Real Madrid Plans Ownership Change Under Florentino Perez: Historic Break from 122-Year Tradition

Real Madrid stands at the precipice of its most dramatic transformation since 1902, as club president Florentino Perez prepares to present groundbreaking proposals that could fundamentally alter the ownership structure that has defined Los Blancos for over a century. The world’s richest football club is seriously considering allowing external investors to purchase stakes for the first time in its storied history.

The €10 Billion Question: Breaking Sacred Tradition

Since its founding in 1902, Real Madrid has remained proudly owned by its socios (club members), a democratic model that has weathered world wars, political upheavals, and the modern commercialization of football. Now, Florentino Perez is orchestrating what could be the most controversial decision in the club’s illustrious past.

The 78-year-old president has been laying the groundwork for this seismic shift, arguing that member ownership, while cherished, increasingly handicaps Real Madrid when competing against clubs backed by billionaires and sovereign wealth funds. With the club valued at an estimated €10 billion—matching the Dallas Cowboys as the world’s most valuable sports franchise—the financial incentives for change are undeniable.

Current Spanish Football Ownership Landscape

Real Madrid belongs to an exclusive quartet of Spanish clubs granted special dispensation to maintain their traditional ownership structure when the government mandated professional teams convert to sociedades anonimas deportivas (sporting limited companies) in the early 1990s.

Perez’s Strategic Vision: The November Assembly Revelation

At Real Madrid’s November 2024 general assembly, Florentino Perez delivered an 85-minute address that sent shockwaves through the football world. His announcement of a potential referendum on ownership changes marked the first concrete step toward dismantling a system that has made the club unique among global football powerhouses.

“I confirm to you that we will bring to this assembly a proposal for the club’s corporate reorganisation that clearly secures our future, protects us from the threats we face, and, above all, guarantees that we, the members, are true owners of our club,” Perez declared to the assembled socios.

The president’s carefully chosen words reflect the delicate balance he must strike between preserving member control and attracting the external investment needed to maintain Real Madrid’s competitive edge in an increasingly expensive football landscape.

The Two-Entity Solution: Football vs. Business

Sources familiar with internal discussions reveal that Real Madrid is exploring a radical split into two separate entities—one governing football operations and another managing business activities. This innovative structure would theoretically allow the club to:

Football Entity (Socio-Controlled):

• Player transfers and contracts
• Coaching decisions
• Sporting strategy
• Match operations
• Youth academy

Business Entity (Investment-Friendly):

• Commercial partnerships
• Stadium revenues
• Merchandising
• Broadcasting rights
• Corporate events

This bifurcation could satisfy both traditionalists determined to preserve sporting control and pragmatists recognizing the need for capital injection to compete with state-backed rivals.

Financial Pressures Driving Change

Real Madrid’s historic €1.045 billion revenue in 2023-24 made them the first football club to cross the billion-euro threshold, yet Florentino Perez argues this achievement masks underlying structural disadvantages. The club’s member-owned status complicates rapid capital deployment for transfers, stadium improvements, and competitive positioning.

Existing External Partnerships

The club has already dipped its toes in external investment waters through strategic partnerships:

These arrangements demonstrate Real Madrid’s willingness to engage external capital while maintaining operational control, serving as potential templates for broader ownership reforms.

The Bundesliga Model: A Potential Blueprint

Real Madrid’s exploration of the Bundesliga’s 50+1 rule represents perhaps the most palatable compromise between tradition and modernization. Under this system, club members would retain majority control (50% plus one vote) while allowing external investors to purchase up to 49% stakes.

However, industry sources suggest this minority position could prove less attractive to potential investors, as it would provide capital without meaningful control over strategic decisions. The challenge lies in structuring investment terms that remain compelling despite limited governance rights.

Democratic Governance Under Pressure

Real Madrid’s current governance involves approximately 2,000 socios compromisarios (delegate members) chosen from the club’s 100,000-strong membership base. These delegates historically rubber-stamp Florentino Perez’s proposals with overwhelming majorities, as evidenced by the 997-100 vote approving stringent presidential candidate requirements in 2012.

The president’s political capital within this system provides him significant latitude to pursue ownership reforms, though the controversial nature of external investment could test even his considerable influence among the socios.

Bernabeu Redevelopment: Catalyst for Change

The approximately €1.8 billion Bernabeu renovation project has served as both a financial burden and a proving ground for external partnerships. The stadium’s transformation into a multi-purpose entertainment venue hosting everything from Taylor Swift concerts to NFL games demonstrates Real Madrid’s commitment to revenue diversification.

This infrastructure investment, combined with COVID-19’s financial impact, has accelerated discussions about sustainable funding models that don’t rely solely on member resources or traditional bank financing.

Challenges and Complications Ahead

The path toward ownership reform faces numerous obstacles that could derail Florentino Perez’s ambitious plans:

Legal and Tax Complications:

• Spanish corporate law restrictions
• Tax implications of entity restructuring
• Regulatory approval requirements
• Member approval thresholds

Political Sensitivities:

• Socios’ attachment to democratic traditions
• Fear of losing club identity
• Concerns about external control
• Historical pride in independence

Investor Concerns:

• Limited control in proposed structures
• Season ticket pricing constraints
• Local fan base prioritization
• Complex governance arrangements

The Timeline for Transformation

With the 2025 general assembly expected before November’s end, Real Madrid faces an accelerated timeline for finalizing and presenting concrete proposals to the membership. Florentino Perez and his advisors at Key Capital Partners and Clifford Chance—the same team behind the failed European Super League—are working to address the intricate legal and financial details.

The president has made clear that any external investment would flow directly into club operations, whether for player acquisitions or infrastructure development. Crucially, he has emphasized that no current stakeholders, including himself, would personally profit from any ownership changes.

Global Implications for Football Governance

Real Madrid’s potential ownership evolution could trigger a domino effect across European football, particularly among clubs struggling to balance tradition with commercial imperatives. The outcome may influence how other member-owned institutions approach the growing financial pressures of elite competition.

As Florentino Perez navigates between preserving Real Madrid’s unique identity and ensuring its competitive future, the football world watches to see whether one of the sport’s most successful and traditional clubs can successfully modernize without losing its soul.

The coming weeks will determine whether Real Madrid joins the ranks of investor-backed clubs or finds an innovative middle path that preserves member ownership while accessing external capital. Either way, change appears inevitable for an institution that has remained remarkably consistent throughout its 122-year journey to the pinnacle of world football.

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