What’s the story?
Real Madrid have today announced telecommunication giants Telefonica as their official digital sponsor. The Spanish telecommunications provider has signed a two-year deal with the Santiago Bernabeu outfit which will commence now and will last until the end of next season. As per the official statement by Los Blancos, Telefonica are their connecting partner.
The new venture was announced by Real Madrid in a press conference, which was attended by club president Florentino Perez along with Telefonica president Jose Alvarez Pallete and members of the first team squad of the football and basketball teams.
Speaking in the press conference, Florentino Perez said: “Telefónica and Real Madrid have sealed an important deal today that is founded on faith and loyalty. Telefónica, one of the most prestigious companies worldwide, will be a great ally and technological partner. Together we will be stronger as we conquer the future. This deal looks to strengthen our ambitions for today and tomorrow.”
In case you didn’t know...
Telefonica are one of the biggest telecommunication providers around the world and have their headquarters in Madrid. According to reports in Spain, the two-year deal between Los Blancos and Telefonica is worth €15 million. Another report in Spanish daily El Pais (h/t Sport) suggests that the deal is the largest advertising deal signed in Spain.
The heart of the matter
The deal between Telefonica and the Santiago Bernabeu outfit is not for the main shirt sponsorship – as Real Madrid already have a deal in place with Fly Emirates for that. Further to that, Telefonica also have a deal in place with Real Madrid’s biggest rivals FC Barcelona for South America.
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As part of the deal between the two giants, Telefonica will be granted access to the image rights of the players and the club while the telecommunications giants will install Wi-Fi across the Santiago Bernabeu apart from developing an app for Real Madrid fans.
What's next?
The deal will provide a further boost to the already impressive riches at Real Madrid’s disposal, while it will provide Telefonica with a huge audience base to try and market several of its products to.
Author’s Take
Real Madrid are one of the biggest clubs in the world and as such attract some of the biggest sponsors. This new deal is one of the many ways that clubs across Europe try to increase their commercial revenue, which then helps them in acquiring top talents.
