Real Madrid’s new ownership plan divides fans at world’s richest club
The World’s Richest Club
Real Madrid is one of the most famous clubs in the world. It is also the richest club in football. It has won more big trophies than almost anyone. The club has a long, successful history.
But now, the club is facing a big question. This question is about who should own the club. The club’s president, Florentino Perez, has a new idea. This idea is dividing the club’s fans. It is making people choose between money and tradition.
The club has always owned by its members. These members have called socios. They vote on important decisions. They elect the president. Real Madrid
Mr. Perez wants to change this. He wants to let outside investors buy a small part of the club. This change is historic. It has never happened before. Real Madrid
The Real Madrid Way: Members Own the Club Real Madrid
Real Madrid has founded a very long time ago, in 1902. Since that time, the club has had one type of owner: the socios.
This is a very special way to run a club. It means that about $100,000$ fans technically own the club. These fans pay a small yearly fee. They get to vote on the club’s big decisions. This has often called the member-owned model.
Only a few big Spanish clubs still use this model. FC Barcelona is another one. This model is important to the club’s identity. It means the club has controlled by the fans, not a single rich person or a large company. Real Madrid
The current president, Florentino Perez, has elected by these socios. He works for them. He does not own the club himself. This is the Real Madrid tradition. Real Madrid
The New Plan: Selling a Small Piece
Mr. Perez says the club must change to stay the best. He says the club needs more financial power. This is because other top clubs have rich owners. Clubs like Manchester City and Paris Saint-Germain have owned by large, wealthy states or billionaires.
The proposed plan is complex. Mr. Perez wants to create a new company inside the club. This company would handle some of the club’s business. Then, the club would sell a minority stake in this new company.
- How much? The plan is to sell a very small amount. It would be between $5$ and $10$ percent of the club’s business value.
- Who keeps control? Mr. Perez promises that the socios will always keep control. He says the investors will not get voting rights. The members will still be the absolute owners of the football club.
- Why do this? The main goal is to raise money. This money would help the club grow. It would also help the club understand its true value. Mr. Perez says it will help “protect the club” from outside attacks.
This plan needs to be approved. The socios must vote on it in a special meeting.
Why Fans have Divided: The Two Sides of the Coin Real Madrid
The new plan has split the fan base. Some fans agree with Mr. Perez. They say the club must change with the times. Other fans are very angry. They say the club is selling its soul.
Why Fans Say YES (The Money Side)
These fans believe the club needs new money to stay strong. They have a few main reasons:
- To Sign Big Players: The transfer market is very expensive. The biggest stars cost hundreds of millions of euros. Clubs with rich owners can spend money very easily. Real Madrid needs outside money to compete for the very best players.
- To Pay for the Stadium: The club has spent a massive amount of money to renovate the Santiago Bernabéu stadium. The cost has nearly doubled. The renovation is huge. It will let the club host concerts and events. But the club has high debt from this project. Selling a small stake would bring in needed cash.
- To Pay the Members: The current Spanish law does not let the club pay money (dividends) to the socios. By creating a new company, Mr. Perez says they could give financial benefits to the long-time club members.
Why Fans Say NO (The Tradition Side)
These fans are against the plan. They believe the tradition of member-owned has more important than money.
- Losing Control: Even a $5\%$ stake is a big change. These fans worry that a small door will open a big problem later. They fear that over time, the investors will want more control. The club could become like other clubs that have run just for profit.
- Against the Club’s Soul: Real Madrid has built on the idea that it belongs to the working people. It belongs to the city. These fans see the socio model as special and pure. They fear that bringing in private equity firms will ruin the club’s spirit.
- Attacks from the Outside: Some fans worry about who the new investors might be. The fear is that the club could attract investors who do not share the club’s values. They fear that the club’s long-term decisions would made by business people, not football people.
What Does “Minority Stake” Really Mean? Real Madrid
Mr. Perez says that the investors would only get a “minority share.” This is the key point for him. It means the socios will still own the vast majority of the club.
He says the investors will not be able to vote on who is president. They will not vote on big sporting choices. Their money is for the business side of the club.
But even without a vote, investors have power. They can ask questions. They can demand financial reports. If the club does something they dislike, they can cause problems. They can try to hurt the club’s image. They can pressure the leadership.
The fear is that the club will start to make choices that are better for the investors’ money, not for the fans’ love of the game.
The Long-Term Danger
The problem is not just about the next few years. It is about the next fifty years.
In other countries, like England, most clubs are owned by large, rich groups. This makes the competition very high. Mr. Perez says Real Madrid must find ways to raise capital quickly. He says the club is being held back by its old-fashioned ways.
Fans who are against the plan see the future danger. If the club needs more money later, it will be easier to sell a $20\%$ stake. Then a $30\%$ stake. Over many years, the club could slowly lose its identity. It could become just another business run for profit.
The vote by the socios will be a choice about tradition. It is a choice about the future of football. They must decide if the club needs outside help to stay at the top of the world. They must decide if the price of success is worth selling even a small part of their ownership.
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