Florentino Perez dealt setback to Real Madrid ownership plans

‘Real Madrid must change and adapt in order to defend its interests’ – that was the message from President Florentino Perez at the Real Madrid general assembly back in November. It was the first public acknowledgement of a series of stories that the man at the top was looking into a potential change to the ownership model at the Santiago Bernabeu.

The most decorated club in European Cup history has been owned by the members since its inception 122 years ago, and despite falling on fallow times during the civil war, was turned into a behemoth by Bernabeu. Thus far, presidents remain elected by members though, even if Perez has run largely unopposed for much of the 21st century.

What exactly is Florentino Perez proposing?

Official details are hazy, but Perez had the following to say at the general assembly earlier this season.

“We will bring to this assembly a proposal for the club’s corporate reorganisation that will clearly secure our future, protect us from the threats we are facing and, above all, ensure that we members are the real owners of our club, the real owners of our financial assets in our own right.”

Previous reports had indicated that he was planning on converting Real Madrid members into shareholders, in a model which would ensure that 51% of the shareholders would remain Real Madrid members. The idea was that members could not sell their shares, and would only be passed onto family, while being able to attract foreign investment.

Perez advised against changing Real Madrid ownership

However a report from El Confidencial, as referenced by Sport, reveals that Clifford Chance, have advised against the idea. The US consultancy firm has has been working with Perez on the idea, and sent him a report on the matter, highlighting potential issues.

Their opinion is that allocating the shares to the Real Madrid Foundation would go against current legislation, and the alternative would be to convert the club into a private company like other clubs. That would in turn potentially wrest control of the club from the members. Any change to the ownership model must be approved by a majority vote from the members.