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David vs. Goliath: SD Eibar vs. Real Madrid

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This weekend features an interesting matchup in LaLiga between SD Eibar and Real Madrid.

 

It is a fascinating match to analyze from a business perspective given that these two clubs couldn’t be more far apart from a financial standpoint.

 

SD Eibar operates one of the smallest budgets in Spain’s top-flight football yet the Basque club continues to consistently deliver strong performances on and off the pitch. In fact, the SD Eibar business model has been analyzed in some of Spain’s top business schools.

 

Although most people are familiar with Real Madrid’s economic success not many are aware of the excellent financial management of SD Eibar. The club has been debt-free for numerous years and it consistently posts healthy financial figures. In fact, in one year the club has increased its annual turnover by over 10 million euros, an impressive figure considering its evident limitations in comparison to other football clubs in LaLiga.

 

The city of Eibar has 27,000 inhabitants, which put into perspective means that the entire town could easily fit inside Real Madrid’s stadium on any given day. In contrast, SD Eibar’s home ground of Ipurua is the smallest venue in LaLiga with a capacity of just over 7,000.

 

From a commercial and broadcasting revenue standpoint both clubs are also light years apart. In this sense, much like all clubs in LaLiga, SD Eibar has benefited greatly ever since Spain switched from an individual to a collective model for commercializing the league’s TV rights.

 

Overall it promises to be an exciting matchup. As per usual, all odds are stacked against SD Eibar this weekend vs. Real Madrid, however, this club is used to proving that a club that is well-run on and off the pitch is capable of anything.

 

 

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