Re: Real Madrid 2010/2011 Finances

by Guest Sat Sep 17, 2011 6:19 pm

Cyberman, we're not a privately owned club persay. We are owned by the "socios", who are the season ticket holders (requirement). It's basically a membership. The club is obligated to spend all of its monies for the betterment of the club. The profits cannot be distributed. It's basically a for-profit organization that is run like a non-profit.

The president is elected by the socios for a set term.

You will never, ever see Madrid generate big profits because it's against the club mandate to retain cash if it's unnecessary for operations. It would either need to be used to pay off debt or to invest in the club. We could easily generate over $100 million in profits if it was a privately-owned entity.

Barca is under the same system as Madrid btw.

So, as long as the club has a sustainable amount of debt and a modest profit, we are running optimally.

by Zealous Sat Sep 17, 2011 6:27 pm

Our model depends on large revenues since we are planning to expand. Both Yanited and Madrid are ridiculously rich so we can leave it at that.

by Guest Sat Sep 17, 2011 6:29 pm

Zealous wrote:Our model depends on large revenues since we are planning to expand. Both Yanited and Madrid are ridiculously rich so we can leave it at that.

Yeah. We will be writing a massive check for the stadium renovation.

by Mr Nick09 Sat Sep 17, 2011 6:33 pm

How much is that hotel going to cost?

i read about over 100M in expenses

by cyberman Sat Sep 17, 2011 6:37 pm

More profit equals money for players.
Esp with FFP in force.
Its not really what im arguing, I just see the big merchandising figure as over glorified since it cost so much to get there and maintain

Its like 2 farmers. 1 farmer is buying in 100 cattle a year, fattening them up, selling for 600 euro profit. Hes wheeling and dealing every year, transport costs, price of feed... having to go out and actually find 100 premium cattle.
The other farmer takes it easy. he has 50 cattle and raises calfs from birth. sells them for 1200 euro when old enough. no transport costs, no headaches in finding suitable cattle to keep...

Point is after that 5hit analogy, its not worth the trouble.

With the cheap prices in non EPL stadiums, will an expansion make a big difference? 100k in the Bernabeu probably wouldnt match the profit from Arsenals 60 odd thousand at the Emirates

by Guest Sat Sep 17, 2011 6:43 pm

cyberman wrote:More profit equals money for players.
Esp with FFP in force.
Its not really what im arguing, I just see the big merchandising figure as over glorified since it cost so much to get there and maintain

Its like 2 farmers. 1 farmer is buying in 100 cattle a year, fattening them up, selling for 600 euro profit. Hes wheeling and dealing every year, transport costs, price of feed... having to go out and actually find 100 premium cattle.
The other farmer takes it easy. he has 50 cattle and raises calfs from birth. sells them for 1200 euro when old enough. no transport costs, no headaches in finding suitable cattle to keep...

Point is after that 5hit analogy, its not worth the trouble.

With the cheap prices in non EPL stadiums, will an expansion make a big difference? 100k in the Bernabeu probably wouldnt match the profit from Arsenals 60 odd thousand at the Emirates

You're completely missing how this works. If i had the energy, i'd explain it to you in detail. This is not "cattle feed" finance lol.

P.S. i'm making fun of your shit analogy, as you so eloquently described.

Bottom line, as Z put it, both clubs are massively healthy and are the 2 richest clubs in the world. Business models are very different however, for a variety of reasons, the biggest of which is organization setup.

by Zealous Sat Sep 17, 2011 6:50 pm

St_Nick09_of_Goal wrote:How much is that hotel going to cost?

i read about over 100M in expenses

Basically a lot.

by Mr Nick09 Sat Sep 17, 2011 6:55 pm

Zealous wrote:
St_Nick09_of_Goal wrote:How much is that hotel going to cost?

i read about over 100M in expenses

Basically a lot.

by cyberman Sat Sep 17, 2011 6:55 pm

[quote="Zealous"][quote="St_Nick09_of_Goal"]How much is that hotel going to cost?

i read about over 100M in expenses[/quote]

Basically a lot.[/quote]

you sir have a brilliant head for business..

by Zealous Sat Sep 17, 2011 6:57 pm

"Basically a lot" is Perez's entire business philosophy tbf.

by punkfusion1992 Sat Sep 17, 2011 9:01 pm

St_Nick09_of_Goal wrote:How much is that hotel going to cost?

i read about over 100M in expenses

that 100m in expenses will be associated with Madrid but I believe they would strike a deal with a big Hotel company like Sheraton/Hilton to run the place. And considering the hotel would be in core heart of the city, it would generate alot of revenue. Most of the revenue would be going to the club but I believe they would make the money back in a couple of years. Plus there is going to be a huge shopping mall that would even be underground. Remember the Bernabeu is at the heart of Madrid it makes alot of money everyday anyways

by cyberman Sat Sep 17, 2011 9:42 pm

how much do you think 1 hotel makes?

lol

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