Real Madrid Club de Football Consulting Practice Project Analysis

This project provides a comprehensive analysis of the Real Madrid Club de Football, examining various aspects of its business operations. It begins by identifying the club's key challenges, including financial constraints, player salaries, and the need for strategic leadership. The project then delves into the application of financial analysis tools, such as financial statements and ratio analysis, to evaluate the club's performance. It explores different leadership styles, including strategic and autocratic approaches, and their relevance to managing the team and making effective decisions. The project further investigates change management models, such as the DICE model and Kotter's 8-step model, to address organizational and operational changes. Additionally, it examines aggregate project planning (APP) to improve the club's overall capability and productivity. The analysis covers the club's strategies, resource allocation, and project planning processes, providing a holistic view of the club's management and development.

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Real Madrid Club de Football
Consulting Practice
3/13/2020
Name:
Course Number and Name:
Instructor Name:
Due Date:
Contents

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Understanding of Problem(s) and Requirement(s)..........................................................................2
Financial analysis tools....................................................................................................................2
Leadership styles.............................................................................................................................2
Change Management :.....................................................................................................................2
Aggregate project planning (APP)...................................................................................................3
References........................................................................................................................................4

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Understanding of Problem(s) and Requirement(s)
Real Madrid is one of the biggest football clubs in the world so the pressure is there with
the players to win all the matches. In the second century, Real Madrid has faced the issue
regarding the funding which is stopped as the clubs which they sponsored once have collapsed.
Due to the lack of funding the issues has to face on the salaries of the players and in regards to
the transfer prices. As a good team, Real Madrid requires the prestige of individual players. This
club also requires the portion of earnings from the player’s sponsorship (Alcahuz Serrano, 2017).
There were several other problems which the Real Madrid club is facing which are they
have spectacularly failed to replace Ronaldo as it is one of the greatest players. The requirement
which they needed is the aging squad needs an overhaul so that experienced players can rebuild
the working. Another requirement is that this club has to majorly focus on the opponent playing
style and the team has tie b set up accordingly. The club has the best player so everyone knows
their strategy to play and his special ability also to target the man becomes quite easy for the
other teams (Iqbal, et al., 2015). They are also facing the issues that they are playing from wings
to center and every other team and clubs know that so to defend and so the counter-attack
becomes easy for the other clubs.
The club Real Madrid was facing the issues of achieving the sustainable growth by
extending the world recognition world widely. The club has the due diligence so it was critical
expend the sustainable growth. It was very difficult for the club to manage the operations and the
other things as there spending on the expenditure are very high. The mission of the club was not
clear which was another issues in the club and due to the increasing competition to choose the
best players was also difficult as they are demanding the higher salaries. The operation strategy
of the club is not effective which result in the affecting the marketing approaches and it results in
affecting the reputation of the club.

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Financial analysis tools
The basic financial tools which can be used in this case study to evaluate the performance
of the Madrid club are financial statements, ratio analysis, working capital, capital structure,
dividend policy, etc. From these financial tools, it is analyzed that the club caries no debt but
they have a negative debit balance in the financial statements (Brágimo Villalba, 2019). It was
reported that Real Madrid has the highest earning’s in the football league.
Source: https://www.transfermarkt.com/money-league-man-united-rsquo-s-top-spot-in-
england-at-risk-record-gap-between-barca-and-real/view/news/352025
Ratio analysis is used by Real Madrid’s club so that they can evaluate the performance of
the club that whether they are performing well or not. With the help of this financial tool, the
Real Madrid club helps in validating the investment, financing and operating decision of the
club. Some ratios are not that effective but still, the club can ascertain the financial efficiency,
solvency and the long term position of the club (Haas, et al., 2020).

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Source: katan.vtngcf.org
The financial statement of the company helps in evaluating the debt and the equity which
the club has. With the help of these financial statements of the club the investors evaluated that
whether should invest in this club or not. The trends which are going in this club are also
evaluated through these financial analyzing tools. The club has reported an average profit after
the tax of Euro 33 million in the last five years so the investors of this club get the maximum
dividends and they are getting good returns. The Real Madrid club has no debts although they
have some negative balance in their financial statement which indicates that the club is
performing well and they have enough assets in their club. The club is the high earning clubs and
has the richest soccer club in the world.
Source: Footballbenchmark.com

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Leadership styles
There are several types of leadership style which can be used such as Authorities,
paternalism, participative, etc. The leadership style in the person is needed to avoid dealing with
the issues which are stated above. In the leadership style, the consistency should be there as it
helps in analyzing the internal capabilities of the players.
Strategic leadership styles are the style that was used by the Real Madrid club as it is
commonly effective in the growing opportunities and in operating the things. Strategic thinking
is the main criterion of the leader and it focuses on supporting the people and making effective
decisions (Ikeda, et al., 2017). This leadership style is also very effective in making things good
as it helps the leader in taking several decisions regarding the strategic criteria. If the situations
are getting a little but worst or which are not being handled easily then these leadership styles
help in ensuring that the current working conditions remain stable.
Autocratic leadership style can also be used by the Real Madrid Club which helps in
taking decisions based on the judgments and the ideas from the followers. The club has a team or
group so this style is effective for them in involving authoritarian control and involving in taking
effective decisions (Levinson, et al., 2016). This style of leadership benefits in making the
decision quickly and also provides clear oversight and a clear chain of command. Real Madrid is
a large group of people where the autocratic leadership style can be more effective in managing
the team sand taking the decisions quickly.
If any issues arise within the group members of the club then the participative leadership
style is very effective as it helps in given the pertinent information regarding the issues of the
club and majority of the club members decide what course of action should be taken so that
effective decisions can be done (Nordhaus, 2018). Participative leadership style also helps in
improving the morale of the group members and accepting the decisions more likely. They also
help in encouraging creative solutions by taking the opinions together on the issues of the club.
This leadership style also helps Real Madrid in increasing its collaboration and increasing the
retention of the club members so that the productivity and the efficiency level of the club get
enhanced.

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Change Management
DICE model: This model is based on the computer-based integrated assessment which
includes the natural capital reduces the emissions of the raising natural capital. DICE model
allows climate change. Change management is not an easy task but it requires effective tools for
achieving the desired goals. In the framework of the DICE model, it includes the factor for
influencing change are duration, integrity, commitment, and effort. In Real Madrid, the
framework is required for changing the rules of the game and making the strategies work. To
deliver the best performance the change is required at the right time. DICE model helps in
comparing the performance and tracing the progress of the change. It is beneficial for real
Madrid which helps in achieving both organizational and operational changes which help in
achieving the improved behavior of players towards the game. Efforts are required to be
implemented for the change.
Kotter’s 8-step model: There are 8 steps of the change model which was given by the
Kotter’s which helps in establishing the sense of urgency in the football club, create the guiding
coalition so that the group of the people can put together. A vision and strategy are developed in
the third step by the football players where the change is required in the Madrid club. The change
vision has to be communicated by using different communication channels. In Real Madrid, the
change in several teams requires effective communication. Change in several groups and players

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required to communicate effectively for improving the performance. The obstacles are required
to be removed in the change management as in Real Madrid the removal of obstacles helps in
empowering people for executing the vision and helps the change to move toward the desired
goals. In the next step, the club is required to create short term wins which help the player to
motivate for more success.
Along with long term goals, the creation of short term goals helps in making the team
work hard for the targets and makes the team win the game. The next step includes building the
change in an effective manner which requires making the win by doing the right change and
improving the skills. The change can be empowered by the employees by using the new
approaches (Alarcón, 2018). In the culture of Real Madrid, anchor the change by putting
continuous efforts as a change in team category is required in every season. The ideal values and
change ideals are required to be managed which ensures to achieve success.
Color test for change agents: When the changes occur in the club this model helps in
evaluating the convictions about the change through the interactive test. This model helps Real
Madrid in evaluating what changes are good and what are further developed or molded. It
includes the interactive test which helps in analyzing the conviction for making the change in
Real Madrid. The test includes analyzing which type of change is required and change is done. It
helps in giving the first insight into the different paradigms and approaching towards the change.
Different color helps the team in labeling the change and its performance in Real Madrid. To

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lead the change in Real Madrid, the change agent helps in implementing and managing the
approaches and strategies for improving the performance.
The four-types of cooperation tools: The four cooperation tools are power,
management, culture and leadership (Galli, 2018). This entire tool is essential for making and
change in the Real Madrid club as it helps in building a positive relationship with the others. To
manage the change in Real Madrid, the main task is to get the people to work in a team
systematically. It requires choosing the right tool which includes the two matrices as change is
required to be made for effective performance. The tools are essential for the Real Madrid club
as every tool is unique and requires strategic planning and controlling the change system. To
generate income and revenue, the change team is required to implement the tools to manage and
effectively implement the changes for the players. The change in strategies as well in planning is
required for effective change management.
Aggregate project planning (APP)
It is the process that is used by Real Madrid in creating the objectives and the goals and
to improve the overall capability and productivity of the club. In this process, the club has to go
through with some plans such as
Creating the well-defined strategy: It is an important step as the real Madrid club has
the strategy to give a long basis but they do this only when they changing flanks.
Improve the efficiency of the current project: The club Real Madrid has used several
products and services that are used in soccer so this helps the club in making the strategy happen
effectively (Amanchukwu, et al., 2015).
Eliminate the projects which do not get fit: There are some things which do not go
with the project of the real Madrid so they have to eliminate them so that time and resources for
the project can also be needed and unnecessary things can be removed.
Evaluating the existing resources and allocating them to the project: It is also an
important project planning process where the resources and the equipment which are needed by
the club are evaluated at the best level and helps in improving the development capabilities.

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Conclusion and Recommendation
From the above report it is concluded that Real Madrid has faced certain issues in the
historical times which relates to the funding. In this report the several other issues has also stated.
Financial statements, ratio analysis, working capital, capital structure, dividend policy, etc. are
the financial tools which were used by the Madrid Club for ascertaining their financial position
in the market. In this report with the help of the charts and graphs the explanation of the
performance of the company has also given. The four change management model are explained
in regards with the Madrid club which are the four-types of cooperation tools, Color test for
change agents, Kotter’s 8-step model and the DICE model through which the changes in the club
has established in the effective manner. It is recommended that the company should use the tool
of the proper planning so that they can manage their funding in the effective manner and solve
the issues related to the funding and the salaries of the football employers. It is also
recommended that Dice model is the most appropriate for the club to manage the change in the
appropriate manner. Certain recommendations are stated below:
The club should reduce their s pending so that they could earn more profits and give can
operate the functions of the club in the effective way.
The fixed salaries of the players should be reduced so that so that higher spending in
salaries can also be reduced.
The contact of the sponsorship has to be focused or it should be renewal for attaining the
more profits.
It is recommended that income of the club can be increased by increasing the price of the
season tickets.
It is recommended that the club can increase their performance by maintain the players
success and leveraging the global brand by maintain the aggressive attitude.

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References
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asociaciones y el derecho de asociación de los socios pertenecientes a la misma. Comentario a la
sentencia del Tribunal Supremo que resuelve el recurso de casación interpuesto frente al Real
Madrid Club de Fútbol. STS de 13 de marzo de 2018 (JUR 2018, 72790). Revista Aranzadi de
derecho de deporte y entretenimiento, (59), 9. Retrieved at:
https://dialnet.unirioja.es/servlet/articulo?codigo=6557245
Alcahuz Serrano, A. (2017). Valoración del Real Madrid Club de Fútbol. Retrieved at:
https://repositorio.comillas.edu/xmlui/handle/11531/24590
Allan, J. (2015). Bloody casuals: Diary of a football hooligan. Jay Allan.
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