From Spanish Giants to Behemoths: How Private Investors Would Strengthen Real Madrid's Financial Superiority

Florentino Pérez, re-elected as president of Real Madrid Club de Fútbol (Real Madrid) on 19 January 2025, last year announced plans to propose a change in the current ownership structure. Real Madrid is currently one of the four remaining Spanish football clubs playing in LALIGA that is still 100% owned by members, as opposed to private investors. While it remains to be seen what structure Pérez will propose, it is likely that the club is considering converting into a corporation while remaining under fan control, and there is speculation that this could be achieved through a structure similar to the 50+1 German model.

Key Highlights
-- Real Madrid looks set to change its ownership structure, and this could involve a move towards the German 50+1 model, where investors are permitted within the shareholding structure, but fans still have a say in important decisions.
-- Clubs structured under the 50+1 rule strike a good balance between profitability, investing in their squads, and financial sustainability.
-- We believe that changing the club's ownership structure to a model that allows private investments could be positive for the Real Madrid's credit profile because of the impact on future revenue growth and financial sustainability.

Manuel Gutierrez, Vice President, Corporate Ratings said, "The impact of the highest-revenue European football club changing its ownership structure toward the German model would be transformative for the whole football ecosystem in Spain and would further enhance Real Madrid's financial advantage over its competitors, allowing the entrance of commercial shareholders in the structure while ensuring the objectives of the club and shareholders remain aligned. If proven successful, this movement could pave the way for other Spanish clubs in the hands of members, such as FC Barcelona, to mirror Real Madrid in order to remain competitive in one of the greatest rivalries in sports history."