Jesus Rodriguez-Pomeda

Emotions’ management within the Real Madrid football club business model

Recent changes in the sports industry – derived from increasing financial pressures – have led to the update of existing business models. Particularly in football, the dominant clubs develop new business models based on the spectators’ commitment to the sport. Packed stadiums attract more people who consume both the matches and the many other associated goods and services. In an experience economy, the lever is the tapping of their emotions by an increasingly sophisticated value proposal. Groups of passionate supporters lead the way to the establishment of communities with a common interest in the club. Following a qualitative methodology (interviews and other texts’ analysis) our study of the Real Madrid Football Club (RM) business model suggests that one of the biggest football clubs in the world is creating a business model based on the emotions of its supporters. This finding could be useful for other clubs in many different countries.

The mattress makers: emotions and value proposal in Atlético de Madrid.

Atlético de Madrid (ATM) Football Club has a single-hearted fan base regardless of the sport results, unlike megaclub’s fandoms (like Real Madrid, from the same city) that demand a steady stream of sporting triumphs. Literature is sparse about how second line clubs that must compete with megaclubs from the same city for a fan base develop a sustainable value proposal based on their fans’ emotions. We analyse the content of interviews with followers, TV-ads and financial statements to deal with ATM’s emotional base comprised of eleven emotions. Emotions like pride secure a fandom base loyal to ATM even in the absence of wins. Findings suggest that ATM’s value proposal (based on fandom satisfaction) focuses on a niche of fierce modern-style supporters with emotions attuned to the club’s performance.

Why Do Networks Exist

Organizational change modifies the relationship between the organization and its environment. Using a methodology based on literature revision and analysis, we point out that the growing social importance of networks is related to the shrinking of hierarchy and to organizational knowledge creation. The network response to present challenges has certain virtues: flexibility, smaller costs, and its capacity to diminish the probability of error in decision making. Knowledge use could be characterized as a chain starting with the social capital that shapes the available resources for organizational knowledge. These resources are the networks and the know-how. Networks and know-how are the dynamic delimiters of knowledge creation. The chain closes at this point: knowledge usage is the seed of social capital. Networks are simultaneously social performance instruments and depots of social accumulated knowledge.