Plan to introduce funds! TA: Real Madrid will vote on whether to allow outside investors to take shares

TA authored a detailed analysis of the club ownership reform plan recently proposed by Real Madrid Chairman Florentino.

As a club that has been wholly owned by members since 1902, Real Madrid plans to establish a new subsidiary by amending its articles of association to include existing members and minority shareholders who hold about 5% of the shares planned to be introduced.

This reform is primarily aimed at protecting the club from potential threats from both external and internal sources. The external ones include institutions and individuals such as UEFA and La Liga Chairman Tebas, while the internal ones involve incompetent managers who may appear in the future. At the same time, the reforms also focus on ensuring the long-term financial security of the club after Florentino steps down. Although Real Madrid is currently in a strong financial position, with annual revenue exceeding 1 billion euros, this initiative is intended to give real economic value to members' shares and permanently maintain the size of shareholding members at the current level.

Although the specific details have not yet been finalized, the initial idea is that newly introduced investors only have dividend rights and do not have voting rights. Decision-making power on all major matters of the club remains with the members. This move is not intended to make Real Madrid public or transform into an ordinary sports limited company SAD, but to circumvent the ownership instability issues that may arise from the SAD model.

Next, Real Madrid will hold a special general meeting of members to seek to decide on this historic change through voting. If the plan is passed, all adult members will participate in the final vote.

Industry insiders predict that given Real Madrid’s unparalleled reputation and wealth, once investment is opened, financial institutions and wealthy individuals eager to get involved will “line up” outside the Santiago Bernabeu Stadium.

However, existing partners are unlikely to participate in this equity subscription. In addition, this structural adjustment will be independent of Real Madrid's existing commercial company responsible for managing non-football activities at the Bernabeu, such as Taylor Swift concerts and NFL games, ensuring the club's flexibility in commercial operations.