Real Madrid might promote as much as 10% of the membership’s shares | EUROtoday

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Real Madrid opens as much as the likelihood that an exterior investor might purchase a minority stake within the soccer membership. A transfer that may additionally assist the Spanish soccer big to higher decide the worth attributed to the membership by the market. This was declared yesterday, Sunday by the president of the BlancosFlorentino Pérez.

The plan

The soccer membership – probably the most profitable in Europe – will create a brand new unit to host “a minority stake with a share equal to 5% or a maximum of 10% of the club’s shares, to know its real value – declared Pérez during the annual general meeting -. This is the clearest and most convincing way to do it,” adding that the alternative would be to go public, which the club does not wish to do.

The sale of a share would take place at the same time as the project to convert members into shareholders, as proposed by Pérez a year ago. Unlike most major European clubs, Real Madrid – and arch-rival FC Barcelona – operate as non-profit organizations owned by thousands of paying fans. This structure prevents private investors from acquiring equity shares, as shareholders do not own marketable shares. The club will hold a special meeting to vote on the changes.

Turning fans into shareholders would allow them to become “the true owners of the club,” Pérez said in 2024, adding that such a move could distribute assets worth more than 10 billion euros ($11.5 billion) among them.

The precedents

The potential entry of exterior buyers would come amid a increase in sports activities finance, with asset managers more and more within the soccer sector. Earlier this month, Atlético de Madrid, Real Madrid’s arch-city rival, bought a majority stake to Apollo Global Management Inc., in a deal that valued the membership at 2.2 billion euros.
Other non-public fairness corporations have additionally invested in soccer leagues and golf equipment. In Spain, CVC Capital Partners Plc struck a deal in 2021 to inject funds into Spain’s high flight, LaLiga, in change for a share of broadcast rights. Real Madrid and Barcelona opposed the deal.