http://www.bbc.co.uk/news/business-21168666
This article talkes about the revenues of the top soccer clubs, and Real Madrid of Spain tops the list for the eight year in a row crossing the 500 million Euro mark for the first time. The article mentions that the Spanish giants have showed a lot of revenue growth. Their revenue in 1996-97 season was 85 million Euros. I wonder if these numbers have been adjusted for inflation because I'm sure that Real Madrid hasn't actually grown that much since 1997. Nominal figures can be misleading and I'm sure revenue growth figures would have been lower if they were adjusted for inflation.
This article talkes about the revenues of the top soccer clubs, and Real Madrid of Spain tops the list for the eight year in a row crossing the 500 million Euro mark for the first time. The article mentions that the Spanish giants have showed a lot of revenue growth. Their revenue in 1996-97 season was 85 million Euros. I wonder if these numbers have been adjusted for inflation because I'm sure that Real Madrid hasn't actually grown that much since 1997. Nominal figures can be misleading and I'm sure revenue growth figures would have been lower if they were adjusted for inflation.
That is a good a point because the growth seems to be too rapid but after searching through clubs website I found the following information. The club grew 8.6% since last year and on average increased their income by 14% since 1999. The diversification of the sources of club's income helped Real Madrid grow at constant rate and protect it from uncertainties in the economy. Also I think that purchase of some big names (David Beckham, Zidane, Ronaldo, Cristiano Ronaldo, and others) and success on the soccer field over the past 10 years boosted their income dramatically.
ReplyDeleteI think Nazar raises a very good point when talking about the big names Real Madrid has signed. These big names always draw high expectations and a bigger following. It is very similar in the MLB with the NY Yankees signing big names in order to keep interest in the team and justify the high billing of ticket prices. With big names comes the expectation of success and a high level of entertainment, which all helps the Real Madrid increase their income and notoriety. Despite being eliminated from the champions league for 4 straight years, they were able to continue growing as a direct result of the star power that they had signed.
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