors and TV contacts compared to additional sports like American sports or boxing where the moment for a game or fight is virtually unpredictable. You can have 12 rounds of barn-storming fight or maybe a knockout following 10 mere seconds. At soccer games they will calculate and time all their spots and broadcasting exactly. There is also the FIFA World championship which is the second largest worldwide sport event beside the Olympic Games. In 2002 the FIFA Universe championship had a cumulative viewers of twenty eight billion visitors over 25 match days. This big audience is another reason why sports is so interesting for beneficiaries. The Euro soccer can be organized by UEFA as well as its 52 countrywide associations. The UEFA Winners League is a mayor in season competition to find the best European golf clubs and the stage for clubs like Real Madrid and Manchester Usa. SOCCER THE BUSINESS
In the past door receipts had been the most important cash flow for a sports club, as well for experts. But in the 1990s a big change of business structure went through the professional soccer teams in Europe. In Europe the hosting club of a sports game receives all the door receipts. One other source of income can be local support. But the new merchandize version targets a worldwide audience. Manchester United one example is was able to designate 45 , 000, 000 supporters worldwide. Compared to the 6 million proponents in their very own country this is a totally new market with huge possibilities. To supply all different target sets of fans that they set up bass speaker brands like “Fred the Red” for the children selling T-shirt, balls and so on, “MUFC” for teenagers selling products with attributes of rebelliousness friendship. “Red Devil” targets adults and present taste of leadership and winning with their customers in a higher cost segment. One more very important system for sports fan is definitely the homepage with their favorite golf equipment. For example an individual can registered to manutd. com will spend about 1500€ for video games and advertising products in a lifetime. MONETARY BACKGROUND OF REAL MADRID
In Spain soccer is the most well-known sport. You will discover 620 500 active players playing in over ten thousand soccer clubs. Professional sports is prepared in forest national crews. Real This town and FC Barcelona would be the biggest night clubs. They received nearly two-thirds of the national championships. Sports is more than the game in Spain it’s a passion and if you support a team you support that for life-time. Because of these specifics soccer is such a big business in Spain. Genuine Madrid started in 1902 by a group of Spanish sports fans since Madrid Feet Ball Club. In the twenties the California king of The country granted it of Royal to the golf club Real This town was born. Santiago Bernabeu a former very renowned player started to be president of Real in 1943 and herald a brand new era. By selling fan-bonds this individual financed a massive stadium intended for 75000 people, the Bernabeu Stadium. Bernabeu spent plenty of money to get the best participant in the world to Madrid. The effect was a series European Glass titles.
Genuine became the very best known soccer team in the world. Following the dead of Bernabeu in 1978 there was a decline for almost two decades. The brand new club director Sanz started out a kind of a closing sale to raise capital. He distributed players, several core resources like media rights and stadium search rights. This individual also signed longtime contracts for VIP areas and sponsorship to actually bad circumstances. Another factor was the Bosman case in 1995 which leaded to a big transform at the European transfer industry. Real Madrid still put in nearly 85% of revenue for participant salary and transfer-fees. This kind of cost needed to be covered by the different income options. The 2000 revenue of Real Madrid was about €138 million and resulted from €42 mil match day time income, €45 broadcast and pay-TV fees, €39 , 000, 000 marketing income and about €19 million via international competition. On the opposite side presently there had been costs of €161 million. The result was a loss in €23 million. THE AGE PEREZ
In 2000 Florentino Pérez took over the supervision from Lorenzo Sanz. The club was competitive in soccer in financial straits. Perez was the first who have really acknowledged the potential of Reals popularity all over the globe. But the marketing and operational approach did not match the status in sporting activities. Mr Albornoz the managing director of finances and legal affairs mentioned a missing objective for the club as one of the problems in managing ACTUAL. The aim was to deal with the soccer club like a professional firm and make decisions based on facts rather than on thoughts. Perez updated Real This town based on his experiences in running a large Construction Company. The mission declaration was thought as being the best soccer club in the world.
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