Real Madrid wants a money-making stadium

Having a profitable stadium is of paramount importance to Real Madrid, because it knows that clubs have to find new sources of income in order to survive.Social Media for Business here

The club supports itself largely thanks to the TV rights money it receives, but with the new deal aimed at levelling the playing field for smaller clubs, Real Madrid and Barça are both set to receive a much smaller slice of the pie.

During last year, the club's operating income reached €154m. TV rights equated to 31% of this (€159m), only slightly exceeded by the marketing department with 32% (€164m). Earnings from commercial partners and the stadium were just 29% (€150m).

However, this is set for a radical change. Real Madrid needs a new stadium concept, one that generates money, not only on match days, but throughout the week.

"I want a stadium that doesn't look like a stadium and is profitable". Those were some of the words that Florentino Pérez used to inspire the Bernabéu's redevelopment. The idea is to build a multifunctional and innovative Bernabeu. The four candidates vying for the stadium's redevelopment have to present a project that carefully details how it plans to operate the new Bernabeu and how much money it will generate. The projects must specify, for example, how much its hotel will charge per night on match day or any other day, how much it will generate from its shopping centre, ticket sales, VIP area…

New York's Madison Square Garden makes more money from merchandising and sales on match days than from ticket sales. Real Madrid wants to imitate that strategy.Social Media for Business here

Link