assiment two 2 last d

The revolution in European soccer market 1

The revolution in European soccer market

Muaath B Albadin

University of North Carolina at Charlotte


Introduction/ Background:

Watching soccer is very popular in my country, but that does not mean that we

have a good league comparing to European leagues. When I was young my elder brother

was a fan for a local team called Alhilal and this team is one of top five. I stated to watch

their games with my brother and I loved the team. In 2003 my father brought for us a

card that you put in the T.V Receivers, which was allowing to us to watch soccer games in

different part in the world. At the time we used to hear about team that called Real

Madrid and my brother was interested to know about that team. In that time I used to

watch Alhilal team in the stadium and at home I watched Real Madrid. During the time I

became a fan of Real Madrid. What I liked in Real Madrid the amount of soccer stars that

were playing for it. As I was watching Real Madrid playing and I started to compare

between Alhilal and Real Madrid. The comparing was not fair because Real Madrid has

been considered one of the best team in the world since 1959 and Alhilal is good team

that wins the local league, but it was not the best in the world. I saw something in Real

Madrid games that I could not find it in Alhilal. For example, there is huge different

between the qualities of the players. When you watch big teams in Europe playing against

each other you notice that there is new formation and tactics, which are created by the

coaches of these teams. Also, in my local league there is lack of talented players sure

there are players who can play very well, but you cannot compare them with the players

who play in the European leagues. I have chose to watch Real Madrid games and I almost

stop watching the local league.


In this paper I investigate the ways that made Spanish clubs are able to generate

significant income, and how they attract fans to like them. More this paper shows the

relation in marketing managing and how effect on the profit of clubs. More likely I am

focusing in a soccer team, which is Real Madrid you might notice that I represent the

club as great example that made a revolution in the European soccer market. There were

things that inspire Real Madrid and I tried to mention them in this paper. However, I read

many articles about the business of soccer and I saw that the change was recently. I was

looking for the European teams incomes and I found a big different between 2000 and

2013. In 2000 the highest income was 217 million and British club that earn it, but in

2013 the highest income was 518 million and Real Madrid, this number broke a record.

This paper try to show how most of the team change the way that they look at their clubs,

even the fans have became more interested in the economic side of their clubs. If the club

has high income, that meant they can buy players with high qualities and skills. We used

to think that at end of each year people see how many titles the clubs had wan and the

economy experts are going to see how much the club had earn and how much they spend.

Now both the experts and the normal fan analyze the both sides and expect what the next

year going to be.

Literature Review:

Thinking that sports can change people lives is typical thoughts those kind of

thoughts that usually related to health and lifestyle. Sport can help people to change their


shapes and even the way people thinking. For example, sport can help the people to take

care of their health and make them think of their future. In these days sports have change

a lot and people considerer sports as a job in some cases. In my paper I focused on

practically in sport and on clubs economies, which made a big mark on the business of

soccer in Europe. Real Madrid is a soccer club that has spent over two billion dollar on

buying professional soccer players. Spending huge amount of money and making high

incomes during the pervious years. This made the club a great modern example in

managing and business in general. There are some terms that I am going to address hear

to make it more clear to you.

Terms:

Sponsorships : usually they are companies that support the professional teams and

sometimes they support a single game. For example, if it final game or friendly game. In

my paper I mentioned the sponsorships and how they made a change on the sports

business and on the clubs. T.V. rights: In the sports leagues the teams get paid from the

T.V. canals, because the teams has the rights of their appearances in the T.V. companies

try to be sponsorship for the clubs that has supporters. They try to market their products

and sometimes their services. I have an example for one of the biggest company in

Germany, which is Audi and it is one of the sponsor to Real Madrid team and each year

the company provides new cars for the player of the team and the some staff in the club.

You can see during the gamed the name of the company and sign in the stadium.


Ownership: these days there are a lot of companies around the world that invest in

professional teams in different sports. Some teams are owned by the cities, which means

no one can buy them. In the other hand, there are teams that owned by individuals or

companies. There are some reasons that force the professional team to change the time

from a soccer time to a company For example, lack of resources, which could affect on

the competition with other teams.

Real Madrid: it is a Spanish football (soccer) team and it is the richest club in the world.

A lot of economies see the club as the best modern club because of the management that

he it has and the high incomes that it makes over the past years. Real Madrid has

successful club in soccer it has the highest local and European titeals.

Florentino Perez: he is Spanish businessman and he is the president of Real Madrid

football club. He took over as president in 2000 for the first time and that was his first

term. He made the first highest transferred in the players transferring by buying Zinedine

Zidane who was the best soccer player on that time. The second term for him in 2009

until now and he has spent more than two billon and they called him the golden president.

Galácticos : it means the expensive, world-famous Real Madrid football players the

"galácticos" policy pursued during Florentino Perez presidency. Florentino has been

buying the most expensive players and the most famous players which made the club

very known for a lot of people in the world, and the Galacticos has two term which are

the same terms of Perez presidency . The first Galacticos was between 2000 and 2007 the

second since 2009 and until now. The most expensive player between all of them is


Cristiano Ronaldo and he coasted the club 94 million dollars. Many people think that the

Galacticos are spooling the transference marketing between the clubs. They clime that

Real Madrid raises the price of the players, but the president of Real Madrid said that the

clubs are asking for high number for the players.

The ownership and the effected of ownership on the economy:

When I started research about my figured world I had read before that no one

could buy my figured world. Ownership started in the U.S. Professional teams, which

have been owned by companies and individuals. During reading articles I learned that

there are two-mine ownership types in Spin and Europe teams. The first kind of

ownership is by companies and individuals. The second kind is members club. My

figured world is own by members club. The auteurs had said that there are positives and

negatives of ownerships and they gave example on the company ownership. They said

that the company could do what ever of the team and nobody could do anything that is

not right because still there are some rules. Most of the clubs that have bought by

companies or individual, the buyers try to change the club to the best. There are great

examples such as, Manchester city that owned by individual, Paris saint germain that

owned by a family.

The U.S examples:

The U.S professional teams have been great examples for a lot of sport teams

around the world. The writers have mentioned Florentino Perez who is the President of

Real Madrid club. Perez saw that the U.S professional teams have made their names and


teams as brands and that what he wanted his team to be. This idea means that the club can

make high income from the jerseys and other products. Real Madrid has strategies, which

have been put by Perez; he found that U.S teams could be good examples to mange the

club. Some writers see that the European business cannot be as good as the U.S

professional teams and they compere that by statistics. Some people said that Santiago

Bernabéu had came to the U.S and saw that people paid more money to watch the stars

play American football. So he came with the idea, which is buying the stars and from that

he got the idea. Also, Perez always talks about the inspiration that he got from Berabeu’s

term of presidency.

The effect of soccer on Europe and Spain in particularly:

Spain is becoming one of the Europe broken states, a lot of countries is broken in

Europe and the Spanish debt is very high. Real Madrid and a lot of Spanish clubs spend a

lot of many on buying players. There are a lot of unemployed people in Spain cannot

afford watch soccer games at home because of the high cost of cables. Sport channels

spend a lot of money and by saying that I mean they paid to the teams the TV rights

which makes the cables very high. If people cannot afford buy tickets to watch the games

and that means the clubs is going to lose one of there mine rescores.

The history and the economy:

A lot of soccer clubs started to helps the community of their area ، than the idea changed

with time it continue to go to compete other team and these days professional teams now

seen as a good way to investigate money. The economic side of soccer has been taken


from the American professional teams. The president of Real Madrid Florentino Pérez

talked about the ideas that Santiago Bernabéu de Yeste which was a player in Real

Madrid than he became a president. A lot of people see Bernabeu as the person who

changed Real Madrid from a normal or an average club to one of the top teams. Bernabeu

has made a strategy that changed the club. This strategy is known as the Galacticos.

Which mean buying the soccer stars, at that time I mean between 1943 and 1978 the

clubs does not have many money resources as the present; he was realign on the tickets

buying. He built soccer Empire and we are following his steps this was what Real Madrid

president said in an interview that conducted with him. Real Madrid named the stadium

of the club Santiago Bernabéu after Mr. Santiago Bernabéu de Yeste.

Entering The Conversation:

The modern soccer teams need to have good recourses, which will allow to teams

to compete and to win titles. My marketing plan has three stapes; the first step is to buy

good players from different parts in the world. The step will give the team popularity in

different countries and we try to focus on the counties that the soccer is the first sport. We

have to make sure that the players that we buy are playing in the national teams for their

countries. So, people would like to buy their jerseys of their favorite players and they are

going to visit and buy tickets to see their favorite player play a live. Sure the club is going

to spend a lot of many to have this kind of players, but the club could see the change in

the income is short term.


The second step is to try to focus on wining the local league. This step might be

strange any club would do it as regular thing, but wining the local title is going to bring

people to the stadium to see the local champions. This step could include that more

people start to be fans for the clubs. This step is going to give the club more buyers for

the jerseys and games tickets. For example, Manchester City Football Club, Which has

bought by individual who focused on wining the Primer league (British league) they wan

the league after 45 years without wining the title. This win has made the fans return to

support the team.

The third step is the tours of the club during the summer. A lot of clubs make

tours. Each club makes tour and play games with local teams and that can make the team

more famous. If I wear marketing adviser for a club, I would choose the countries that

has huge market to make tours in. For example, my figured world Real Madrid makes

each year preparation tours and they chose the United Stated because there is big number

of fans in the U.S. Soccer is not the most popular sport in the U.S., but it is the first sport

in Mexico and in the U.S. there are a large number of immigrants from Mexico and they

brought their culture with them to the U.S. However, the U.S market considers important

market because there is high income from it. Let me tell you that I am fan I and I am

planning to watch their game in the summer and the tickets start from 45 dollar until 490

dollar, the club get a percent from the tickets. The second market that Real Madrid try to

impose the Chinese market. The Chinese people love soccer and they try to keep up with


the Europe soccer. My market plan might sound very easy, but without money and

without media it is imposable. This plan is made for clubs that have money.

So what? What this paper would add to you?

As a normal fan for any professional team in any sport this paper would not

mean any thing to you 10 years ago. Because most the people do not give the

economic side any attention. There is a question might cross the readers minds

what has change during 10 years for sport fans? This paper can help the readers to

figure out the answer for this question and it going to add for the readers’

information about the ways that helped the richest club in the world, to spend more

than two billion dollar. In this paper there are marketing ways that could help some

clubs to increase their incomes. This research has different ways to discussion

managing and marketing in professional teams. I talked about the tremendous

example of the modern soccer team, which is Real Madrid. A lot of economics see Real

Madrid as the best modern club in the world. In this paper I mentioned the inspirations of

this project, which is making a club that can bring the best players in the world. The frits

inspiration was Santiago Bernabéu de Yeste change the idea of buying player at his time

and a lot of people seen him as the Godfather of Real Madrid. Bernabeu had changed the

identity of the club. The second inspiration was the American professional teams and this

might surprise a lot of people. Professional teams are the frits in sport how change the

idea of business in sport. This paper will show a lot of steps that had made in the pest,


which helped the sport business. This paper might help to understand of ownership in

soccer and in some kind of sport.


References

Shropshire, K. (Ed.). (2011). The business of sports. Jones & Bartlett Publishers Chapter one.

Kahn, L. M. (2000). The sports business as a labor market laboratory. The Journal of Economic Perspectives, 75-94.

Nadeau, J., Jones, D. F., Pegoraro, A., O'Reilly, N., & Carvalho, P. (2011). Racial-Ethnic Team-Market Congruency in Professional Sport. Journal of Sport Management, 25(2).

Callejo, M. B., & Forcadell, F. J. (2006). Real Madrid football club: A new model of business organization for sports clubs in Spain. Global Business and Organizational Excellence, 26(1), 51-64.

Kase, K., De Hoyos, I. U., Sanchís, C. M., & Bretón, M. O. (2007). The proto-image of Real Madrid: implications for marketing and management.International Journal of Sports Marketing & Sponsorship, 8(3).

Dobson, S., & Goddard, J. (2011). The economics of football. Cambridge University Press.

Barajas, Á., & Rodríguez, P. (2010). Spanish Football Clubs' Finances: Crisis and Player Salaries. International Journal of Sport Finance, 5(1).

Rasmus, K. S. (January 01, 2012). The need for regulating professional soccer in Europe: A soft budget constraint approach argument. Sport, Business and Management: an International Journal, 2, 1, 21-38.

Baigorri, Manuel, and Alex Duff. "Spanish Soccer's Economic Crisis." Bloomberg Business Week. Bloomberg, 26 Apr. 2012. Web. 26 Feb. 2014.

This article talked about the Spanish soccer and contacts it with Spanish debt and how it has effected on the people. I believe that the people around the world are playing major

Leander Schaerlaeckens. "Rolling out Of control." ESPN. ESPN Internet Ventures, 22 Sept. 2010. Web. 26 Feb. 2014

My primary resource which is my observations.


"Santiago Bhttps://www.youtube.com/watch?v=JZS_PJgf1JMernabeu Yeste."Http://www.in.com/. N.p., n.d. Web. 16 Mar. 2014

Above and behind

Interview with the president of Real Madrid Imaginary:

*Today a lot of people see Real Madrid as the best modern club can you tell me about your opinion about this subject?

Real Madrid is a club with great history which required from as to keep up with it and to try to improve the club. For example if we wan a title this year next year, we want to win all of them.

*How much are you going to spend on buying players? Can you tell me how the club can gain the money back from the players?

I am not sure how much we are going to spend I cannot predict, but I am sure that we will the players that we need. We wait until the coach ask us for players than we see. How we earn from the players there are three main ways the first one Jerseys and the, second way is the pitcher right which we have presenting from, the third way is advertising.

*In two 2006 you sold one of he club office to the government and at that time a lot of people thought it is the end of Real Madrid can you tell us about it?

In 2006 we had a debt and we tried to pay it without selling any thing, but we could not. I can assure the fans that situation will not happen in the future. After that we learned a lesson. This year we paid 92 million without taking any loans from any bank.

*What are the main recourses of Real Madrid and how do you use it?

We have different recourses and one of them is tickets and we have sponsorship that support us, Real Madrid spends the money on salaries and buying players. Now we are devolving the club falsity we spend the money carefully.

*Where do you see Real Madrid ten years from now?

Actually there are wishes to see Real Madrid the best, and we are one of the best I would like to see Real Madrid getting better and better every year. Ten years from now we had finished the reforms in the stadium, my only hope is to see the club in a good position.

assiment two 2 last d

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