Florentino Perez considers changing club statutes to allow sale of 49.9% of Real Madrid
The president of Real Madrid Florentino Perez he has a long chapter in the club's history, and his two spells in charge have fundamentally changed the entity at global level. It was thought that the renovation of the Santiago Bernabeu was his last big legacy move, but he is said to be considering a much bigger change before he leaves.
The 77-year-old patriarch is ready to run for at least one more term in office, and is exploring options to strengthen the club's position in a legal and financial sense. The sale of 11% of La Liga's TV rights for 50 years in the CVC agreement, and various moves by UEFA (mainly blocking the Superleague no doubt) have been categorized as attacks and hostile moves to the finance Perez believes. Real Madrid should have control.
Also, the increase in state ownership of clubs alongside billionaires in the Premier League has raised fears that Los Blancos could fall into what Perez believes are “the wrong hands”. The confidential explained that Perez is exploring two options, one of which involves increasing the rights of members, while modernizing the structure of the club, and ensuring that the club remains the property of the club itself – it is not clear exactly what this implies in this phase, but it would mean converting into a private company with members as shareholders.
The other would be a major change in Spanish football. Perez has discussed options with law firm Clifford Chance and investment banking firm Key Capital Partners, including the option of taking Real Madrid public. JP Morgan and banker John Hahn are also aware of Perez's intentions. Ultimately, this second option involved getting members' approval to put up to 49.9% of the club up for sale, but capping the amount of the club that could be sold there, so that members would still remain in control .
The choice of the latter would be a major change in the ownership model of the club, and even if it could take it into a different territory legally, it would mean giving up a large part of the club to interested investors, instead of members. Theoretically, every member has an equal voice in the future of the club, where opening the door to investors will put an end to this, although the members have the last word on major decisions.
To do so, Perez should put the changes to a vote, but in recent years, the membership has barely challenged his intentions.
