Real Madrid – Barcelona: Business Strategy V
Occasional Paper OP no 06/12-E June, 2006 REAL MADRID – BARCELONA: BUSINESS STRATEGY V. SPORTS STRATEGY, 2000-2006 Kimio Kase Sandalio Gómez Ignacio Urrutia Magdalena Opazo Carlos Martí IESE Occasional Papers seek to present topics of general interest to a wide audience. IESE Business School – University of Navarra Avda. Pearson, 21 – 08034 Barcelona, Spain. Tel.: (+34) 93 253 42 00 Fax: (+34) 93 253 43 43 Camino del Cerro del Águila, 3 (Ctra. de Castilla, km 5,180) – 28023 Madrid, Spain. Tel.: (+34) 91 357 08 09 Fax: (+34) 91 357 29 13 IESE Business School-University of Navarra - 1 Copyright © 2006 IESE Business School. REAL MADRID – BARCELONA: BUSINESS STRATEGY V. SPORTS STRATEGY, 2000-2006 Kimio Kase* Sandalio Gómez** Ignacio Urrutia*** Magdalena Opazo**** Carlos Martí**** Abstract Over the period 2000-2006, Real Madrid Football Club and Barcelona Football Club pursued different strategies and achieved different results. In the latter half of the period (in contrast to the first half), Real Madrid won no trophies but was crowned the richest club in the world1. Meanwhile, after a disconcerting start, Barcelona won a UEFA Champions League and two La Liga titles, though it struggled financially. By analyzing the two clubs’ strategies and their financial and sporting performance over the chosen period we explore the different ways in which sports organizations can succeed, and how their success can be measured. The purpose of this study is to answer the following questions: What strategies did Real Madrid and Barcelona adopt to bring about this reversal of fortunes in a few short years? What variables explain the difference in outcomes? Are there any differences in their business and sports strategies? We use a matrix to analyze and relate the clubs’ financial and business strategy to their sports strategy.
[Show full text]