The history and heritage of Real Madrid gives the club an advantage which helps them to keep their players happy. The club has recently signed a number of their stars to a tempting long-term contract. They have done this without going into any financial danger. Real Madrid can go for lucrative contracts without breaking any bank as the lure of the Bernabeu is enough.
Star players such as Christiano Ronaldo, Gareth Bale, Toni Kroos, Lucas Vazquez and Luka Modric have signed new deals at the Bernabeu inspite of having better offers from other places.
Ronaldo was offered a pay rise by the Paris Saint-Germain and Manchester United would have fulfilled Bale’s salary demands. Kroos and Modric had a chance to jump from their middle ranks on the Madrid pay-scale if they would have joined cash-rich Premier League outfits. But none of them were willing to leave Spain.
Steven Mandis believes that the reason behind their decision is that the passion and the values of the community lie at the centre of the club. Adjoining the community values and opportunities is a sustainable economic-sport model. Mandis said that the shared ethos, values and expectations of the Real Madrid community state the operations, mission and behaviour of every aspect of the club.
The community feeling and glory of the club in the 1950s with Santiago Bernabeu and Alfredo Di Stefano are the reasons that give an added advantage to the present team against their competitors in terms of global fan numbers and revenue.
The one element that can provide a competitive advantage is a distinctive culture and values that attract a passionate and loyal community. No one can figure out the beginning and ending of a dan’s identity and life as a Madridista and also the club’s identity and purpose.
Fans of other clubs may roll their eyes listening to the length talks about heritage and values as he did recently in the event of Chistiano’s contract signing. But according to Mandis it is not just the fans but also the players who buy into this feeling of Madrid as special and extraordinary.
Ronnaldo also spoke of the valued history of Madrid during signing the new contract and he confessed that he had fought hard to stay as playing at the Bernabeu is the summit for any player.
A wages-to-turnover ratio of 70 percent is recommended by the UEFA’s European Club Association and Madrid had a ratio of 90 percent during Perez’s first team. The ratio has dropped over time and presently it has gone below 50 percent which is one of the lowest in Europe.
Madrid came in the 19th in the recently published Global Sports Salaries Survey despite being the richest club in the world. They are way behind Manchester United, Barcelona and Manchester City.
The Real Madrid way has worked pretty well for them as they have brought record financial results in the last three seasons along with two Champions League Trophies. There has been no such team which has delivered such historic success breaking up.