Liverpool FC Forum

by **Redrider** » Wed Sep 15, 2004 11:28 am

Attached below is a link to an excellent article from the Sunday Times which outlines how Real Madrid operate. Makes very interesting reading, look out for the parallels with Owen and what they are up to now with Gerrard.
http://www.timesonline.co.uk/newspaper/ ... 46,00.html

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by **kindaconfuzed** » Fri Sep 17, 2004 7:40 am

Redrider

Read the link and it raises a number of important issues. On another posting I did a rough calculation as to the money a club got from gate receipts which in the overall need to pay the costs of a club are not a significant enough to be the most important (for the large clubs).

What came out of it was monies was needed from other areas, marketing and transfer fees.

This article confirms the importance of the transfer market when they RM bought Beckham for £25m but there other stars cost them double that. The point is that Beckham has a greater marketing pull and so they got him for a bargain price.

The dynamics of Beckham leaving was his fall out with Ferguson and the club thought the fans would be more upset with Ferguson leaving than Beckham but I'm not sure I agree with this. I would have thought Beckham was more dear to them than Ferguson.

The other issue his how shortsighted MU where in undervaluing Beckham in the first place and this has cost them serious money, greater than ticket sales for some time.

Redrider that was a great link,,, thanks

by **Ciggy** » Fri Sep 17, 2004 8:27 am

They have found this kid of 7 from down south, They have moved him and his family to madrid, dont know if any one else as heard of this but its true, I know michael owen was a great potential at 10 but 7? Anyway Real have moved him and his family over and bought them a luxury villa :glare:

by **106-1093504160** » Fri Sep 17, 2004 9:37 am

i read that also. i think its wrong

by **azriahmad** » Fri Sep 17, 2004 10:08 am

Real used to be laden with debts but since they sold their training ground which was located in the surburbs of Madrid, they became debt free.
They have recruited the galacticos for reasons related to their marketing potential apart from the glalacticos' playing abilities. The marketing and merchandising income should offset the high wages etc for these galacticos. However, "merchandising income" cannot be taken as 100% profit to the club as these merchandise do cost money to produce and market, but tend to be high profit margin items i.e. low cost to produce but can sell at high prices, much like replica jersey.

However, marketability also depends on the continuing success of the team so that the 'brand' remain as the in-thing. Normally, galacticos are the players who have the abilities to be the match winner or are able to make spectacular play etc and tend to be offensive players.

If Real Madrid keep buying these galacticos, they would soon run-up debts again and will be back to square one but with no more prime land but their own stadium to sell.

by **106-1093504160** » Fri Sep 17, 2004 10:26 am

u folk like to write alot, good stuff

by **Leonmc0708** » Fri Sep 17, 2004 10:29 am

azriahmad wrote:Real used to be laden with debts but since they sold their training ground which was located in the surburbs of Madrid, they became debt free.

Yes and what a fiddle that was.

The president of the club was also the local mayor.

The debt was £197m.

The training ground was sold for £197m.

Coincidence ?

Me thinks not.

by **azriahmad** » Fri Sep 17, 2004 10:40 am

No club, no matter how big, can financially survive in the long term by buying mega players every year at mega transfer prices, they also have to develop their own. Since this present president came on board, he has done just that. Raul, Butragueno, Hierro (I think), Casillias were developed from their youth system.

Let them buy whomever they want, and like Chelsea, if they ever come knocking on our door and Stevie G wants to go (perigh the thought), we should be the side who drive the bargain, not them as in Owen's case, and sell as high as possible. believe it or not, one player is not indispensible, and with the money generated, we can rebuild. Used to be the case Liverpool have only one or two excellent players (after our golden era) with the rest fairly ordinary.

Not anymore, as we have a few. Money is not everything in life, although it is important - just ask Owen as he left for wages which was lower than what he would have got from us and less than Woodgate. Fulfilment also comes from being able to achieve things.

by **Redrider** » Fri Sep 17, 2004 10:41 am

I think our Board of Directors, could learn a lot about cunning football business from the Real Madrid guy's, particularly Perez. He makes David Moores and Rick Parry look extremely naive. :blues:

by **106-1093504160** » Fri Sep 17, 2004 10:45 am

yeah and they got beat by a german side an all

by **vlady16.1** » Fri Sep 17, 2004 10:52 pm

the fact is that teams like real cannot maintain this idiocy forever-- as much as we don't like to hear it it is a business and any business that spends like a drunken sailor WILL fail -- unfortunately they will mess the market so bad that others will fall also

as stated by others they survive with "game breakers" who will make the beautiful goals to win the big game ( not last night nor last year )-- unfortunately the model is failing ergo the marketing will fail due to the lack of wins and voila the team loses on marketing fees and if so financial ruin will follow-- i hear alot of slagging of moores and parry but they have ran a pretty tight ship- in the end it will financial management that will win out

by **laza** » Sat Sep 18, 2004 1:21 pm

cisses_gona_get_ya wrote:They have found this kid of 7 from down south, They have moved him and his family to madrid, dont know if any one else as heard of this but its true, I know michael owen was a great potential at 10 but 7? Anyway Real have moved him and his family over and bought them a luxury villa

Yeah i saw a short news story about that on the TV down here in Oz but havent seen much else written about it.
Hope Real dont play MANCs too soon or else Roy Keane might beat the kid up
Does seem strange at 7

by **azriahmad** » Sun Sep 19, 2004 7:36 am

Laza, that was a good one about Roy Keane beating up this kid if Real plays Mancs...LOL!

by **laza** » Sun Sep 19, 2004 7:55 am

Actually it was low blow Ariz but i can never help myself with low blows when it comes to the MANCs

by **azriahmad** » Sun Sep 19, 2004 8:03 am

Well, Laza, you can't fault a player who is nearing his playing days to find an "alternative hobby/pastime/things to do" in preparation for his retirement from active playing. What esle can he do, being like a mob on the field always.

Anyway he had a good start in assaulting a 16 year-old, so the next step is to go for even younger kids!

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