Real Madrid President Florentino Pérez Confirms Plans To ...

Florentino Perez is president of Real Madrid.

Spanish soccer giant Real Madrid is set to undergo major change off the field as club president Florentino Pérez has confirmed that he plans to propose to members that the club changes its current method of ownership and structure.

At present, the club is owned by its 93,920 members, all of whom share equal ownership over the organization. Members inherit the possibility to be a ‘socio’, granting the status great prestige and exclusivity, as well as influence over the future of the club.

However, it is now expected that Pérez could put forward a new approach, which may involve taking Real Madrid into private ownership in order to facilitate investments from outside the club’s members. It would also convert current members into shareholders, who would see their influence on decision-making significantly reduced in most cases.

Speaking at the club’s annual meeting of members, Pérez explained that, "our club must have an organizational structure that protects us as an institution and that also protects all of us as owners of Real Madrid". He went on to add that members should "rest assured that we will do everything necessary to ensure that this club remains the property of its members, as it has been for our 122 years of history, ultimately, so that no one can take away our financial assets".

This preceded his confirmation that "we will bring to this Assembly a proposal for the reorganization of the club’s corporate structure that will clearly ensure our future, protect us from the threats we face and, above all, guarantee that the members are the true owners of our club, the real owners of our economic assets and in their own right".

The move could prove controversial. Some longstanding members are unlikely to be content with the move to reduce their already dwindling influence, while it will also break with tradition to allow external investment.

The president also addressed concerns about the current state of the club’s economical situation following a major investment in the Estadio Santiago Bernabéu, but Pérez was concise in his answer, insisting that “our business is to have the best players in the world and win European Cups, that is our real business".

He then laughed off suggestions that the club could be struggling financially, saying, "some people say we are going to go bankrupt, but how are we going to go bankrupt? If we don't win the European Cup maybe? Well, if we don't win the European Cup, we won’t go bankrupt either".

Pérez also went in to more detail about the club’s other activities, such as the building of a car park and concerts at the club’s stadium, saying, "almost all of the club's revenue comes from soccer. All the other things we do are also for image. Look, nobody builds a parking lot for 25 games a year... Some people say we want to do concerts to get rich. But nobody makes money. The one who sings, who sings well, gets rich".

The president also explained more detail about the relationship with arch rivals FC Barcelona, as Pérez said, “Barça and Madrid have to help each other, I say that with total sincerity".

He went on to explain that "we have to think that it is a club that is among the biggest in the world. Why would we get angry?" as he addressed the importance of the two organizations working together to mutually benefit one another.