The galácticos project is where the Real money is
The Express Tribune takes a look at how Real Madrid can afford to continue buying the best players
KARACHI:
After finally claiming the La Decima in the summer, Real Madrid’s transfer policy has come under scrutiny once again as they have allowed two of last year’s mainstays – Angel Di Maria and Xabi Alonso – to leave the club.
High profile signings James Rodriguez and Toni Kroos have come in to replace the outgoing duo but have had mixed success so far. Florentino Perez’s second galácticos project is now following the same worrying trend as the first one.
Real’s talisman, Cristiano Ronaldo, is being reported to be unsettled after chief suppliers Mesut Ozil and Di Maria were allowed to leave one after the other in consecutive close seasons. “I have my strong opinions, but I can’t always say what I think. Otherwise, tomorrow it would be on the front pages and I don’t want that,” the Portuguese said regarding Real’s need to obsessively sell in order to buy the best. So where did it all start?
The first galácticos project
Real’s galácticos transfer policy of buying the biggest stars in the world can be traced back to the 1950s when club president Santiago Bernabéu built a team of global superstars, including the legendary Alfredo Di Stéfano and Ferenc Puskás; the two main catalysts behind Real’s continental dominance in the early years of the European Cup.
However, the term was coined in more modern times, and its modern version started with Florentino Perez’s audacious promise of bringing in Luis Figo, the jewel in the crown of bitter rivals Barcelona, to Real if he was to win presidency. The promise was too good to turn down and Perez was elected president in 2000.
The Spanish billionaire was good on his promise and in July 2000, Figo made the controversial move from Barcelona as Perez matched his £37 million buyout clause.
The first galáctico had arrived.
Figo went on to score 14 times that season and won the Ballon d’Or, which is awarded for the calendar year and therefore also included his performances at Barcelona, and the FIFA World Player of the Year.
Encouraged by Figo’s success, the newly crowned La Liga champions broke the transfer record again next summer. In came Zinidine Zidane from Juventus for £45.6 million; an eye-popping amount for a 29-year-old midfielder.
The blueprint was now laid down and Real’s message to the rest of the footballing world was clear; they were out to buy the best and were willing to break the bank to get them.
Like Figo, Zidane also proved to be a big hit at the club and it was his sublime left-footed volley in the Champions League final against Bayer Leverkusen that brought the Spanish giants to within touching distance of La Decima as they claimed their ninth Champions League. Zidane continued to be a massive success on the pitch, also winning the FIFA World Player of the Year in 2003.
However, there was more to the two signings than their footballing exploits, and Perez soon realised this. The two global stars increased Real’s marketing potential and the club’s brand and image grew with the galácticos.
Luis Ronaldo was signed the next year, and David Beckham the one after that. By now, it was clear that the signings, especially that of Beckham, were for more than just footballing reasons. Beckham was signed despite the presence of Figo, who was a better right winger but was not as marketable. The England man was responsible for more than half of Real’s shirt sales during his first year and earned the club nearly £60 million in shirt sales during his time at Real.
The end of the first era
The fact that Beckham was signed when the team cried out for defensive reinforcements as Real were forced to field substandard defenders such as Míchel Salgado and Iván Helguera was further testimony to the fact that the galácticos were more than just footballers; they were marketable assets, and hence justified their exorbitant transfer prices.
However, success on the field diminished as marketability was prioritised over footballing talent. Strikers Michael Owen and Robinho were brought in, and defensive reinforcements constantly ignored, and the lack of balance cost Real as they failed to make much progress in the Champions League and slowly saw Barcelona – who had the exact opposite strategy and relied on home grown players – emerge as the stronger force in both Europe and Spain.
Having the best players in the world also meant having the biggest egos in the dressing room and that led to several casualties, including defensive lynchpin Claude Makélélé. The most high-profile casualty, however, was of manager Vicente Del Bosque, who was sacked in 2003 after falling out with players and Perez, despite winning the Champions League the previous season.
Off the field, Real grew stronger, capturing the Asian market thanks to the global appeal of their stars and overtook Manchester United to become the biggest club in the world in the 2005-06 season as revenue continued to grow.
For the Madridistas, it was not enough though, even if the lopsided team did lend itself to the attacking football that they preferred. In 2006, after being dumped out of the Champions League, Perez was replaced by Ramon Calderon. The first galácticos era ended but it had forever changed the way Real did business.
Under Calderon, the same trends continued to emerge; Barcelona’s stock rose on the pitch, while Real’s rose off it. The Catalonian’s historic treble in 2008 and Calderon’s resignation as president due to corruption charges in January 2009 led to the return of Perez.
Galácticos 2.0
Just like he did with his first election campaign, Perez promised to bring in an established global star if he was made president; this time it was Kaka.
Once again, he delivered. Perez’s Real broke the transfer record for the third time, bringing in Kaka for a record £57 million, and the second galácticos era began. The record did not last long, however, as Cristiano Ronaldo was bought for £80 million two days later. Once again, both signings proved to be an instant hit off the pitch, with shirt sales going up dramatically and the ever-growing revenue from Ronaldo’s shirt sales has by now eclipsed his transfer fee.
However, success on the pitch continued to prove elusive as statement signings continued to be preferred over stability.
Perhaps the biggest indictment of the galácticos project came in 2010 when two Real rejects – Arjen Robben and Wesley Sneijder – inspired Bayern Munich and Inter Milan to return to the Bernabéu to contest the Champions League final. While it was Sneijder who lifted the trophy that day at his old stomping ground, the Dutch duo’s performance in the Champions League provided a damning assessment of a project that needs to continuously chop at its own squad to fulfil Perez’s obsessive desire of buying the biggest stars.
Last year, Real became the first team to break the €500 million revenue barrier, boosted by shirt sales of the first ever €100-million-man Gareth Bale, who like previous record-signing Zidane, scored the winner in the Champions League final in his first year at the club. But despite finally winning the La Decima, Real have shot themselves in the foot and now look considerably weaker than the team that lifted the cup in May. Carlo Ancelotti had built a team that may have been able to dominate Europe for years to come but his side are struggling as the new players struggle to adapt.
Real’s revenue has increased even further this year, especially due to the added windfall that comes with winning the Champions League. Add to that the fact that Barcelona and Real rake in more money in TV rights than the rest of the 18 La Liga teams and it is easy to see why Real were listed as the biggest club in the world by Forbes for the 10th consecutive season.
However, concerns continue to grow over Real’s willingness to spend as, even though the transfer fees are often recouped, paying the wages of a group comprising the world’s biggest stars takes its toll. Real’s total debt stands at around €600 million, with short-term debt of €338 million being €100 million more than current assets. In other words, it means there is an increasing problem of liquidity at the capital club; a problem that forced them to sell Ozil and Di Maria among others.
As it stands, Real’s latest galáctico is James Rodriguez, who was signed after he was thrust into the global limelight for his exploits at the World Cup, where he won the Golden Boot. Rodriguez’s shirt sales in the first two days after his transfer amounted to an incredible 345,000; a revenue of over £20 million, nearly a third of his total transfer money. Just like previous galácticos before him, the signing of Rodriguez was a success even before the player made his debut.
The galácticos model has its fair share of critics but they are overshadowed by its admirers and it has brought Real considerable success both on and off the pitch. As things stand, like it or not, the model is here to stay.
After finally claiming the La Decima in the summer, Real Madrid’s transfer policy has come under scrutiny once again as they have allowed two of last year’s mainstays – Angel Di Maria and Xabi Alonso – to leave the club.
High profile signings James Rodriguez and Toni Kroos have come in to replace the outgoing duo but have had mixed success so far. Florentino Perez’s second galácticos project is now following the same worrying trend as the first one.
Real’s talisman, Cristiano Ronaldo, is being reported to be unsettled after chief suppliers Mesut Ozil and Di Maria were allowed to leave one after the other in consecutive close seasons. “I have my strong opinions, but I can’t always say what I think. Otherwise, tomorrow it would be on the front pages and I don’t want that,” the Portuguese said regarding Real’s need to obsessively sell in order to buy the best. So where did it all start?
The first galácticos project
Real’s galácticos transfer policy of buying the biggest stars in the world can be traced back to the 1950s when club president Santiago Bernabéu built a team of global superstars, including the legendary Alfredo Di Stéfano and Ferenc Puskás; the two main catalysts behind Real’s continental dominance in the early years of the European Cup.
However, the term was coined in more modern times, and its modern version started with Florentino Perez’s audacious promise of bringing in Luis Figo, the jewel in the crown of bitter rivals Barcelona, to Real if he was to win presidency. The promise was too good to turn down and Perez was elected president in 2000.
The Spanish billionaire was good on his promise and in July 2000, Figo made the controversial move from Barcelona as Perez matched his £37 million buyout clause.
The first galáctico had arrived.
Figo went on to score 14 times that season and won the Ballon d’Or, which is awarded for the calendar year and therefore also included his performances at Barcelona, and the FIFA World Player of the Year.
Encouraged by Figo’s success, the newly crowned La Liga champions broke the transfer record again next summer. In came Zinidine Zidane from Juventus for £45.6 million; an eye-popping amount for a 29-year-old midfielder.
The blueprint was now laid down and Real’s message to the rest of the footballing world was clear; they were out to buy the best and were willing to break the bank to get them.
Like Figo, Zidane also proved to be a big hit at the club and it was his sublime left-footed volley in the Champions League final against Bayer Leverkusen that brought the Spanish giants to within touching distance of La Decima as they claimed their ninth Champions League. Zidane continued to be a massive success on the pitch, also winning the FIFA World Player of the Year in 2003.
However, there was more to the two signings than their footballing exploits, and Perez soon realised this. The two global stars increased Real’s marketing potential and the club’s brand and image grew with the galácticos.
Luis Ronaldo was signed the next year, and David Beckham the one after that. By now, it was clear that the signings, especially that of Beckham, were for more than just footballing reasons. Beckham was signed despite the presence of Figo, who was a better right winger but was not as marketable. The England man was responsible for more than half of Real’s shirt sales during his first year and earned the club nearly £60 million in shirt sales during his time at Real.
The end of the first era
The fact that Beckham was signed when the team cried out for defensive reinforcements as Real were forced to field substandard defenders such as Míchel Salgado and Iván Helguera was further testimony to the fact that the galácticos were more than just footballers; they were marketable assets, and hence justified their exorbitant transfer prices.
However, success on the field diminished as marketability was prioritised over footballing talent. Strikers Michael Owen and Robinho were brought in, and defensive reinforcements constantly ignored, and the lack of balance cost Real as they failed to make much progress in the Champions League and slowly saw Barcelona – who had the exact opposite strategy and relied on home grown players – emerge as the stronger force in both Europe and Spain.
Having the best players in the world also meant having the biggest egos in the dressing room and that led to several casualties, including defensive lynchpin Claude Makélélé. The most high-profile casualty, however, was of manager Vicente Del Bosque, who was sacked in 2003 after falling out with players and Perez, despite winning the Champions League the previous season.
Off the field, Real grew stronger, capturing the Asian market thanks to the global appeal of their stars and overtook Manchester United to become the biggest club in the world in the 2005-06 season as revenue continued to grow.
For the Madridistas, it was not enough though, even if the lopsided team did lend itself to the attacking football that they preferred. In 2006, after being dumped out of the Champions League, Perez was replaced by Ramon Calderon. The first galácticos era ended but it had forever changed the way Real did business.
Under Calderon, the same trends continued to emerge; Barcelona’s stock rose on the pitch, while Real’s rose off it. The Catalonian’s historic treble in 2008 and Calderon’s resignation as president due to corruption charges in January 2009 led to the return of Perez.
Galácticos 2.0
Just like he did with his first election campaign, Perez promised to bring in an established global star if he was made president; this time it was Kaka.
Once again, he delivered. Perez’s Real broke the transfer record for the third time, bringing in Kaka for a record £57 million, and the second galácticos era began. The record did not last long, however, as Cristiano Ronaldo was bought for £80 million two days later. Once again, both signings proved to be an instant hit off the pitch, with shirt sales going up dramatically and the ever-growing revenue from Ronaldo’s shirt sales has by now eclipsed his transfer fee.
However, success on the pitch continued to prove elusive as statement signings continued to be preferred over stability.
Perhaps the biggest indictment of the galácticos project came in 2010 when two Real rejects – Arjen Robben and Wesley Sneijder – inspired Bayern Munich and Inter Milan to return to the Bernabéu to contest the Champions League final. While it was Sneijder who lifted the trophy that day at his old stomping ground, the Dutch duo’s performance in the Champions League provided a damning assessment of a project that needs to continuously chop at its own squad to fulfil Perez’s obsessive desire of buying the biggest stars.
Last year, Real became the first team to break the €500 million revenue barrier, boosted by shirt sales of the first ever €100-million-man Gareth Bale, who like previous record-signing Zidane, scored the winner in the Champions League final in his first year at the club. But despite finally winning the La Decima, Real have shot themselves in the foot and now look considerably weaker than the team that lifted the cup in May. Carlo Ancelotti had built a team that may have been able to dominate Europe for years to come but his side are struggling as the new players struggle to adapt.
Real’s revenue has increased even further this year, especially due to the added windfall that comes with winning the Champions League. Add to that the fact that Barcelona and Real rake in more money in TV rights than the rest of the 18 La Liga teams and it is easy to see why Real were listed as the biggest club in the world by Forbes for the 10th consecutive season.
However, concerns continue to grow over Real’s willingness to spend as, even though the transfer fees are often recouped, paying the wages of a group comprising the world’s biggest stars takes its toll. Real’s total debt stands at around €600 million, with short-term debt of €338 million being €100 million more than current assets. In other words, it means there is an increasing problem of liquidity at the capital club; a problem that forced them to sell Ozil and Di Maria among others.
As it stands, Real’s latest galáctico is James Rodriguez, who was signed after he was thrust into the global limelight for his exploits at the World Cup, where he won the Golden Boot. Rodriguez’s shirt sales in the first two days after his transfer amounted to an incredible 345,000; a revenue of over £20 million, nearly a third of his total transfer money. Just like previous galácticos before him, the signing of Rodriguez was a success even before the player made his debut.
The galácticos model has its fair share of critics but they are overshadowed by its admirers and it has brought Real considerable success both on and off the pitch. As things stand, like it or not, the model is here to stay.