Real Madrid's Game-Changing Ownership Proposal

Real Madrid plans to hold an extraordinary general meeting to vote on new statutes, hinting at allowing private investors to own up to 10% of the club. This initiative comes as the club aims to remain competitive against billionaire-owned European rivals and follows the private equity trend in football.

Real Madrid, the world's most valuable football club, is contemplating a significant shift in its ownership structure as President Florentino Perez announced plans for a crucial general meeting. During the annual meeting, Perez revealed intentions to propose statutory reforms aimed at enabling the club to meet emerging challenges over the next 50 years. This proposal could potentially open the door for private investors to own up to a 10% stake in the club, aligning with trends that have seen other clubs engage with private equity firms.

Such changes might redefine Real Madrid's current membership-based model, which it shares with clubs like Barcelona and Athletic Bilbao. With 2,000 members acting as delegates to influence club affairs, the proposed reforms would grant the club greater financial leverage to stay competitive. Notably, Real Madrid remains the only football club worldwide to achieve revenues exceeding 1 billion euros, making it a lucrative prospect for investors.

Perez's proposal hints at addressing competitive disparities, particularly against privately-funded clubs such as Paris St Germain and Manchester City. Although details are scarce, this initiative aligns with past moves to form a European Super League that promises sustained competitiveness. Real Madrid, already in partnership with U.S. equity firms like Sixth Street, faces the necessity of modernizing its ownership structure to pursue and integrate upcoming opportunities.

(With inputs from agencies.)