Real Madrid CF - FC Barcelona : Analysis of Business and Sports Strategy During the Period 2000-2006

During the period of 2000-2006, Real Madrid CF and FC Barcelona developed different strategies, leading to different outcomes. After three years of great sport achievements, Real Madrid CF, failed to succeed on the sport arena during the latter three years of the study. Nevertheless, it has managed to gain recognition as the richest football club in the world. FC Barcelona on the other hand, despite a somewhat disconcerting start on the sport arena and confronted with a delicate economic situation, proved capable of success by winning a UEFA Champions League title and two consecutive Campeonato Nacional de Liga titles. The analysis of the strategies used by the two football clubs during the indicated period, and the findings obtained in terms of economic and sport outcomes, permit a deepened understanding of the various ways in which a sport entity can obtain success and the adequate terms for measuring their performance. This paper aims to answer the following questions: What kinds of strategies have Real Madrid CF and FC Barcelona made use of in order to turn the success in one field into success in another, from sports success in one period into economic success in the following? What variables could explain the different outcomes obtained by each sport entity? Are there differences to be found between the clubs' sports and business strategies? Finally, the article presents a matrix for the analysis, which contributes to putting in relation the economic/business strategy with the sports strategy of sport entities