Real Madrid are the best-run club in world football, aren't they? They are serial winners, emerging victorious from six of the last 11 Champions League finals, and the trophy cabinet at the Santiago Bernabéu boasts 36 LaLiga titles and 15 European Cups among countless others. They have defined elite performance for decades, and maintained that success in this challenging, 21st century era of mega-rich investors and state-sponsored super clubs.
Under the shrewd management of president Florentino Pérez and director general José Ángel Sánchez, Madrid have built a new team packed with a mix of up-and-coming and ready-made stars: Vinícius Júnior, Jude Bellingham, Kylian Mbappé, Federico Valverde, Eduardo Camavinga, et al. They have done so while continuing to turn a profit, even when earnings were hit hardest by the COVID-19 pandemic.
In the past five years, they've been able to build a state-of-the-art, €1 billion stadium in the heart of the Spanish capital without compromising the team's on-field success, minimising disruption for fans by staying on site -- unlike rivals Barcelona's temporary switch from Camp Nou to Montjuïc -- while accumulating only long-term, manageable debt.
But this season, Madrid's reputation for near-flawless management has taken a hit. On the pitch, the team has struggled. They're six points behind LaLiga leaders Barcelona and 18th out of 36 teams in the new-look Champions League table. Long-awaited star signing Mbappé's integration has been far from seamless, with critics blasting his modest goal-scoring return, off-the-ball work-rate and its knock-on effect upon other key players.
The construction of the squad has been scrutinised, with an injury crisis leaving the team short in defence and the midfield underpowered following the unexpected retirement of mainstay Toni Kroos. And talking of construction, the new Bernabéu's status as a proposed 365-day-a-year entertainment hub has been called into question, after neighbours' concerns over noise forced the club to put concerts at the venue on hold until mid-2025.
Internationally, Madrid's decision to angrily boycott the 2024 Ballon d'Or ceremony last month, when Vinícius missed out on the men's award, was met with bemusement. And in the background, there's the unresolved standoff with UEFA over the dormant Super League project. Overseen by Pérez, the initial launch and subsequent aborting of the breakaway was widely viewed as a PR disaster, but has since received some judicial backing.
Pérez is expected to address all these topics in his speech to members at Real Madrid's annual general assembly (AGM) on Sunday, taking a typically robust approach to the club's critics. There have also been suggestions that he will present proposals for changing the club's membership-based ownership structure, one of its defining features since its foundation.
The combined impact of these on- and off-field issues leaves Madrid looking vulnerable, and uncertain, in a way that this historic, often all-conquering club isn't used to.
The Squad
OK, so Real Madrid's 2024-25 season hasn't been that bad. It's November, they're second in LaLiga, six points behind Barcelona, with a game in hand. In the Champions League, they're mid-table, on six points after four games -- the same as Bayern Munich, AC Milan and local rivals Atlético Madrid -- with every chance of progressing to the knockout phase.
But this is Real Madrid, where second-best isn't good enough, let alone mid-table. The team's overall standard of play has set alarm bells ringing since the start of the season -- they looked toothless in 1-1 draws at Real Mallorca and Atlético, failing to create a single big chance in either game, for an xG (expected goals scored) of 0.6 and 0.76 respectively. Then two back-to-back defeats in 10 days, 4-0 at home to Barcelona and 3-1, also at home, to AC Milan, sent Madrid into full-blown crisis mode.
In defence, midfield and attack, there are unresolved issues. A string of injuries, most notably season-ending ACL tears to both Dani Carvajal and Éder Militão, has left the team understaffed in defence. There is no adequate replacement for Carvajal -- back-up Lucas Vázquez is out for a month, anyway -- while at centre-back, captain Nacho's departure in the summer means Antonio Rüdiger is the only available, top-level option until David Alaba returns to fitness.
Multiple sources told ESPN that the squad's weaknesses had already been identified, but not remedied, in the summer. Coach Carlo Ancelotti is a club man, refusing to complain in public, but sources said that his requests for reinforcements during the last transfer window were ignored. Mbappé and teenage forward Endrick were the only summer additions. A deal for defender Leny Yoro was hijacked by Manchester United, with Madrid unwilling to match the financial package offered by the Premier League club.
Alex Kirkland reacts to the injuries suffered by Rodrygo & Éder Militão in Real Madrid's first half against Osasuna.
The lack of alternatives available to Ancelotti means his remaining players have been overused. Rudiger has already played 997 (of a maximum 1,080) minutes in LaLiga this season. Militão had played 940 before his injury against Osasuna on Nov. 9. Multiple sources within the club told ESPN that they believe Militão's injury was a result of being overworked, having previously suffered an ACL tear in his other knee a year earlier.
In midfield, Madrid can field an impressive array of talented players -- Bellingham, Valverde, Camavinga and Aurélien Tchouaméni would play for any top club in Europe -- but none can replicate Kroos' skillset. As a result, 39-year-old Luka Modrić, who was eased out of the team last season, has played 593 minutes -- five starts, and seven substitute appearances -- to become the oldest player ever to represent the club. Tchouaméni in particular is out of form, under pressure from fans, and now injured again.
In attack, Mbappé has underwhelmed, and his unwillingness to track back has been contagious. The team's collective defensive solidity, a hallmark last season as they cruised to a LaLiga/Champions League double, has been undermined. In four Champions League games so far, Madrid's opponents have managed 26 shots on target. Only six of the league phase's 36 teams have conceded more. The figure compares to Arsenal's six shots on target against, Bayern Munich's nine, Manchester City's 11 and Barcelona's 14.
Compounding the above is the club's stubborn refusal to stray from their long-term strategic plan for signings, or react to circumstances. Sources have told ESPN that Madrid are now reluctantly looking to strengthen their defence in January, although there's a recognition that recruiting the calibre of player the club would usually target may not be possible until next summer, when Trent Alexander-Arnold and Alphonso Davies would be available on free transfers. And while defensive signings might help in the short-term, they won't resolve the issues higher up the pitch, or off it.
The Stadium
The website for the newly rebuilt Santiago Bernabéu makes a bold claim: "Anything you can imagine will happen here." Except, it turns out, hosting concerts.
Part of the rationale for the stadium's ongoing redevelopment -- which began in 2019 at an initial cost of just over €1bn (eventually rising to around €1.75bn), with interest to be repaid over 30 years -- was the promise to make this much more than just a football stadium. The new Bernabéu would be a world-class venue for other sporting and entertainment events -- promotional materials included images of the stadium holding NFL and NBA matches, tennis tournaments and concerts -- generating year-round income, and helping to repay those spiralling costs which had initially been estimated at just €525m.
To help achieve these goals, Real Madrid signed a deal with investment firm Sixth Street and event specialists Legends in 2022, handing over 30% of the club's income from events at the Bernabéu in exchange for a €360m fee and the benefit of Legends' experience in hospitality.
A first, trial concert was held at the stadium on April 26, 2024. Then Taylor Swift brought her "Eras" tour to Madrid for two nights in May, before Reggaeton star Karol G broke records with a four-night stint at the Bernabéu in July. But by then, frustration from neighbours over noise levels and antisocial behaviour associated with the concerts was already making headlines.
In July, a judge agreed to hear a complaint from a neighbours' association against Real Madrid Estadio SL, the company created to manage the stadium, alleging an "environmental crime." On Sept. 13, ahead of an October court hearing, the club announced that all remaining concerts planned at the Bernabéu were being "provisionally reprogrammed."
"This decision forms part of a series of measures the club has taken to assure strict compliance with current local regulations during concerts," Real Madrid said in a statement. "Despite the soundproofing at the Santiago Bernabéu, and the reinforcement measures which have been undertaken, compliance with those regulations on behalf of the various organisations and promotors has been affected by the major challenge they represent.
"Real Madrid will keep working so that during concerts, the precise conditions in production and sound emission are met in order to allow concerts to take place at our stadium."
One club source described the situation to ESPN as "a mess." The task of ensuring concerts can take place within legal limits, in such a densely-populated residential area -- the stadium is flanked by apartment blocks -- is considerable. And this is a wealthy neighbourhood full of influential, well-connected residents, whose complaints will not be easily ignored by local government.
"Our windows shake," a neighbour, who asked not to be identified, told ESPN when asked to describe the concerts. "And we live 200 metres from the stadium."
The neighbour added that their family had no issues with football matches taking place or even other kinds of events, "but we're against being inside our homes, and not being able to live. Because it's unbearable. It isn't living."
There have already been legal consequences, as the first fines were issued by Madrid town hall last month. A total of 11 fines had been handed out, the town hall said, to the promoters of concerts held at the Bernabéu between April and October 2024, for exceeding noise limits. The fines ranged from €17,000 to €148,000, totalling €801,000, and were classed as "very serious," the town hall said. It called on Real Madrid "to take the necessary corrective measures that will minimize the inconvenience caused by the concerts."
Concert organisers have hit back at the implication that they are to blame for the problems, rather than the stadium itself. "Statements accusing musical promoters of being responsible for the acoustic violations caused by concerts held at the stadium are generating a climate of mistrust in our sector," Spain's Association of Musical Promoters said on Oct. 31. "Musical promoters don't control the structure, the remodelling or the soundproofing of a venue.
"All events held at the Santiago Bernabéu held the relevant permits and were managed in direct collaboration with those in charge of the stadium. Responsibility for preparing a venue acoustically lies with them, guaranteeing that the space complies with sound levels before its use for live music concerts. Blaming the promoters for noise problems is, as neighbours have said, dodging the issue."
A club source told ESPN that they were doubtful as to whether sufficient changes could be made to ensure that future concerts could take place without further breaches of the law. However, other sources said that Pérez has remained calm, believing that all these issues would be overcome.
It's important to stress that concert revenue represents a small percentage of the income generated by the new stadium. Other corporate events continue to take place and revenue from match-going fans, stadium tours and the Bernabéu's expanded club shops and restaurants -- due to be completed this season -- will grow in 2024-25. The Bernabéu's rebuild has already won plaudits for its futuristic metal façade, its retractable roof and pitch, and its 360-degree giant screen. In September, it was named the world's best stadium at the World Football Summit. A behind-the-scenes documentary on the project, "Megastructures: the Bernabéu of the 21st century," will premiere on Disney+ next month.
But noise from concerts isn't the only concern. In September, a judge ordered the suspension of work on two new underground carparks linked to the Bernabéu -- projected to be another significant revenue stream for the club -- after a legal complaint by local residents. And six months after the stadium's flagship new VIP 'Skybar,' described in the press last year as "a multi-use space with a New York-style ambience, where you can dine, have a cocktail and dance until the early hours," was due to open, it remains shuttered. A post on the Skybar's Instagram page on Oct. 24 promised its opening "very soon."
Gab Marcotti explains why the court ruling that UEFA and FIFA can't block the Super League doesn't mean it will happen anytime soon.
The PR crises
If the row over concerts has mostly been a local issue, Madrid's international reputation has suffered thanks to a number of high-profile recent decisions that have affected the club's relationship with football's biggest institutions.
The most damaging was Real Madrid's pivotal involvement in the project to launch a breakaway European Super League, owned and operated by its member clubs, to supplant UEFA's Champions League. Pérez's presentation of the project, in a chaotic appearance on late-night Spanish radio show "El Chiringuito" in April 2021, was seen -- alongside widespread opposition from fans of the Premier League clubs involved -- as being key to its initial failure. The Super League was subsequently rebranded and relaunched, and received a boost in December 2023 when the European Court of Justice found that UEFA's previous rules on authorising new competitions had been unlawful and an abuse of the governing body's dominant position.
"From today, clubs will be masters of their own futures," Pérez said, triumphantly, ignoring the fact that English clubs had already publicly distanced themselves from the project. A22 Sports, the company tasked with selling the Super League idea, then rolled out its updated proposals. Looking to win over doubters, there were promises of merit-based inclusion for clubs and games being broadcast for free on a new streaming platform, funded by advertising.
Madrid and Pérez remain committed to the Super League, sources told ESPN, and believe reform in the European club game is inevitable sooner rather than later. Pérez is personally determined to see it through, having claimed football "won't survive" without the Super League and calling UEFA's new Champions League format "absurd." However, there is also a recognition that the absence of Premier League clubs would make the project unviable.
Real Madrid's total relationship breakdown with UEFA was highlighted again last month, with the club's decision to boycott the ceremony for the 2024 Ballon d'Or after it became clear that Vinícius would be beaten to top spot by Manchester City's Rodri. It wasn't enough that Madrid players Vinícius, Bellingham and Carvajal had all finished in the top four, that Ancelotti had been named coach of the year and Madrid team of the year. The failure to award Vinícius the prize -- decided in a vote by a 100-strong panel of international journalists -- was taken as an insult, as was the refusal by France Football, which co-organises the prize with UEFA, to confirm the fact to Madrid ahead of time.
Multiple sources told ESPN that some influential voices had opposed the club's decision not to travel to Paris for the ceremony. However, there is a consensus within the club that Vinícius missing out on the award was an outrage, and that UEFA -- which was involved in the ceremony for the first time this year -- had somehow played a part in how events unfolded, the latest salvo in their ongoing confrontation with Madrid.
The "ESPN FC" crew react to Real Madrid's decision not to attend the Ballon d'Or ceremony where Manchester City midfielder Rodri won the award over Vinícius Jr.
The Future
Sunday's AGM is a rare opportunity for Madrid's members -- who are the club's owners -- to question the president and the board over their stewardship face-to-face, as well as approving the club's accounts for the previous year and its budget for the next. In practice, however, there has been little opposition or discontent expressed in recent years, a reflection of Madrid's positive trajectory and Pérez's deep-rooted powerbase.
Since his return to the presidency in 2009, Pérez has been re-elected unopposed four times. The requirements for presidential candidacy are stringent, and support for Pérez among members is overwhelming, so much so that in his speech at last year's AGM, as well as taking shots at UEFA, referees, LaLiga and Barcelona, he was able to trail a radical proposal to transform the club's ownership with relatively little fallout.
"I'm going to work on bringing you an organisational structure which will protect Real Madrid," Pérez said in November 2023. "A structure which protects and shields Real Madrid's financial assets, and those of its members. We're going to design and create the necessary strengthening mechanisms so that Real Madrid keeps belonging to its members, not in a romantic way, but truly and forever... which allows us to resist hostile manoeuvres with strength."
Madrid are one of just four clubs in Spain -- alongside Barcelona, Athletic Club and Osasuna -- that are not legally required to become sociedades anonimas deportivas, or public limited companies. The club is an association owned by its members, its socios. Any change to that formula would be hugely significant.
If Pérez fleshes out his proposal in Sunday's speech, it would mean more controversy at a time when the club is already facing challenges on all sides. But if anybody has the power and determination to see it through, and the track record of achievement to successfully back up his case, it's Pérez.