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Business Analysis: Real Madrid Vs. Barcelona

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Business Analysis: Real Madrid Vs. Barcelona
Since the past thirty or forty years, sports has undergone a massive change. From amateur to professional level, full time occupation as a sports person, and obviously the rapid commercialization of any particular game that is loved by millions or in some case, billions of people to milk money. Since the sixties, sports has undergone a tentative growth from a sporting activity to a billion dollar sports industry. Now a days, sports is also associated with the terms business and economics due to the enormous money that can be made from this field, the development of countries, and the varsity of jobs that are created. As is often the result, sometimes profits comes before a sporting success to some organization owning the teams in a particular …show more content…
While that is the scenario, both these clubs have taken different paths of reaching the pinnacle of football in terms of the strategies employed by both these clubs. Before broadcasting of matches, the main source of revenue for any sports team was gate receipts. Fans would buy season tickets and match-day tickets and the clubs would concentrate their strategies on maintaining the ticket sales through discounts and sometimes splurging on that one particular star player who had enough star power to pull the fans into the stadium. Both Real Madrid and Barcelona still follow that model to date apart from other …show more content…
This show how well Real Madrid placed their merchandising model. Real Madrid were one of the first few football clubs to take an advantage of licensing and merchandising in football and they did reap dividends of it.
Barcelona on the other hand followed a long term strategy of slowly building a team from their own youth academy and making them into superstars and thus reaping the benefits of it at a very low expense. The Barcelona squad that won the sextuple in 2008-09 had 6 players that graduated from La Masia, their own youth academy. And such a phenomenon in world football is unheard of, a team capturing everything with a foundation of their own youth. Thereby, accumulating more fans on the process. More fans results into more of club merchandise and thus extra
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