MADRID: Real Madrid president Florentino Perez has conceded that being the world’s richest club is not enough to compete on a level financial playing field with the new generation of cash-rich clubs sich as those in the Premier League and Gulf state support.

That admission was behind his statement to members at Madrid annual meeting that he wants to create a subsidiary which would allow external investors to buy a stake of around five per cent in the record 14-times European champions. The proposal will go before an extraordinary meeting as demanded for a change in statutes.

Madrid, also the record champions of Spain, lead the Spanish league after a 2-2 draw a Elche courtesy of a late equaliser from Jude Bellingham.

Perez said the membership model would remain intact and that being a member would now have “a real and tangible value.”

He told members: “If someone is willing to invest significant amounts of money for a symbolic stake, this is the greatest demonstration of Real Madrid’s value.

“This investor – or investors – must respect our values, contribute to the growth of the club and help us to protect our assets from external attacks.”

Madrid, like Spanish rivals Barcelona, Bilbao and Osasuna, ae run on a membership model. Some 2,000 of the club’s members are selected as delegates to the annual meeting, where they can elect the club’s president, review annual accounts and vote to change their statutes.

An initiative to open the ownership to outside investors would follow a deal by US fund Apollo to become the majority shareholder in derby rivals Atletico Madrid, the latest venture by private equity firms attracted by football’s revenue streams.

Billion valuation

Real are the only club in world football to have recorded revenues of more than 1billion euro, according to Deloitte. Revenue for the 2024-25 season grew to 1.19bn euro, while net revenue after tax increased by 56pc to 24.3m euro.

At $6.75bn the club have the highest value in global football, according to business magazine Forbes.

But Perez has said the membership model holds them back, especially when competing in the transfer market against rival European clubs such as Paris Saint-Germain, Manchester City or Chelsea, owned by private equity, billionaires or oil-rich states.

Madrid have led the push to create a European Super League, with Perez arguing it would be a way for the club to stay competitive.

At last year’s assembly, Perez broached the idea of holding a referendum on the reorganisation of the club’s ownership structure that would “protect us from threats we face” – while stressing the club would continue to be owned by its members.

Madrid already have deals in place with US private equity firms. In 2022, they reached a 360m euro deal with Sixth Street for rights to develop and operate new businesses over 20 years at the Estadio Santiago Bernabeu. – with REUTERS

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