Serious Warning from Major Investors of Barça and Madrid on Football’s Future

The evolution of new technologies and globalization poses a serious threat to the dominance of European football unless major clubs adopt a new management plan to connect with emerging generations. This caution comes from Alan Waxman, former Goldman Sachs partner and co-founder of Sixth Street, the investment fund that acquired 25 percent of Barcelona’s television rights for 25 years and 30 percent of the event exploitation rights in the new Santiago Bernabéu.

Alan Waxman, in an interview with the ‘Financial Times,’ warns, “There are increasingly more forms of entertainment that people, especially the youth, can consume. If you don’t generate more interest, you can start losing followers, and once that begins, it’s challenging to regain them. That’s why the best companies innovate before that happens.”

According to Waxman, the key is to invest in new experiences: “Without doing so, there is a risk of losing prestige and prominence.” He emphasizes that the management plan should focus on diversifying income by leveraging the vast global fan base that major clubs attract. This should be accompanied by improvements in stadiums and infrastructure to provide a better overall experience and a broader offering to fans.

The recent inauguration of the new Santiago Bernabéu by Real Madrid and the ongoing renovation of Camp Nou by Barcelona, coupled with the ambitious Espai Barça project for urbanization, showcase the commitment to enhancing fan experience and revenue diversification.

Both Real Madrid and Barcelona are leading this adaptation to new management strategies, exemplified by their involvement in the Super League project. Although Waxman refrained from delving into the analysis of the project, he left a statement that could be seen as a nod to this new formula challenging FIFA and UEFA’s monopoly: “European football needs a structural change that provides more significant matches to excite fans.”