Florentino Perez is considering a significant restructuring of Real Madrid’s private and socio(fan)-owned model. This strategic decision, crafted in collaboration with Key Capital Partners and Clifford Chance, is aimed at fortifying the club’s economic stability in the face of mounting challenges, according to a report from El Confidencial.
Purpose of the Initiative
The primary goal of a potential restructuring is to insulate Real Madrid from threats and restrictive measures imposed by regulatory bodies like La Liga and UEFA. As the landscape of football continues to evolve, the club has taken a proactive stance to safeguard its interests and maintain its prestigious standing in the sport.
Exploring New Structures
The proposed reforms under consideration include two distinct alternatives:
- Transitioning into a publicly traded corporation, capping market shares at 49.9% to ensure majority control remains internal (similar to Bundesliga Model).
- Maintaining the current fan-based ownership structure but with enhanced shareholder privileges to modernize governance without sacrificing tradition.
Regardless of the chosen path, Real Madrid is determined to implement strict controls over share transfers. This is to prevent any possibility of external entities, particularly from Middle Eastern states or large American corporations, gaining control over the club’s assets.
Motivation Behind the Changes
Recent maneuvers by La Liga and CVC Capital Partners, such as the controversial sale of 11% of broadcasting rights for a 50-year term, have prompted Real Madrid to reinforce its autonomy and keep what they feel is economically theirs to keep. This initiative is a strategic response to these perceived encroachments, aiming to protect the club’s interests amid rapidly changing industry dynamics.
Timeline for Implementation
Real Madrid is set to present this ownership restructuring proposal at the upcoming members’ assembly in the summer. The presentation will seek to align the club’s members with the vision of ensuring long-term prosperity and securing the club’s legacy, leveraging the collective support of nearly 100,000 fan-members. Florentino Perez (77) is likely running for his final term as President and wants to leave a lasting legacy that protects the club.
Conclusion
This proactive restructuring represents a significant pivot in Real Madrid’s approach to ownership and governance. By attempting to balance modernity with tradition, the club aims to secure its economic stability and maintain its integrity in what has become a new football landscape. The initiative not only aims to protect the club from financial uncertainties but also ensures that the control and legacy of Real Madrid remain in the hands of its fans and members, echoing the club’s storied heritage of democratic governance and fan involvement.