Hello World Essay

1547 words - 6 pages

Real Madrid Club de FutbolCase Studyby Kurt EschbacherAbstractThe case study is about one of the best known and best playing soccer team in the world, Real Madrid.It tries to backlight the myth of soccer and the tremendous merchandising system behind soccer. Especially the era of Florentino Pérez, who brought a new dimension in managing and merchandising soccer clubs to Spain, will be analyzed in detail.soccer The gameWhat makes a team like Real Madrid so interesting for sponsors and fans worldwide? What makes soccer so interesting for us?Soccer is the world's most popular sport. Nearly every child kicked a soccer ball once in his live. More than 240 million people play at least once a week.Such a big sport needs a big parent organization in its background. This job is done by the Fédération Internationale de Football Association (FIFA). The FIFA which was founded 1904 in Paris established a unified set of rules. This rules are easy to understand and are of course one of the reasons why soccer is so popular all over the world. Also the time a soccer game lasts is defined by the FIFA, its two halves of 45 minutes split by a 15 minute brake. In elimination games an overtime of two times 15 minutes and also a penalty shoot-out at the end of overtime is possible. This is a big advantage for sponsors and TV broadcasts compared to other sports like American football or boxing where the time for a game or fight is nearly unpredictable. You can have 12 rounds of barn-storming fight or a knockout after 10 seconds. At soccer games they can calculate and time their spots and broadcasting exactly. There is also the FIFA World championship which is the second largest worldwide sport event beside the Olympic Games. In 2002 the FIFA World championship had a cumulative audience of 28 billion viewers over 25 match days. This huge audience is another reason why soccer is so interesting for sponsors.The European soccer is organized by the UEFA and its 52 national associations. The UEFA Champions League is the mayor seasonal competition for the best European clubs and the stage for teams like Real Madrid and Manchester United.Soccer The businessIn the past gate receipts were the most important income for a soccer club, also for professionals.But in the 1990s a change of business model went through the professional soccer teams in Europe.In Europe the hosting club of a soccer game receives all the gate receipts. Another source of income is local sponsorship. But the new merchandize model targets a worldwide audience. Manchester United for example was able to allocate 45 million supporters worldwide. Compared to the 6 million supporters in their own country this was a totally new market with huge chances. To supply all different target groups of fans they set up sub brands like "Fred the Red" for children selling T-shirt, balls etc, "MUFC" for teenagers selling products with attributes of rebelliousness friendship. "Red Devil" targets adults and...

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