Real in red

The dream is over. Yesterday, Real lost for 6th year in a row in the last 16 against Olympique Lyonnais, a minor team in Europe. A disappointment for supporters has converted in a nightmare for banks which financed €260 spending this summer for acquiring rights for Cristiano Ronaldo (€94 mn.), Kaká (€65 mn.) amongst others. Regarding this, Real has mounted up a debt burden of c. €327 mn.

Expansión, a Spanish financial newspaper has assessed at €60 mn. The potential "loss" of being knocked out in the last 16. Despite last week Deloitte reported in the annual "Football Money League" that Real was reached for first time in history the €400 mn. in revenues Real, necessarily, should be pause its next summer acquisitions. Moreover, it is possible that lending banks (Santander and CajaMadrid) suggest Real to sell some players, such as Benzemá or Kaká. If this goes ahead, then, Real would be able to buy another supporter's preferred 'stars' as gunner Cesc Fabregas or French Franck Ribéry. Thus, could renew the support for Real's board through Madrid based sports newspapers Marca and As.

Florentino Perez said in the last summer player presentations that Real was spending the budget for acquisitions of three years in the first because Madrid supporters needed hope for a 2010 season where Champions League final was scheduled at Santiago Bernabeu. But sports are not business. As stated Woody Allen in 'Match Point' there are moments in a match when the ball hits the top of the net, and for a split second it can either go forward or fall back. With a little luck it goes forward and you win. Or maybe doesn't and you lose. Florentino lose yesterday and, like a successful businessman he has already prepared a "B" plan.

The next months will give us the clue of the future of the ownership structure of the Real. I bet for Real becoming private like Premier's football clubs or maybe a Plc, listed in the Spanish stock exchange with Perez as a President (and a majority interest). This is my bet since last summer.