Real Madrid: A new management paradigm for a sport company.

Abstract

Football's industry crisis is defined by difficulty to obtain new incomes derived from traditional business.Faced to this situation football clubs have designed new strategies that have turned them into modernsports&media companies. Real Madrid's president Florentino Pérez is a perfect example of this new strategic view in a Spanish sport organization. The main contribution of the new management model applied to the club has been value brand progressive enhancement and new forms of brand exploitation from a newmarketing strategy. As a result of this new strategy, incomes from brand exploitation have increased importantly and Real Madrid is quite near to obtain a leadership position between football clubs around theworld. From this experience it's possible to extract some interesting implications for sport companies' management.