Real Madrid CF has become the most valuable football club in 2022 with a worth of $5.1 billion, tipping off their eternal rivals, FC Barcelona. But how did they make this feat possible? What contributed to their success over the footballing giants of Europe such as Barcelona and Manchester United? The two main reasons for this achievement are: First, signing the best players in the footballing World to play for Real Madrid, and secondly, through the marketing strategy of building the brand image. Hence, the club's success in sporting and financial terms followed this strategy.
During the start of the century, Real Madrid focused on signing the best players to the club. This move has seen the likes of the best footballers of the generation, such as Luis Figo, Ronaldo, David Beckham, and Zinedine Zidane, make record-breaking fee transfer moves to Real Madrid. Even though this move didn't pay off for the club in terms of titles and trophies won, it did help them secure record-breaking deals through its projected brand image. The club projected itself as the club to join to be the best footballer in the World. No doubt, players wanted to join the club, given its legacy of conquering European and Spanish titles over the years and having players who went on to win Ballon D'Or awards. Hence, the brand image created by signing the best players helped the club secure million-dollar sponsorship deals from Adidas, B-Win, and the Fly Emirates over the years. But, they hit a roadblock when FC Barcelona, which had the likes of Messi, Xavi, and Iniesta, managed by Pep Guardiola, went on to win trophies in Spain and Europe. Over the years, they saw limited success in financial terms as well. How did they bounce back?
Real Madrid's strategy to have the best players in the club didn't change. Hence, to challenge Barcelona's dominance and become the best team in the World, they signed top players such as Kaka from AC Milan and Ronaldo from Manchester United. Also, they brought in Jose Mourinho, known for his footballing strategy to win games against Pep Guardiola. Mourinho started to shape a team that could not only win trophies but create a huge fan base that Real Madrid players started earning massive amounts through Social media. Fans from across the World were attracted to the brand 'Real Madrid' and came in huge numbers to see their favorite players play. This move significantly impacted the club as they saw a huge revenue surge through ticket and merchandise sales. After 2015, the strategy employed by Real Madrid started to pay off in sporting terms as well as they went on to win three successive European Titles, a feat only a few clubs have achieved since the tournament's inception. They also managed to control Barcelona's dominance in Spain by winning the league trophy two times in five years. Did this success sustain?
With Ronaldo's departure from Real Madrid in 2018, the club struggled to win trophies, and many fans following Ronaldo changed their allegiance to other clubs. Critics and Pundits across the Globe started to criticize the club for letting Ronaldo leave and the repercussions it had caused. But, Real Madrid was slowly transforming its strategy by not buying top players from other clubs but by signing the most promising young football players across the Globe. They spent significant money in this process and also on the expansion of their home football stadium. Even though this strategy took time, by 2022, they went on to win the Spanish League title for a record 35th time and the European Title for the 14th time, the most a club has ever won. This success ensured that Real Madrid secured the most valuable football club title in 2022 and saw huge revenue from winning the league and tournament.
E C Yuvaraju
A humble man with a big dream to gain knowledge and experience.
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