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Madrid's Money Mafia: How Florentino Perez bankrolls football's economy

Multiple infringements in the regulations of football's (or soccer's) governing financial rulebook, Financial Fair Play (FFP), have been recorded over the past few years. FC Barcelona, Manchester City, Liverpool, and the like have all been dealt the short end of the straw and slapped with fines or ironclad clauses that prevent them from attempting to "buy" football. Well, not to much of a great effect with Man City. However, one club seems to evade all of this, despite one of their club rules involving signing a big-ticket player every season.



Who? The answer is none other than Real Madrid. A club storied with tradition, brandishing their 15th European championship - a record number - has tiptoed along the fiscal fences for far too long. Smart business, or a grand case of bribery? Regardless of the era, Real has been synonymous with cash; be it during their president Florentino Perez's infamous election campaign, where he persuaded Luis Figo to don the iconic white, or during 2009, where the Los Blancos spent hundreds of millions on Cristiano Ronaldo, Ricardo Kaka, Xabi Alonso, and Karim Benzema in one fell swoop. Of course, one can't forget Mbappe's signature on their dotted line; a free transfer that involved a player compensation of almost 100 million pounds.


The common fan credits this to the brilliant business acumen of Florentino Perez, known for his prolific leadership, and of course, the alluring influence that's imbued within the Real Madrid brand. But, those with a keen eye can see that the numbers simply don't add up. The first to comment on this was the Telegraph, back in 2023, sparking an investigation by the Union of European Football Associations (UEFA), revealing that Madrid hides up to 122 million pounds of revenue in order to escape FFP.



Quite the scandal, wasn't it?


You'd be surprised. This news, while being reported by other reputed sources such as The Times, and Le Monde, was forgotten almost as quickly as it came into light. An overstep by UEFA? A miscalculation by the FFP? Perhaps a leveraged favour by 'Papa' Perez? Time will tell, but the average Real Madrid fan certainly isn't complaining now.

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levon ettibaryan
levon ettibaryan
2 days ago

Very interesting article, I always wondered how Real Madrid seems to have an endless spending habit, yet has never been charged with any FFP charges.

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