Real Madrid is one of the few Elite Club which isn’t owned by a specific person or an organization. Real Madrid is owned by ‘Real Madrid Socios‘.
Socios is a group of individuals who own the club and are entitled to vote and to ticket advantages. There are about 90,000 socios in Real Madrid. You ought to be guaranteed two existing partners and pay an annual subscription of €123 to become a Real Madrid Socio (not necessary until you are 50+ years a Socio).
The club directors are Socios, who are elected by the others and make important decisions. In order to be a director, a 15 percent club budget deposit must be guaranteed every season, and that liability can be exercised in case of a financial crisis.
However, Except when voting in the presidential election or for the board of directors, the general Socios has little power within the club.
Real Madrid is one of Socios’ four Spanish clubs, which also include FC Barcelona, Athletic Bilbao, and CA Osasuna.
How is President Chosen for Real Madrid?
The president is chosen via elections held in subsidiary supporters’ groups called soci, whereas the supporters with voting rights are called socios.
According to these rules, the club’s president is a socio who is elected for a specific period of time and is not allowed to invest his own money in the club as an owner would.
Currently, Florentino Perez is president of Real Madrid. He’s been president for Real Madrid for consecutive 12 years from 2009 AD. He won his candidacy without any opposition in 2009, 2014 as well as 2021. He also president of Real Madrid from 2000 to 2005.
Santiago Bernabéu de Yeste, a player to included in the list of Real Madrid legend, is also on the list of greatest presidents for Real Madrid, having served as president for more than 34 years, from 1943 to 1978.
The profits and Expenditures
As Real Madrid is not owned by a single individual or corporation. It works in the same way as a cooperative society, with members owning a share of the Club’s voting rights. Unlike a publicly-traded company, where shareholders have ownership and voting rights.
Real Madrid invests the majority of their earnings in future projects and facilities like Training Center, Stadiums, Maintainance e.t.c
Real Madrid is restricted to spending only what they earn, which is not a major issue given that they are consistently one of the top three revenue-generating clubs in the world, alongside Barcelona and Manchester United.
Benefits of being a Club ran by Socio
There are numerous benefits as well as drawbacks to having a club runed by Socio. Let’s start with the benefits.
In comparison to public clubs, a non-public club is governed by a not-for-profit organization, which means that loans have lower interest rates and can be arranged more quickly.
Being a Socio also comes with a tag that you can wear around ( Imagine owning 0.001% of the world’s largest football club) and, while your influence isn’t great, you do get a say in important events like elections.
The club is also safe because it can’t be bought, even if someone has the money, it can’t be used as a scapegoat to clear debts, and it can’t be dismantled.
Drawbacks of being a Club ran by Socio
Socio’s club is unable to hold fundraisers in the same way that a public club can. In the event of financial difficulties, it is also unable to sell its shares for cash.
Real Madrid must spend what they earn from matchday tickets, TV rights, merchandise, sponsorship deals, and other sources of revenue because they are not owned.
As only those who can guarantee 15% of the club’s budget can become directors, the club is controlled by the wealthy, not necessarily by those who are capable of making good decisions.