The revolution in European soccer market 1

The revolution in European soccer market Muaath B Albadin University of North Carolina at Charlotte

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Introduction/ Background:
Watching soccer is very popular in my country, but that does not mean that we have a good league comparing to European leagues. When I was young my elder brother was a fan for a local team called Alhilal and this team is one of top five. I stated to watch their games with my brother and I loved the team. In 2003 my father brought for us a card that you put in the T.V Receivers, which was allowing to us to watch soccer games in different part in the world. At the time we used to hear about team that called Real Madrid and my brother was interested to know about that team. In that time I used to watch Alhilal team in the stadium and at home I watched Real Madrid. During the time I became a fan of Real Madrid. What I liked in Real Madrid the amount of soccer stars that were playing for it. As I was watching Real Madrid playing and I started to compare between Alhilal and Real Madrid. The comparing was not fair because Real Madrid has been considered one of the best team in the world since 1959 and Alhilal is good team that wins the local league, but it was not the best in the world. I saw something in Real Madrid games that I could not find it in Alhilal. For example, there is huge different between the qualities of the players. When you watch big teams in Europe playing against each other you notice that there is new formation and tactics, which are created by the coaches of these teams. Also, in my local league there is lack of talented players sure there are players who can play very well, but you cannot compare them with the players who play in the European leagues. I have chose to watch Real Madrid games and I almost stop watching the local league.

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In this paper I investigate the ways that made Spanish clubs are able to generate significant income, and how they attract fans to like them. More this paper shows the relation in marketing managing and how effect on the profit of clubs. More likely I am focusing in a soccer team, which is Real Madrid you might notice that I represent the club as great example that made a revolution in the European soccer market. There were things that inspire Real Madrid and I tried to mention them in this paper. However, I read many articles about the business of soccer and I saw that the change was recently. I was looking for the European teams incomes and I found a big different between 2000 and 2013. In 2000 the highest income was 217 million and British club that earn it, but in 2013 the highest income was 518 million and Real Madrid, this number broke a record. This paper try to show how most of the team change the way that they look at their clubs, even the fans have became more interested in the economic side of their clubs. If the club has high income, that meant they can buy players with high qualities and skills. We used to think that at end of each year people see how many titles the clubs had wan and the economy experts are going to see how much the club had earn and how much they spend. Now both the experts and the normal fan analyze the both sides and expect what the next year going to be.

Literature Review:
Thinking that sports can change people lives is typical thoughts those kind of thoughts that usually related to health and lifestyle. Sport can help people to change their

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shapes and even the way people thinking. For example, sport can help the people to take care of their health and make them think of their future. In these days sports have change a lot and people considerer sports as a job in some cases. In my paper I focused on practically in sport and on clubs economies, which made a big mark on the business of soccer in Europe. Real Madrid is a soccer club that has spent over two billion dollar on buying professional soccer players. Spending huge amount of money and making high incomes during the pervious years. This made the club a great modern example in managing and business in general. There are some terms that I am going to address hear to make it more clear to you.

Terms:
Sponsorships: usually they are companies that support the professional teams and sometimes they support a single game. For example, if it final game or friendly game. In my paper I mentioned the sponsorships and how they made a change on the sports business and on the clubs. T.V. rights: In the sports leagues the teams get paid from the T.V. canals, because the teams has the rights of their appearances in the T.V. companies try to be sponsorship for the clubs that has supporters. They try to market their products and sometimes their services. I have an example for one of the biggest company in Germany, which is Audi and it is one of the sponsor to Real Madrid team and each year the company provides new cars for the player of the team and the some staff in the club. You can see during the gamed the name of the company and sign in the stadium.

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Ownership: these days there are a lot of companies around the world that invest in professional teams in different sports. Some teams are owned by the cities, which means no one can buy them. In the other hand, there are teams that owned by individuals or companies. There are some reasons that force the professional team to change the time from a soccer time to a company For example, lack of resources, which could affect on the competition with other teams. Real Madrid: it is a Spanish football (soccer) team and it is the richest club in the world. A lot of economies see the club as the best modern club because of the management that he it has and the high incomes that it makes over the past years. Real Madrid has successful club in soccer it has the highest local and European titeals. Florentino Perez: he is Spanish businessman and he is the president of Real Madrid football club. He took over as president in 2000 for the first time and that was his first term. He made the first highest transferred in the players transferring by buying Zinedine Zidane who was the best soccer player on that time. The second term for him in 2009 until now and he has spent more than two billon and they called him the golden president. Galcticos: it means the expensive, world-famous Real Madrid football players the "galcticos" policy pursued during Florentino Perez presidency. Florentino has been buying the most expensive players and the most famous players which made the club very known for a lot of people in the world, and the Galacticos has two term which are the same terms of Perez presidency . The first Galacticos was between 2000 and 2007 the second since 2009 and until now. The most expensive player between all of them is

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Cristiano Ronaldo and he coasted the club 94 million dollars. Many people think that the Galacticos are spooling the transference marketing between the clubs. They clime that Real Madrid raises the price of the players, but the president of Real Madrid said that the clubs are asking for high number for the players.

The ownership and the effected of ownership on the economy:

When I started research about my figured world I had read before that no one could buy my figured world. Ownership started in the U.S. Professional teams, which have been owned by companies and individuals. During reading articles I learned that there are two-mine ownership types in Spin and Europe teams. The first kind of ownership is by companies and individuals. The second kind is members club. My figured world is own by members club. The auteurs had said that there are positives and negatives of ownerships and they gave example on the company ownership. They said that the company could do what ever of the team and nobody could do anything that is not right because still there are some rules. Most of the clubs that have bought by companies or individual, the buyers try to change the club to the best. There are great examples such as, Manchester city that owned by individual, Paris saint germain that owned by a family.

The U.S examples:

The U.S professional teams have been great examples for a lot of sport teams around the world. The writers have mentioned Florentino Perez who is the President of Real Madrid club. Perez saw that the U.S professional teams have made their names and

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teams as brands and that what he wanted his team to be. This idea means that the club can make high income from the jerseys and other products. Real Madrid has strategies, which have been put by Perez; he found that U.S teams could be good examples to mange the club. Some writers see that the European business cannot be as good as the U.S professional teams and they compere that by statistics. Some people said that Santiago Bernabu had came to the U.S and saw that people paid more money to watch the stars play American football. So he came with the idea, which is buying the stars and from that he got the idea. Also, Perez always talks about the inspiration that he got from Berabeus term of presidency.

The effect of soccer on Europe and Spain in particularly:

Spain is becoming one of the Europe broken states, a lot of countries is broken in Europe and the Spanish debt is very high. Real Madrid and a lot of Spanish clubs spend a lot of many on buying players. There are a lot of unemployed people in Spain cannot afford watch soccer games at home because of the high cost of cables. Sport channels spend a lot of money and by saying that I mean they paid to the teams the TV rights which makes the cables very high. If people cannot afford buy tickets to watch the games and that means the clubs is going to lose one of there mine rescores.

The history and the economy:

A lot of soccer clubs started to helps the community of their area than the idea changed with time it continue to go to compete other team and these days professional teams now seen as a good way to investigate money. The economic side of soccer has been taken

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from the American professional teams. The president of Real Madrid Florentino Prez talked about the ideas that Santiago Bernabu de Yeste which was a player in Real Madrid than he became a president. A lot of people see Bernabeu as the person who changed Real Madrid from a normal or an average club to one of the top teams. Bernabeu has made a strategy that changed the club. This strategy is known as the Galacticos. Which mean buying the soccer stars, at that time I mean between 1943 and 1978 the clubs does not have many money resources as the present; he was realign on the tickets buying. He built soccer Empire and we are following his steps this was what Real Madrid president said in an interview that conducted with him. Real Madrid named the stadium of the club Santiago Bernabu after Mr. Santiago Bernabu de Yeste.

Entering The Conversation:

The modern soccer teams need to have good recourses, which will allow to teams to compete and to win titles. My marketing plan has three stapes; the first step is to buy good players from different parts in the world. The step will give the team popularity in different countries and we try to focus on the counties that the soccer is the first sport. We have to make sure that the players that we buy are playing in the national teams for their countries. So, people would like to buy their jerseys of their favorite players and they are going to visit and buy tickets to see their favorite player play a live. Sure the club is going to spend a lot of many to have this kind of players, but the club could see the change in the income is short term.

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The second step is to try to focus on wining the local league. This step might be strange any club would do it as regular thing, but wining the local title is going to bring people to the stadium to see the local champions. This step could include that more people start to be fans for the clubs. This step is going to give the club more buyers for the jerseys and games tickets. For example, Manchester City Football Club, Which has bought by individual who focused on wining the Primer league (British league) they wan the league after 45 years without wining the title. This win has made the fans return to support the team. The third step is the tours of the club during the summer. A lot of clubs make tours. Each club makes tour and play games with local teams and that can make the team more famous. If I wear marketing adviser for a club, I would choose the countries that has huge market to make tours in. For example, my figured world Real Madrid makes each year preparation tours and they chose the United Stated because there is big number of fans in the U.S. Soccer is not the most popular sport in the U.S., but it is the first sport in Mexico and in the U.S. there are a large number of immigrants from Mexico and they brought their culture with them to the U.S. However, the U.S market considers important market because there is high income from it. Let me tell you that I am fan I and I am planning to watch their game in the summer and the tickets start from 45 dollar until 490 dollar, the club get a percent from the tickets. The second market that Real Madrid try to impose the Chinese market. The Chinese people love soccer and they try to keep up with

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the Europe soccer. My market plan might sound very easy, but without money and without media it is imposable. This plan is made for clubs that have money.

So what? What this paper would add to you?

As a normal fan for any professional team in any sport this paper would not mean any thing to you 10 years ago. Because most the people do not give the economic side any attention. There is a question might cross the readers minds what has change during 10 years for sport fans? This paper can help the readers to figure out the answer for this question and it going to add for the readers information about the ways that helped the richest club in the world, to spend more than two billion dollar. In this paper there are marketing ways that could help some clubs to increase their incomes. This research has different ways to discussion managing and marketing in professional teams. I talked about the tremendous example of the modern soccer team, which is Real Madrid. A lot of economics see Real Madrid as the best modern club in the world. In this paper I mentioned the inspirations of this project, which is making a club that can bring the best players in the world. The frits inspiration was Santiago Bernabu de Yeste change the idea of buying player at his time and a lot of people seen him as the Godfather of Real Madrid. Bernabeu had changed the identity of the club. The second inspiration was the American professional teams and this might surprise a lot of people. Professional teams are the frits in sport how change the idea of business in sport. This paper will show a lot of steps that had made in the pest,

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which helped the sport business. This paper might help to understand of ownership in soccer and in some kind of sport.

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References

Shropshire, K. (Ed.). (2011). The business of sports. Jones & Bartlett Publishers Chapter one. Kahn, L. M. (2000). The sports business as a labor market laboratory. The Journal of Economic Perspectives, 75-94. Nadeau, J., Jones, D. F., Pegoraro, A., O'Reilly, N., & Carvalho, P. (2011). Racial-Ethnic Team-Market Congruency in Professional Sport. Journal of Sport Management, 25(2). Callejo, M. B., & Forcadell, F. J. (2006). Real Madrid football club: A new model of business organization for sports clubs in Spain. Global Business and Organizational Excellence, 26(1), 51-64. Kase, K., De Hoyos, I. U., Sanchs, C. M., & Bretn, M. O. (2007). The proto-image of Real Madrid: implications for marketing and management.International Journal of Sports Marketing & Sponsorship, 8(3). Dobson, S., & Goddard, J. (2011). The economics of football. Cambridge University Press. Barajas, ., & Rodrguez, P. (2010). Spanish Football Clubs' Finances: Crisis and Player Salaries. International Journal of Sport Finance, 5(1). Rasmus, K. S. (January 01, 2012). The need for regulating professional soccer in Europe: A soft budget constraint approach argument. Sport, Business and Management: an International Journal, 2, 1, 21-38. Baigorri, Manuel, and Alex Duff. "Spanish Soccer's Economic Crisis." Bloomberg Business Week. Bloomberg, 26 Apr. 2012. Web. 26 Feb. 2014. This article talked about the Spanish soccer and contacts it with Spanish debt and how it has effected on the people. I believe that the people around the world are playing major Leander Schaerlaeckens. "Rolling out Of control." ESPN. ESPN Internet Ventures, 22 Sept. 2010. Web. 26 Feb. 2014 My primary resource which is my observations.

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"Santiago Bhttps://www.youtube.com/watch?v=JZS_PJgf1JMernabeu Yeste."Http://www.in.com/. N.p., n.d. Web. 16 Mar. 2014

Above and behind

Interview with the president of Real Madrid Imaginary: *Today a lot of people see Real Madrid as the best modern club can you tell me about your opinion about this subject? Real Madrid is a club with great history which required from as to keep up with it and to try to improve the club. For example if we wan a title this year next year, we want to win all of them. *How much are you going to spend on buying players? Can you tell me how the club can gain the money back from the players? I am not sure how much we are going to spend I cannot predict, but I am sure that we will the players that we need. We wait until the coach ask us for players than we see. How we earn from the players there are three main ways the first one Jerseys and the, second way is the pitcher right which we have presenting from, the third way is advertising. *In two 2006 you sold one of he club office to the government and at that time a lot of people thought it is the end of Real Madrid can you tell us about it? In 2006 we had a debt and we tried to pay it without selling any thing, but we could not. I can assure the fans that situation will not happen in the future. After that we learned a lesson. This year we paid 92 million without taking any loans from any bank.

*What are the main recourses of Real Madrid and how do you use it? We have different recourses and one of them is tickets and we have sponsorship that support us, Real Madrid spends the money on salaries and buying players. Now we are devolving the club falsity we spend the money carefully. *Where do you see Real Madrid ten years from now? Actually there are wishes to see Real Madrid the best, and we are one of the best I would like to see Real Madrid getting better and better every year. Ten years from now we had finished the reforms in the stadium, my only hope is to see the club in a good position.