DG1/481-I-M FC BARCELONA: CHANGING THE RULES OF THE GAME Original text by David Allen and Raúl Eguía, Instituto de Empresa. Original version, October 2004. Published by the Publications Department of Instituto de Empresa. María de Molina 13, 28006 Madrid, Spain. © 2004 Instituto de Empresa. Total or partial reproduction prohibited without written permission from Instituto de Empresa. "The club was in a dramatic situation of social break-up. Our candidature to the presidency proposed a total change that was safe and innovative. A real change in the management model. We had analysed the problem, the various situations that could arise and how to deal with them, as well as how to execute the decisions we had taken and how to make them compatible. However, we did not stop at the analysis; we also prepared and executed very ambitious projects. It was an unorthodox situation. We have done what management manuals recommend you should never do under any circumstances. And we have done it in full awareness, since we were faced with an exceptional situation. The key has been the capacity of the people in the everyday routines and work of the entity The interesting part is that we have managed to change well and we have also generated innovation with regard to the management model of entities. This is something that makes it a reference point1." Joan Laporta gave this description of the management model implemented in his first year as chairman of FC Barcelona. The crisis in which the club found itself — with an increasing debt and with no titles from competitions are several seasons — led a group of young professionals to join together as an independent candidature and present themselves for election to the presidency. They proposed a detailed project for change and against all odds the affiliated supporters of the club gave them the highest support that has ever been given to any candidate in 104 years. They were voted in and they implemented a new management model as a solution to the break-up that existed in the three basic pillars of the club: sports management, economic management and social management. One year later, FC Barcelona is one of the firm candidates for leading the way in world football. In this practical case, the protagonists themselves describe the challenges and the key factors that have helped them position Barça among the top five football clubs in the world in the term of only one year. ELEFANT BLAU (the Blue Elephant): THE EMBRYO OF THE TEAM WHICH WAS TO FRONT THE CHANGE AT BARÇA On 6 May 1978, Josep Lluís Núñez was voted as chairman of FC Barcelona with a slogan for renewal. His term of office lasted 22 years. During this time, the club underwent notable growth, financial correction and significant social expansion (a considerable increase in the number of affiliated supporters and supporters’ clubs) and increased assets — the opening of the Miniestadi (see annexe 1) and successive remodelling of the stadium. The club also had a sports record which took FC Barcelona to be the best club in the world in 1997 according to the IFFHS (International Federation of Football History and Statistics). Of these 22 years, special mention must be made of the period in which the so-called dream team (1990-1994) managed to win four Spanish League Championships in 1 Interview with Joan Laporta (17 February 2004). © Instituto de Empresa. 1 | Instituto de Empresa F.C. BARCELONA: CHANGING THE RULES OF THE GAME DG1/481-I-M a row, together with the European cup, under Johann Cruyff (ex player at the club and considered as one of the best players in the history of football) as manager. However, at the end of the so-called Núñez era the directors of BARÇA HISTORY (1899-1978) the club were not popular with all the affiliated supporters. In December 1997, a group of them, under the name of Elefant FC Barcelona was founded on 29 Blau (see annex 3), launched the official procedures for November 1899 by Hans Gamper, a presenting a motion of censure against the club's chairman, Swiss businessman. The ground known as Les Corts was opened on Josep Lluís Núñez. Elefant Blau was led by Joan Laporta, a 20 May 1922. It was called "the young lawyer who had formed part of the candidature of Ángel Cathedral of football" and was a Fernández in the last elections to chairman of the club in June magnificent stadium with an initial 1997. Elefant Blau criticised the following: capacity for 30,000 spectators. It was also the main stage for the growth of the club and represented its golden "The scorn shown by the club’s directors towards the democratic age (1919-1929). In 1924, FC culture that has always existed in Barça, the erratic sports Barcelona had 12,207 affiliated decisions they have taken, which have led to great economic supporters. Years later, Barça won damage and the lack of information about the real situation of the the first edition of the Spanish league clubs economy.2" (1928-1929). The outbreak of the civil war in 1936 took the club on a magnificent tour around Mexico and Elefant Blau, the group which opposed Núñez, had to obtain the United States, which saved its 4,600 signatures for the motion of censure to prosper. This did economy but meant the loss of half of not happen until March 1999, when the resignation of chairman the squad, who remained exile in Núñez was again requested owing to the debts of the club. Joan Mexico and France. The year 1950, with 26,300 affiliated supporters, saw Laporta's argument was as follows: the arrival of the first crack or star: Ladislao Kubala. Between 1951 and "This action must be completed as quickly as possible to prevent 1953, Barça won everything in sight. the economic crisis we believe affects the entity from worsening. This winning period included the At the end of the 1995-1996 season, the club had 5,000 million golden season of 1951-1952, when the club won 5 cups: the League, the pesetas in its cash account [€30 million], and now it has a debt of Cup, the Latin cup, the Eva Duarte 15,000 million pesetas [€90 million]. We believe that this debt and the Martini Rossi. Ladislao has possibly been created intentionally in order to modify the Kubala and his sporting triumphs future management model of the club. If the debt continues, the meant that Les Corts needed to be club might lean towards a situation which the board itself will expanded and the club opened the doors to the Camp Nou in 1957. The seek to correct in order to explain and justify the change in the new stadium, which had an initial model. In other words, the change from a sports association to 3 capacity for 80,000 spectators, was an anonymous sports association ." the setting for the enthusiasm of a team that had the support of 49,000 Although this time it obtained more than the signatures it needed affiliated supporters. In 1971, FC Barcelona won the cup and in October to prosper, Núñez beat the motion with the support of 24,863 of the Palau Blaugrana and the ice- the 40,327 affiliated supporters who voted. This gave him an skating rink were opened. Two years advantage of more than 10,000 votes with regard to the later, in 1973, the signing of the Dutch opposition platform led by Joan Laporta, which obtained 14,358 player Johann Cruyff gave rise to the votes in favour of the motion4. Alfons Godall, an affiliated famous football machine which won the league in 1973-1974. With 69,566 supporter of Elefant Blau, explains the reason for the affiliated supporters, the club was now independent candidature of Joan Laporta: one of the most powerful sports entities in the world and celebrated its "We launched a motion of censure against the directors in March 75th birthday. One of the most 1999 and received 14,000 votes in favour. That was the international Catalonian artists, Joan Miró, painted the poster to beginning of the end of an era which had lasted too long. commemorate this important date. According to the principle of democratic hygiene, a board of directors and the chairman cannot remain in their posts for 20 years. This creates bad habits, defects and corruption, which is not good. With Elefant Blau, we set down the bases of what was going to be the action in the future: the presentation of an alternative candidature in the elections5." 2 El Mundo (12 December 1997). 3 El Mundo (16 March 1999). 4 El Mundo (3 February 2003). 5 Interview with Alfons Godall (5 July 2004). © Instituto de Empresa. 2 | Instituto de Empresa F.C. BARCELONA: CHANGING THE RULES OF THE GAME DG1/481-I-M One year later, in 2000, Josep Lluís Núñez resigned and elections were called for chairman of Barça. Two candidates stood up: Joan Gaspart (the former vice-chairman under Josep Luis Núñez) and Lluís Bassat (a publicist who owned Bassat & Ogilvy). Joan Laporta, leader of Elefant Blau, also stood for election as part of the candidature of Bassat. In the words of Alfons Godall: "In 2000, Núñez resigned and elections were called. Joan Laporta wanted to stand with his own candidature, but he was advised not to do so because it was too soon. The vote on the motion of censure (promoted earlier by Elefant Blau) was the reason why the media reacted against his candidature. Therefore, we stood as part of the candidature of Lluís Bassat, who supposedly represented the change.