Florentino Perez looking to sell 5-10% of Real Madrid equity to outside investors | OneFootball

In a major development, it appears Real Madrid president Florentino Perez is ready to sell equity of the club in order to bring in fresh revenue.

This is according to Cadena SER, which suggests Perez is planning to sell between 5% and 10% of the club’s equity to outside investors. He will present this plan at an extraordinary socio meeting later this month.

The president reportedly values the club at a staggering €10 billion, meaning the sale would bring in between €500 million and €1 billion.

How will it work?

This follows an earlier report which had claimed that the Real Madrid team is looking for a demerger and split its commercial and sporting businesses.

Under this potential model, investors could purchase stakes in the commercial side, which includes areas such as sponsorship, events, and stadium revenues while the sporting entity will be 100% owned by socios.

Will Perez’s idea to sell Real Madrid shares get approved? (Photo by Dan Mullan/Getty Images)

It is this second commercial entity that Perez likely intends to sell a stake in. This structure allows him to raise massive capital – likely to finance the ballooning player wages and fund future Galactico signings.

Advisors from Key Capital Partners and law firm Clifford Chance are reportedly helping structure the proposal, which would need to comply with complex tax and legal regulations.

Perhaps more importantly, this may pave the way for other clubs such as even Barcelona to adopt the strategy and demerge their commercial business.

This demerger model is, in essence, a more structured and sustainable version of the levers used by FC Barcelona.

Earlier reports have also indicated discussions on adopting a version of the Bundesliga’s 50+1 model, which would ensure members always retain majority control, while investors hold minority stakes.