[How About This Book] The Secret Behind Staying on Top Even After Letting Ronaldo Go

'The Real Madrid Revolution'
Off the Pitch, Real Madrid CF
Forbes Values the Club at 9 Trillion Won
No. 1 for Three Consecutive Years, Top Spot Nine Times in Twelve Years
Deloitte Football Money League's "Highest-Earning Club"
A Wealthy Club? A Club Owned by Its Members
Member Ownership... Operations Rooted in Fan Culture
Financial Principles Take Precedence Over Superstars
The Source of Stability During the Pandemic

When the global sports industry plunged into a sharp recession due to the pandemic, most professional clubs were forced to shoulder massive deficits because of declining attendance and reduced broadcasting rights revenue. However, there was an exceptional organization that maintained a surplus during this crisis and drew international attention in the sports world: the prestigious Spanish football club Real Madrid CF.

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Real Madrid has already secured a unique position in football history, boasting a record 15 UEFA Champions League titles and 36 La Liga championships. The title of "Best Football Club of the 20th Century," awarded by FIFA, further symbolizes its stature. Yet, recent interest in Real Madrid has focused more on its management performance than its trophy count. Forbes named Real Madrid the most valuable football club in the world in 2024, estimating its value at around 9 trillion won. This marks its third consecutive year at the top and the ninth time in the past twelve years. That same year, Real Madrid was also recognized as the highest-earning club in the Deloitte Football Money League.

This book analyzes the factors behind such achievements. It starts from the reality that the football industry is no longer confined to the "game" itself but has expanded into entertainment and brand business. Recently, the football world has become closely intertwined with massive capital, including government-affiliated institutions, private equity funds, and the multi-club ownership (MCO) model. As the industry has transformed into one that requires enormous funding, it has become difficult to survive through traditional methods alone.

The author, Steven G. Mandis, questions the data-driven management that has been regarded as the textbook for sports management since "Moneyball," through research and analysis. He argues that Real Madrid's formula for success has prioritized strategies aligned with fan culture and values, from player recruitment to financial management, rather than relying solely on data. He interprets the club's organizational culture-difficult to measure in numbers-as a powerful source of competitive advantage.

This culture is also closely tied to Real Madrid's unique ownership structure. Unlike most professional sports teams, which are owned by billionaire individuals or corporations, Real Madrid has been owned by its members, known as "socios," since its founding in 1902. Fans function not only as consumers but also as stakeholders who participate in oversight, and they can even vote to remove the club president if necessary.

The book's most symbolic example is the club's separation from Cristiano Ronaldo in 2018. At the time, Ronaldo remained one of the world's top players, but his demand for a salary increase conflicted with the club's financial principles. Real Madrid let him go, accepting short-term losses in team strength, and the author interprets this as "prioritizing the system over the superstar." He analyzes that this principle contributed to the club's financial stability during the pandemic.

Real Madrid's management approach is also a subject of academic study. Harvard Business School has used the club's financial reforms and global brand strategy under President Florentino Perez as a case study. The mission, established based on fan surveys-"to become a multicultural club respected worldwide through fair success and the pursuit of excellence"-has since become the standard for all decision-making.

Real Madrid is also highly responsive to changes in media consumption habits among younger generations. Sports is no longer just a field for competition with other clubs; it now directly competes with the content industry. Real Madrid is strengthening its structure to connect directly with fans through in-house content production and digital platforms, aiming to expand as a global entertainment brand.

The book highlights the vulnerability of excessive short-term investment strategies through the reality that newly promoted Premier League clubs are often relegated again in a short period. In contrast, the Real Madrid case emphasizes that choices grounded in long-term value and financial principles lead to sustainable competitiveness.

Ultimately, this book offers an engaging story for football fans as well as insights into modern organizational management. It demonstrates that culture-though difficult to measure-is a core element that unites organizations, and such principles can be applied beyond sports to companies and society as a whole. Real Madrid's success is convincingly shown to be the result of a structure designed around values and principles, not mere chance.

The Real Madrid Revolution | Written by Steven G. Mandis | Translated by Kim Insu | Say Korea | 496 pages | 35,000 won