Real Madrid’s Strategic Corporate Transformation Under Perez

According to *El Periodico*, Madrid’s president, Florentino Perez, has embarked on a major corporate restructuring, planning to sell approximately 10% of a newly formed commercial entity to secure fresh investment. This strategy follows the club’s earlier agreement to sell 20% of future profits from the Santiago Bernabeu to Sixth Street and Legends for €360 million (£317m/$417m), a financial maneuver regarded as Madrid’s initial “lever.”

In a recent address to Real Madrid’s members, Perez emphasized the necessity of modernizing the club’s organizational structure while retaining its traditional member-owned model. He stated: “Our club must have an organizational structure that protects us as an institution and safeguards all of us as owners of Real Madrid. I confirm that we will present a proposal for corporate reorganization to this Assembly that secures our future, shields us from various threats, and guarantees that the members retain true ownership of our club and its financial assets.”

These remarks reflect the president’s effort to balance the need for new investment with the club’s cherished identity as a non-SAD (Sociedad Anonima Deportiva) sports entity. Although Perez has expressed admiration for Germany’s 50+1 ownership model, Spanish law imposes significant obstacles to its adoption. Consequently, Real Madrid is exploring a framework of subsidiaries to attract investment without compromising its sporting governance.

Financial advisors, including Anas Laghrari, Key Capital Partners, and Clifford Chance, are reportedly advocating for a strategy similar to that established with Real Madrid Estadio SL in 2021, which manages several stadium-related operations. Perez is expected to replicate this model by creating a new commercial entity that investors can buy into, ensuring no influence over the club’s governing bodies.

This approach preserves Real Madrid’s status as a non-public limited company, avoiding a transformation that could dilute the historical power of its members. Instead of a direct sale of the club, investors would acquire equity in a business responsible for managing commercial activities such as sponsorships, stadium operations, events, and marketing rights, while the sporting side, including the first team, academy, coaching structure, and sporting decisions, would remain entirely owned by the members.

Perez reiterated his commitment to the club’s member-driven identity in his internal assembly message. With expenses for the revamped Bernabeu reaching €1.347 billion, up from an original estimate of €575 million, the club needs a new liquidity injection to stabilize its financial situation. Reports indicate that as of June 30, 2025, the stadium’s outstanding loan debt will total €1.132 billion, influenced by inflation, the war in Ukraine, and enhancements for concerts, among other factors.

This new model also reflects a more controlled variation of the “levers” used by Barcelona to avoid bankruptcy, which included the creation of entities like Barca Studios and Barca Licensing Merchandising. Perez aims to implement a similar strategy, with any shares in the new company distributed automatically and free of charge to existing club members, functioning more as membership rights than tradable financial instruments.

Crucially, the commercial entity will remain overwhelmingly owned by Real Madrid, ensuring that members continue to be the ultimate decision-makers. Reports also suggest that the club is considering a partial demerger of its sporting and commercial operations, which could pave the way for a more structured hybrid governance model. While investors would hold minority stakes in the commercial arm, the sporting entity would remain intact, preserving the philosophy Perez has championed for over two decades.

This structure is designed not only to raise capital but also to shield Real Madrid from political, legal, or market vulnerabilities in the future. The immediate next step involves an extraordinary assembly where socios will vote on Perez’s restructuring proposal. Advisors are currently preparing the legal and tax frameworks to ensure compliance with Spanish sports law, which mandates that all commercial income be reinvested for sporting purposes and prohibits profit distribution.

If approved, the new subsidiary will be established, commercial asset management will be defined, and negotiations will commence with investors who have already expressed interest in providing capital. The club is likely to prioritize partnerships with long-term interests in global sports ventures over short-term financial firms.

In the broader context, this initiative represents Real Madrid’s effort to future-proof its financial model amid an increasingly competitive landscape dominated by state-backed clubs and global investment groups.