How do Real Madrid continue to finance mega deals?

[mrlilywhite]

As a very disgruntled and very miffed Spurs fan, I have wondered how the hell do Madrid finance deals like the one for Ronaldo and the proposed mega deal for Bale, Couple that in with the fact that they can still out muscle ANYONE when signing the games superstars. What do they do that others can not, ie making money appear out of thin air. I understand that the likes of City, PSG , Chelsea and others have a massive transfer kitty to pay top money for players and we can see quite clearly how they do it, But Madrid do it without any outside understanding of where their finances come from.

In 2009 they spent a staggering 160m euros on just TWO players, Leading to Barcelona financial director to question where Perez got the Money and Perez said that he had 300m euro to spend and that he could recoup the funds through shirt sales....That is like 30 million shirts! So I would like to ask any one with any knowledge on Spanish football finances to shed some light on how they do it, Even more so now they are posturing that they could land Bale for any price (Zidane's words). The club are straddled with long term debt, They are under investigation from the EC over land issues and also could come under intense scrutiny from the FFP.

Surely something has to break on the Madrid ship, After all it seems that Spain's other top team are not in a good financial position compared to other seasons and they have been the more dominant of the two for a while now. It is disgusting to think also that the other clubs in Spain's top league are in dire straits financially, Whilst Madrid continue to print money for fun!!

This is a stark reminder to football fans that this once beautiful game is turning into man's worst invention....MONEY!

 

[Syn_13]

The same way Man Utd are allowed to continue to operate with masses of debts and be bought with borrowed money. They're above the law because they're a massive institution and will always generate money. If they were a Portsmouth sized club they'd have disappeared into the obscurity of the Spanish lower leagues a long time ago.

 

[RichieS]

Don't players have to sign all their commercial rights over to Real or something? I seem to recall that being a bone of contention for C. Ronaldo at some point. That'd be worth a huge amount of money to the club.

 

[nightgoat]

http://www.deloitte.com/view/en_GB/...tball-money-league/infographic-2013/index.htm

 

[haxman]

This is a stark reminder to football fans that this once beautiful game is turning into man's worst invention....MONEY!

Turning? Long since turned. It's not a sport any more, it's a business.

 

[RichieS]

http://www.deloitte.com/view/en_GB/...tball-money-league/infographic-2013/index.htm

That really makes the case for our new ground.

 

[pvg]

spanish teams are allowed to individually sell their TV rights. In the premier league the TV deal is collective and the money is more or less shared. This means the 2 top Spanish teams can earn much more.

 

[SteveH]

spanish teams are allowed to individually sell their TV rights. In the premier league the TV deal is collective and the money is more or less shared. This means the 2 top Spanish teams can earn much more.

Spot on -

This presupposes that people want to watch Barca and Real - the popularity of Spanish football is on the wane - big players leaving and the economy tanking. It like watching the SPL two years ago, let be honest who did. La liga has two matches a year worth watching now. I remember following the likes of Deportivo, Sevilla, Villarreal and Valencia with great interest over the past 20 years.
I'm afraid I no longer bother.

 

[absolute bobbins]

http://www.realmadrid.com/cs/Satell..._7%_more_than_in_the_previous_fiscal_year.htm

 

[Real_madyidd]

Spot on -

This presupposes that people want to watch Barca and Real - the popularity of Spanish football is on the wane - big players leaving and the economy tanking. It like watching the SPL two years ago, let be honest who did. La liga has two matches a year worth watching now. I remember following the likes of Deportivo, Sevilla, Villarreal and Valencia with great interest over the past 20 years.
I'm afraid I no longer bother.

I feel the same as you, but around the world they do show a lot of Spanish football.

The odd one for me is that Juventus are on in pretty much every country, I just can't see the appeal of them.

 

[Riandor]

I feel the same as you, but around the world they do show a lot of Spanish football.

The odd one for me is that Juventus are on in pretty much every country, I just can't see the appeal of them.

It's turning into Boxing... the rest of the Spanish league is being stripped to the point of non existence whilst RM & Barcelona are allowed to continue doing whatever they want. They will continue to do this and have meaningless matches against opposition they are set up to beat and people lap it up in the name of great football and entertainment.

It's a farce, there is no real competition, it's borderline a totally rigged set-up.
For me there is no glory in playing in Spain now, no matter what FIFA wants you to think.

 

[SteveH]

It's turning into Boxing... the rest of the Spanish league is being stripped to the point of non existence whilst RM & Barcelona are allowed to continue doing whatever they want. They will continue to do this and have meaningless matches against opposition they are set up to beat and people lap it up in the name of great football and entertainment.

It's a farce, there is no real competition, it's borderline a totally rigged set-up.
For me there is no glory in playing in Spain now, no matter what FIFA wants you to think.

The spanish league is a mess. But Germany, France and Italy are little better.

For all our moans a growns I still think the premiership is far better sport.

 

[Kendall]

I don't really see why banks (particularly Spanish ones who are in the shit) are continuing to finance them. Maybe they feel RM are too big to fail.

 

[gushayes11]

The bigger the signing, the more they make surely in some ways. Look at how many shirts the likes of Beckham, Zidane and maybe Bale will sell. It's the Spanish midfielder from Sociadad for 34m that makes little sense to me.

 

[Harry_Snatch]

I don't really see why banks (particularly Spanish ones who are in the shit) are continuing to finance them. Maybe they feel RM are too big to fail.

It's so wrong on so many levels when you look at the mess that country is in and how many small business could be started with the money they lend R! With no chance of getting it back!

 

[OmarsComing]

They are the Apex predator in the football jungle. Even on the verge of ruin, the spanish government bailed them out of trouble just like how the US/UK governments did with the banks during the world financial crisis of 2008.

Real Madrid = Male Lion

Tottenham Hotspur = Male Hyena

 

[ValenciaYid]

In todays Marca they had stats and graphics relating to all the big European leagues and their respective TV monies. In Spain, Real and Barca get 140m Euros each after them it goes to 42m euros for a few teams and then drops again. Compared to the other leagues, well it doesnt comapre, its so one sided its an insult to call it a competition......

 

[Syn_13]

In todays Marca they had stats and graphics relating to all the big European leagues and their respective TV monies. In Spain, Real and Barca get 140m Euros each after them it goes to 42m euros for a few teams and then drops again. Compared to the other leagues, well it doesnt comapre, its so one sided its an insult to call it a competition......

So basically it's just like the SPL then?

 

[ValenciaYid]

So basically it's just like the SPL then?

Similar I suppose but with sun and not a fried Mars bar in sight....

 

[jambreck]

The same way Man Utd are allowed to continue to operate with masses of debts and be bought with borrowed money. They're above the law because they're a massive institution and will always generate money. If they were a Portsmouth sized club they'd have disappeared into the obscurity of the Spanish lower leagues a long time ago.

Above the law? Not at all.

There is nothing illegal about a leveraged buyout.

Nor is there anything illegal or inherently wrong about accruing debt.

The reason why the likes of Portsmouth got into desperate trouble and plummeted down the leagues is that they accrued massive debts but were unable to service them. Their's was an unsustainable business plan.

Clubs like Man Utd and Real Madrid, by contrast, can accrue massive debts and comfortably service them.