Sunday, March 8, 2015

El Clásico: Sponsors

Real Madrid Sponsors and Partners 


FC Barcelona Sponsors and Partners



We have discussed how the rivalry between these two teams is more than just a game of soccer. However, we have not discussed that the rivalry between these two teams is now a way for big businesses to compete with each other. The rivalry among sponsors, and who they side with (which team, which players...etc) takes El Clásico to a whole new level. 

If you look at the list of sponsors for each team, it is obvious that companies align themselves with one team over the other, and this is a strategic move on their part. For example, Nike Sponsors FC Barcelona, while Adidas sponsors Real Madrid. These are considered two of the biggest brand names in athletic apparel and sporting goods, and they in a sense have a rivalry among themselves that is now carried out on the soccer field when Real Madrid and FC Barcelona play each other. The same can be said for Samsung and Pansonic, Microsoft and Intel, and Emirates and Qatar Airways. All of these competing firms have chosen to sponsor either one team or the other (with the exception of Audi). It is definitely a strategic move by management at these large firms to align themselves with either one team or the other, and this is because the rivalry is so huge (it is more than just a game of soccer). If you were a die hard fan of Barcelona would you buy Adidas over Nike ? I think that this is the mentality that competitors are trying to take advantage of from fans. They are hoping that aligning themselves with one team over the other gives them some sort of competitive advantage in terms of profit. 

With Nike and Adidas in particular, it is especially important to take these two firms into consideration when it comes to El Clásico. This is because although each of them is a primary sponsor for one team, they actually support individual players from other teams. For example, Adidas sponsors Real Madrid and also Mesi... perhaps the most notable FC Barcelona player. 



Similarly, Nike sponsors the individual player Ronaldo. What advantages do you think this gives these two teams? Why would Nike not sponsor Messi, and Adidas not sponsor Ronaldo? It would make sense because their allegiances are to the entire teams of Barca and Madrid. I personally think that they are choosing to sponsor opposite individual players because it broadens their target market. It would perhaps be TOO strong of a tie to FC Barcelona if Nike sponsored Messi, and vice versa. Then Real Madrid fans might actually not buy Nike, and only stick to adidas. 





Wednesday, March 4, 2015

Revenue Generated from El Clásico


The rivalry between Real Madrid and FC Barcelona is literally a billion-dollar grudge. According to CNN.com the combined revenue of Real Madrid and FC Barcelona is over $1 billion. Big 4 Accounting Firm Deloitte reported these figures. With both teams made up of some of the biggest futbol superstars, they top the list of highest paid wages to players. Madrid pays an average salary of $7.9 million to players, while Barcelona pays an average of $7.4 Million. Each year these numbers keep on growing.

There are a few reasons why this rivalry is considered the richest game in the world:

1. The two clubs own 5 of the most expensive players in the world.
Gareth Bale (Madrid)- 101 million euros
Cristiano Ronaldo (Madrid) - 94 million euros
James Rodriguez (Madrid) - 80 million euros
Luis Suarez (Barcelona) – 81 million euros
Neymar Jr. (Barcelona) – over 90 million euros   (ESPNFC.COM)


2. It is near impossible to buy either team’s players
When the two teams play, you are witnessing ten of the most valuable players in Spain! Ronaldo alone has a buyout clause that would cost a team over 1 billion euros. Barcelona youth prospects who have never been transferred (Messi, for example) have buyout clauses of 250 million euros. These are massive amounts of money just to acquire a person / player!  The total value of Madrid’s team is 673 million  euros, while Barcelona is worth 611 million euros. SO MANY MILLIONS! 








El Clásico: A Tale of Two Cities


There is no doubt that the rivalry between Real Madrid and FC Barcelona is more than just a game of futbol. These are two of the richest clubs in the world with some of the most passionate fans in the world, and when they finally meet on the field, the emotions stirring amidst the crowd run deeper than just “which team is better?” This rivalry and it’s implications on the teams, fans, and businesses surrounding it can only be understood with a better understanding of Spanish history. Is The rivalry between these two teams a rivalry between two cities…. between two regions….between two cultures… between two languages…between two political and economic ideals? I think so.

It seems that there may be irreconcilable differences between the Catalonians and the madrileños (Duke University), and this is why I think that El Clásico is more than just a game of futbol. Recently, Catalonia has attempted to separate from the rest of Spain, and  Barcelona (the capital of Catalonia) is somewhat synonymous with Catalonian nationalism and the idea of Catalonian independence. The tensions between Catalonia and the Spanish state (located in Madrid) are expressed not only in political and economic terms, but also on the field.

Since both of these teams are “owned” by their members they are essentially owned by the cities of Madrid and Barcelona. When these two teams battle it out on the futbol field, are they fighting for more than just a win in the scorebooks? Are they fighting for their political views? Are they fighting for Catalonian nationalism or vice versa? Since futbol is such a huge deal in both of these cities, it makes me question whether or not futbol plays a role in increasing the Catalonian nationalism in Barcelona, and only intensifying the political issues between the two cities.