At Real Madrid's annual General Assembly this weekend, club president Florentino Perez gave a speech full of confidence… and some contradictions. With the announcement of 1.073 billion euros in revenue – the highest in the club's history – Perez underlined Real Madrid's position as one of the most powerful institutions in world sport. Yet his address quickly pivoted to portray the club as an entity under siege, threatened by forces ranging from Ballon d'Or voting irregularities to FIFA's “monopolistic” control of European football and Uefa.
In his criticism of the Ballon d'Or voting process, Perez pointed to the perceived snub of Vinicius Jr. as evidence of a faulty system. He argued for a more selective vote, but did not stop to address why an influential club like Real Madrid could not overcome such prejudices. Elsewhere, Perez's criticism extended to LaLiga and its president, Javier Tebas, who he accused of proposing policies that would divert revenue from clubs through its controversial CVC deal.
The assembly also celebrated the ambitious renovation of the Santiago Bernabeu Stadium by Real Madrid, a project that Perez described as transformative for the future of the club. While the new venue has already started hosting concerts and other events, Perez acknowledged that these revenues remain modest (only 1% of the club's total revenues). Which leads you to wonder then why the club went through so much trouble to host concerts in the first place, if its impact is so small.
Namibian journalist Sheefeni Nicodemus responded #RealMadrid President Florentino Perez saying that he should not have a vote in the #BallonDOr.
“Basically, I suspect these are the words of someone who is frustrated,” he told Cadena SER. pic.twitter.com/Eb0OzBBfRe
— Football España (@footballespana_) November 26, 2024
As Perez detailed the triumphs and challenges, his speech revealed a paradox at the heart of Real Madrid's narrative: a club at the height of success but still framed as needing protection from outside forces . Whether this framing reflects a real concern or a strategic stance to persuade partners (members) remains a question for Real Madrid fans to consider.
League's legal battle over CVC deal
La Liga has been embroiled in a legal and political battle surrounding its multi-billion euro deal with CVC Capital Partners, a private equity firm. The conflict arises from the rejection of the big clubs – FC Barcelona, Real Madridand Athletic Club – to support the deal, raising questions about its legality and feasibility. At one point, CVC said it considered withdrawing from the deal entirely, prompting League president Javier Tebas to take decisive action.
To strengthen the legal basis of the agreement, Tebas and his team began lobbying Spain's Superior Sports Council (CSD) and political parties to amend the country's sports law. These proposed changes are intended to address two key issues. The confidential said Tebas sought to secure stronger control over La Liga's broadcast rights. This would have allowed the League to push through the deal, ignoring opposition from dissident clubs. Second, the proposed changes include a clause that gives the League the authority to ban players registered in a future European Super League from also playing in the Spanish league.
At first, it seemed that Tebas had successfully gained support for these amendments. In 2022, members of the Socialist Workers' Party of Spain (PSOE) and the Conservative Popular Party (PP) appear to support the changes. However, this agreement fell apart, as both parties eventually withdrew their support. Whether Perez directly influenced this change is unclear, but his strong opposition to the CVC deal and continued efforts to promote the Super League likely played a role in the political dynamic.
“We will bring forward a proposal for the corporate reorganization of the club that will clearly secure our future, protect us from the threats we face and, above all, ensure that the members are the true owners of our club.”
At the club's general meeting yesterday, the president… pic.twitter.com/jJhQTt83MN
— Football España (@footballespana_) November 25, 2024
This controversy over the League's CVC agreement highlights the clash between collective decision-making and individual club autonomy. The League's authority to sell broadcast rights as a collective is supposed to benefit the league as a whole, allowing smaller clubs to share in the revenue generated by global brands such as Real Madrid and Barcelona. With 38 of the 42 clubs in Spain's top two divisions backing the deal, it raises the question of whether the rejection of a few clubs – mainly Real Madrid, Barcelona and Athletic Club – will be enough to block the deal.
However, Florentino PerezAutonomy concerns have some validity. Forcing clubs to sell part of the broadcasting rights without their consent creates an undoubtedly dangerous precedent for Spanish football. Real Madrid and similar clubs argue, as usual, that they contribute disproportionately to the value of La Liga and should have the final say on their assets.
What exactly is a SAD and why is Florentino thinking of a change in structure?
Central to Perez's narrative at this weekend's General Assembly is a proposal to change the structure of Real Madrid into a Sports stock company (SAD). This change will supposedly safeguard the ownership model of Real Madrid fans. Let's dive a little into what this means.
The introduction of the SAD structure in Spain in 1990 was a response to the dire financial state of many professional sports clubs, especially football teams, during the 1980s. At the time, Spanish football clubs were typically organized as member-owned entities (sports clubs), without external shareholders or owners. While this model has supported a strong sense of community and fan involvement, it has also left clubs vulnerable to poor financial management and unsustainable debt.
In the late 1980s, it became clear that many clubs were struggling to balance their books. The popularity and commercialization of football grew significantly, and clubs were under increasing pressure to compete on the European stage. This led to reckless spending on player wages and transfer fees, often without the necessary financial planning. As the clubs accumulated large debts, some faced the risk of bankruptcy. Additionally, the lack of standardized financial controls made it difficult to regulate the sport or hold club managers accountable for mismanagement.
Mr. Florentino Perez Rodriguez, journalists that “no one knows” from Uganda or Namibia does not make them less professional because no one knows them (or does not know them).
Nor does it make them less people to exercise their right to vote if FIFA deems it appropriate because they are in… pic.twitter.com/3n7O2GkCNs
— AFRICA FUTBOLERA (@AfricaFutbolera) November 24, 2024
In response to this growing crisis, the Spanish government, led by the Ministry of Education and Culture (responsible for sport at the time), decided to intervene. The solution was to implement the SAD structure through the Sports law (Sports Law) of 1990. The purpose of the law is to professionalize the management of sports organizations, transforming the clubs into joint stock companies. This will ensure greater transparency, introduce corporate governance and establish financial accountability mechanisms.
Under the new system, clubs in the top two levels of Spanish football (La Liga and Segunda Division) were forced to become SAD unless they could demonstrate that they were financially solvent and well managed. A handful of clubs, including Real Madrid, FC Barcelona, Athletic Bilbao and Osasuna, meet these criteria and have been allowed to maintain their traditional structures. Most of the other clubs, however, passed on to SAD, with ownership passing from the fans to the shareholders.
This was a turning point in Spanish football. On the one hand, it imposed financial discipline on the clubs, helping to prevent insolvency and encouraging better management practices. On the other hand, it also marked a shift towards the commercialization of sport, with clubs increasingly seen as businesses rather than community organizations.
First lie of those concerning Laliga, (to be continued)
Florentino, you had a hand in the draft that was brought to the Council of Ministers. That project recognized only what the courts of law had already ruled as the rights of LaLiga in decisions… pic.twitter.com/5gwXFiI3zm— Javier Tebas Medrano (@Tebasjavier) November 24, 2024
Perez framed recent debates over changes to the club's structure as a necessary defense against “external threats” such as the controversial La Liga-CVC deal. According to Perez, these changes prevent La Liga president Javier Tebas from selling Real Madrid's share of the league's broadcast rights to CVC without the club's consent.
Currently, Real Madrid is a dirty property club, meaning that it is entirely owned by its members. Perez's proposal is framed as a protective measure, but it is still unclear how exactly it would save the club's broadcasting rights more effectively than the existing model. In fact, the membership structure of Real Madrid has undoubtedly been a bulwark against external pressures, including the CVC agreement.
Perez promises that the new SAD structure would still be 100% associate-owned, with actions linked exclusively to current members, but the lack of specificity on this plan leaves room for doubt. Even if his promises are kept, the transition to a SAD could open the door for third-party investment in the future, especially in times of financial instability – a risk that Perez did not fully address.
A flimsy excuse for a complex change?
The prospect of moving to a SAD is not inherently bad. Clubs such as Bayern Munich and Benfica have successfully implemented hybrid models where fans retain majority ownership while allowing private investment. Such a system could help Real Madrid raise capital and remain financially competitive without sacrificing its identity. However, Perez's approach has been anything but transparent. Framing the discussion only around the CVC business is external threatsavoids engaging in an honest conversation about the long-term implications of such a structural overhaul.
The members and fans of Real Madrid deserve more than vague promises and a narrative made to win easy approval. A detailed and transparent plan detailing how the proposed SAD structure will operate, how it will protect members' property, and also how it could evolve under future leadership is fair and necessary to make a well-informed decision. The real question, perhaps, is not whether Real Madrid should modernize its structure, but whether this transition is handled with the transparency and responsibility that the Real Madrid community deserves.
