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Revealed: The blueprint behind Real Madrid’s €1 Billion revenue ambition

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Photo by FRANCK FIFE/AFP via Getty Images

As one of football’s biggest and most successful institutions, Real Madrid enjoy serious perks on the economic front. After all, they cater to a worldwide audience and thus see their remunerations come in from across borders.

The arrival of Kylian Mbappe will only serve to further grow Los Blancos’ fanbase, and with a generational squad set to dominate world football for the years to come, Florentino Perez sees a special marketing opportunity.

According to reports from SPORT, Real Madrid have thus set themselves a target to hit €1 billion in revenue and have drawn up a concrete plan for the same.

The player aspect

As a football institution, one of the most significant aspects of remuneration is the team’s direct winnings in terms of prize money. Having won the Champions League last season and with Mbappe coming in, the team is in safe hands.

Moreover, the average age of Real Madrid’s squad is just 27.1 years implies that the team has significant longevity with little change expected in personnel.

The second important aspect that the club hopes to count on is the crowd-pulling factor that such young players exert on the new generation.

Kylian Mbappe will be the face of Real Madrid’s marketing campaign. (Photo by FRANCK FIFE/AFP via Getty Images)

Real Madrid already boast 410.9 million followers on social media and have added 48.4 million just last year. Mbappe, who himself has 132 million followers across Instagram and X, will further amplify that number next season and add to the club’s followers.

It is thus clear that the Frenchman will become the face of the club and the centre for all marketing operations of Real Madrid plan.

The road to €1 billion is thus not complicated, although Perez must be wary that Mbappe is picky with the brands he endorses. Further, the distribution of image rights will be a major factor to finalise.

The new Bernabeu

Having undergone extensive renovation, the New Santiago Bernabeu will take over as the world’s highest-grossing football stadium next season and play a massive role in boosting Real Madrid’s collections. The partnership with Sixth Street and Legends will also be crucial.

Furthermore, the new venue will also serve as a massive economy generator through miscellaneous events. Apart from Taylor Swift, the club also has agreements with Karol G, Aitana, Lola Indigo and La Velada del Ano de Ibai Llanos for exclusive events.

Real Madrid plan to add extra revenue from exclusive events at Santiago Bernabeu. (Photo by Angel Martinez/Getty Images)

Needless to say, such events will serve significantly to boost the income and near the elusive €1 billion mark.

Cost-cutting

The final, yet critical manoeuvre Perez plans is to cut the costs on the wage front with a salary reduction of €0% already being made in both 2019-20 and 2020-21. That was, in fact, one of the major reasons Real Madrid stayed on their feet in the pandemic.

Player sales is another element where the men in white have worked their plan, getting rid of the older players while their market value was still high and reinvesting the cash into younger talents who can serve for at least the next decade.

The club recorded north of €800 million in income last year and the €1 billion mark is not too far off. Needless to say, the coming year could thus be special for the men in white.

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Real Madrid News

Real Madrid trailing Premier League heavyweights in UEFA club rankings

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Photo by DARREN STAPLES/AFP via Getty Images

UEFA has announced its latest club rankings, based on the performance of each team in European competitions over the last five seasons, and despite winning the Champions League last season, Real Madrid trail Manchester City in these standings. 

It must be noted that the coefficients of these rankings are calculated purely on the basis of results in European competitions, without considering domestic league performance. The rankings are crucial as they determine the seedings in UEFA competition draws.

Top teams in UEFA rankings

This time, Manchester City haves outshone Real Madrid, topping the list with a coefficient of 123,000 points, while Real Madrid have 119,000 points. Bayern Munich complete the top three with a score of 108,000 points. 

Man City have been incredibly consistent since 2021, securing a Champions League title, reaching a final, and making it to a semi-final, which has propelled them to the top spot in the rankings.

Manchester City are above Real Madrid in UEFA club rankings. (Photo by Stu Forster/Getty Images)

The competition between Manchester City and Real Madrid has been intense, especially in the Champions League. The two giants of European football have faced each other in four knockout ties since 2020, each winning two ties. 

Their consistent performances have solidified their status as the current powerhouses of European football.

What about the other La Liga teams?

Spanish football, particularly La Liga, is well-represented in these rankings. Alongside Real Madrid, Villarreal, Atletico Madrid, and Barcelona are notable mentions. 

Villarreal, on their part, are in the 7th place after winning the Europa League in 2021 and reaching the Champions League semi-finals in 2022. 

Atletico Madrid are positioned at 17th, just ahead of Barcelona, who is struggling to maintain its usual high ranking. 

Amidst all this, the English Premier League stands out as the dominant force in these rankings. Six of its teams are in the top 20, showcasing the strength and competitiveness of English football. 

The Italian League and the Bundesliga also have a strong presence, each contributing four teams to the top ranks.

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