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Real Madrid’s Strategy: Balancing the Present and Long-Term Investments

Perez Real Madrid

By Andrea Caropreso

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The Real Madrid winning mentality, which has led to the conquest of every possible trophy, is not just the result of the mystique surrounding the Santiago Bernabéu. It is, rather, the product of a clear vision orchestrated by president Florentino Pérez. After the Galácticos era — first led by Casillas, then Ramos, with stars like Modrić, Kroos, Casemiro, Marcelo, and Ronaldo — Real managed to stay at the top of both Spanish and international football. How? By securing the future, without ever losing sight of the present.

Signing Today Who Will Dominate Tomorrow

Looking at the period from 2017 to 2025, it’s clear how Pérez’s vision ensured Real Madrid signed the most promising global talent year after year. Players are brought in young, developed behind experienced veterans, and then given the reins once ready.

Player Year Signed (Arrived) Age at Signing Cost (€M) Current Market Value* Role/Impact
Vinícius Júnior 2017 (2018) 16 45 150+ Starter, UCL MVP, world top 5
Rodrygo 2018 (2019) 17 40 100 Starter, decisive in UCL
Reinier 2019 17 30 5–10 Unsuccessful loans so far
Eduardo Camavinga 2021 18 31 70 Versatile, key squad member
Aurélien Tchouaméni 2022 22 80 70 Co-starter
Jude Bellingham 2023 19 103 + bonus 180+ La Liga top scorer, absolute leader
Endrick 2022 (2024) 16 35 + bonus 60 (est.) 7 goals, 1 assist in 37 games (mostly subs)

*Estimates based on Transfermarkt data.

Aside from the underwhelming Reinier deal, Real Madrid has shown extraordinary foresight in scouting the right talents to build a new generation of stars. Around them, world-class signings like Mbappé, Alaba, and Courtois complete the picture. The 2025 addition is already official: Argentine wonderkid Franco Mastantuono from River Plate for €63M — at just 17 years old.

The Financial Logic Behind the Strategy

This youth-centric philosophy isn’t just about building a winning team — it’s also about financial strategy. Signing top talent early means lower wages until their full breakout.

Endrick of Real Madrid

Endrick, for example, signed a contract worth €4 million per year. While this may seem excessive from an Italian club’s perspective, for Real Madrid’s revenue scale it is easily manageable. Moreover, these young stars boost the club’s brand value, bringing commercial benefits and global visibility.

Year Brand Value (€B)* Rank Among Clubs Key Drivers
2018 1.60 1st Global peak (Ronaldo’s final year)
2020 1.42 1st COVID resilience, economic strength
2022 1.52 1st UCL win, post-COVID growth, stadium
2023 1.51 2nd (Man City) Strong revenue, City overtakes briefly
2024 1.62 1st Bellingham boost, digital & stadium growth
2025 1.75–1.80 (est.) 1st Mbappé + Endrick effect

*Based on Brand Finance & Deloitte estimates

Even during the pandemic, while most clubs posted heavy losses, Real Madrid remained profitable — closing the 2021/22 season with a €13M surplus.

Sustainable Success

In a global football landscape marked by financial uncertainty, where many top clubs — Barcelona being a prime example — rely on ongoing capital injections to patch up deficits, Real Madrid stands out as one of Europe’s few sustainable management models.

Real Madrid

The revamped Santiago Bernabéu plays a major role in this success. The €1.17 billion investment, financed strategically over decades, is already paying off. In the second half of 2024 alone, it generated nearly €44 million in non-football events, while match-day revenues rose over 58% compared to the prior season.

All in all, the stadium and its related activities (retail, tours, hospitality) now yield over €300 million annually, helping the club surpass the €1 billion revenue mark for the first time in history. In other words, while most of Europe’s elite clubs are still figuring out how to survive, Real Madrid already knows how to thrive.

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