Real Madrid: The Shift from Football Legacy to Business Model

Real Madrid, the most decorated club in European football history, faces a pivotal transformation that raises concerns about its sporting soul. The club has long been synonymous with a relentless pursuit of victory and an unwavering commitment to excellence. However, recent developments suggest a shift towards prioritizing business interests over sporting achievements. Under the leadership of President Florentino Pérez, Real Madrid pioneered the modern football-business model, leveraging star power and brand valuation to become a global economic powerhouse. Yet, as financial considerations increasingly influence decision-making, the essence of what made the club great appears to be at risk.

Historically, Real Madrid has never shied away from financial investments. The Galácticos era exemplified this approach, with high-profile signings that not only bolstered the squad but also enhanced the club’s global appeal. However, this once-sporting strategy has morphed into a business-first mentality where player acquisitions are often dictated by market value rather than tactical needs. This has led to a squad that is sometimes unbalanced, filled with players who may not fit cohesively into a collective game plan.

Recruits Over Needs

The current recruitment strategy highlights this trend. The club seems more inclined to pursue young talents with high market potential rather than established players who can immediately fill pressing gaps in the squad. This has resulted in an influx of similar profiles in certain positions while leaving critical roles inadequately addressed. For instance, recent discussions around signing an experienced midfielder versus a promising young talent reveal a tendency to lean towards potential rather than immediate necessity. Kees Smit currently emerges as the frontrunner for such a role.

The Mbappé Dilemma

The prolonged pursuit of Kylian Mbappé serves as a striking example of how image and brand overshadow sporting priorities. For years, Real Madrid’s ambitions seemed tethered to the possibility of acquiring this superstar, whose status transcends mere athleticism and embodies economic clout. This fixation on one player has stymied broader planning and led to an overemphasis on spectacle rather than cohesive team development. As they await Mbappé’s eventual decision, questions arise: Will they build a team around him or revert to a more collective approach?

This business-driven environment also places immense pressure on coaches like Carlo Ancelotti, who must navigate not only tactical challenges but also manage player egos and media narratives. Coaches are now seen as brand ambassadors more than just tacticians, which can detract from their ability to foster team unity and strategy.

A Sacrificed Legacy

Meanwhile, Real Madrid’s famed youth academy, La Fábrica, seems relegated in this new order. Historically rich in talent production, it is now often viewed through an economic lens—frequent loans and quick sales diminish its potential impact on the first team. This shift threatens the club’s identity built on nurturing homegrown talent alongside star signings.

The relationship with fans is evolving too; traditional supporters are increasingly viewed as consumers in a global marketplace. The allure of merchandise and highlight reels is overshadowing the intrinsic value of winning matches. As long as the brand remains strong, on-field struggles are often overlooked.

While it would be premature to declare an outright crisis at Real Madrid—after all, they continue to compete at high levels—the underlying structural imbalances are concerning. A gargantuan business model risks overshadowing the core values that have historically defined this iconic club: collective effort, sporting excellence, and an unyielding quest for victory.