Steven G. Mandis - The Real Madrid Way: How Values Created the Most Successful Sports Team on the Planet

Praise for The Real Madrid Way

This book will be one of the most influential books on sports ever written. It doesnt matter if you are a soccer or Real Madrid fan, you will look at sports and business in a different way after reading this book.

BILLY BEANE, executive vice president of baseball operations and minority owner of the Oakland Athletics

The fact that Steven Mandis was given complete access into the inner sanctum of the richest football [soccer] club in the world testifies to the trust Real Madrid placed on Stevens head, which is quite amazing. This is the definitive, comprehensive survey on the essential workings of this famous club. It is an eye-opening account, clinical and done with a sensitive touch.

SIR ALEX FERGUSON, manager of Manchester United 19862013

With unprecedented behind-the-scenes access, this book is the most complete study of any sports team ever done, analyzing both on the field and off the field performancewhich leads to fascinating conclusions.

DAVID STERN, NBA commissioner emeritus

The book magisterially penetrates through all the mystique of Real Madrid, football [soccer] and sports. This is the ultimate look behind the regal velvet ropes and steel curtains both in the boardroom and locker room at the most successful and valuable team in sports, Real Madrid.

RAY HUDSON, soccer commentator for beIN Sport, retired English professional soccer player, and former MLS coach

This book expands on and challenges aspects of Soccernomics and The Numbers Game because of Mandiss access and organizational considerations and reexamines and questions facets and applications of Moneyball.

FRANCISCO PREZ CUTIO, whose graduate research at Cambridge University is referenced in Soccernomics

This is much more than a book about a soccer team. If you love the NFL, MLB, or NBA, this book is a must-read because it will change the way you view your favorite team.

GEOFF POPE, cornerback for 2008 New York Giants, XLII Super Bowl Champions

No Real Madrid book, or sports book for that matter, has ever been written like it. Mandiss unique background in business and academics and outsiders perspective produce an essential book for any Madridistas library collection.

GABE LEZRA, founder and editor-in-chief emeritus of ManagingMadrid.com

The Real Madrid Way delivers ground-breaking insights about the success formula for a legendary sports franchise. An in-depth exploration of organization culture provides a great balance to the role of sports analytics and makes this a must-read leadership book for anyone interested in sports management.

VINCE GENNARO, director of the Masters of Science in Sports Management program at Columbia University, author of Diamond Dollars: The Economics of Winning in Baseball, and president of the Society for American Baseball Research (SABR)

Mandis explains the incredible power of community brandswhere a global community feels so deeply passionate about the brand that the brand is synonymous with ones identity, values, and much more.

ANDREW MESSICK, CEO of IRONMAN

The Real Madrid Way explains how Real Madrid has created and maintained a culture that drives both financial and on-the-field success. An educational and inspiring example for sports fans and executives alike.

Lindsay McGregor and Neel Doshi, cofounders of Vega Factor and New York Times bestselling coauthors of Primed to Perform: How to Build the Highest Performing Cultures Through the Science of Total Motivation

Mandis has created a gripping narrative exploring how Real Madrid has done the seemingly impossible: used a strong culture and shared values to overcome the problem of the too-much-talent effect. The book is a must for anyone interested in culture, leadership, and high performance.

ADAM GALINSKY, chair and Vikram S. Pandit Professor of Business at Columbia Business School and coauthor of Friend & Foe

Copyright 2016 by Steven G. Mandis

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews.

Photos used courtesy of Real Madrid Club de Ftbol.

BenBella Books, Inc.

10440 N. Central Expressway, Suite 800

Dallas, TX 75231

www.benbellabooks.com

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First E-Book Edition: October 2016

Library of Congress Cataloging-in-Publication Data is available upon request.

e-ISBN: 978-1-942952-55-8

Copyediting by Scott Calamar

Proofreading by Brittney Martinez and Sarah Vostok

Indexing by Amy Murphy Indexing & Editorial

Text design and composition by John Reinhardt Book Design

Front cover by Bradford Foltz

Full cover by Sarah Dombrowsky

Author photo by Alexandra Mandis

Logo courtesy of Real Madrid

Printed by Lake Book Manufacturing

Distributed by Perseus Distribution

www.perseusdistribution.com

To place orders through Perseus Distribution:

Tel: (800) 343-4499

Fax: (800) 351-5073

E-mail:

This book is dedicated to the people of Spain.

My family and I admire your beautiful

and fascinating culture, history, and language.

Most of all, we appreciate your warmth and kindness.

Real Madrids secret to success on the field and off the field, more than money, talent, and data analytics, is the values and passion in its fans hearts and souls. It starts and ends there.

A Real Madrid Executive

CONTENTS

PART ONE
How Real Madrid Became the Most Successful Sports Team on the Planet

PART TWO
Galcticos 1.0 (195560)

PART THREE
Galcticos 2.0 (200006)

PART FOUR
Galcticos 3.0 (200914)

PART FIVE
Start of Galcticos 4.0 (2015)

Essential Message of the Book

The sports industry is a $620 billion global business, as competitive and dynamic as any industry on the planet. To rise to the very pinnacle of this arena, as Real Madrid has done, is an extraordinary accomplishment. Generally unnoticed, in the space of fifteen years Real Madrid has gone from near bankruptcy to becoming the most valuable sports team on the planet. Their secret to success, revealed here, is a fascinating story, with implications for industries and organizations worldwide.

How the Book Came to Be

On a weekday morning in 2014, I passed through security at what is considered one of soccers cathedrals: Santiago Bernabu Stadium in Madrid, Spain. It is the home of the celebrated Real Madrid soccer team, but I was not going to a game. Rather, I was headed to a meeting in the executive offices located inside the stadium.

When I arrived, Carlos Martnez de Albornoz, Real Madrids director and a key member of the executive team responsible for turning Real Madrid into an international powerhouse, warmly greeted me.if we were old friends. He walked me to his office, and as we talked he came across as levelheaded, thoughtful, and analytical, but he had the Latin warmth of a Spaniard and father of four.

I asked Carlos, Did you grow up as a Real Madrid fan?

He chuckled and replied, Before this job, I didnt even like soccer. My background is in engineering and managing engineering-related companies. The president of the club plus my wife and kids had to talk me into taking this job.