Florentino Pérez – Economipedia

Florentino Pérez Rodríguez (Madrid, 1947) is a Spanish businessman who runs the ACS Group and chairs the Real Madrid Football Club.

Given the volume of activity of ACS (Construction and Services Activities), Florentino Pérez presides over the largest construction company in the world. The diversification of its activities and its extensive international presence have enabled the company chaired by Pérez to establish itself as a true world leader in the construction sector.

Florentino Pérez: Civil engineer, politician and businessman

Born in Madrid in 1947, Florentino Pérez trained as a Civil Engineer at the Polytechnic University of Madrid. His first steps in private business led him to chair the Spanish Road Association between 1972 and 1976.

Due to his political concerns, he was a member of the UCD (Unión de Centro Democrático) party. Thus, Pérez held various public positions at the service of the Community of Madrid and the Ministries of Transport and Industry. Finally, in 1983, he chose to return to the private sector.

From an average construction company to a business colossus

It all started when Florentino Pérez and several partners acquired Construcciones Padrós for a price of 5 million pesetas. The progressive expansion of its businesses and the merger between OCP and Ginés y Navarro ended up giving rise to the ACS Group in 1997.

In this way, Florentino Pérez has become head of the ACS Group. During his presidency, the company has positioned itself as a reference leader in the sector.

This success is largely due to a diversification strategy. And it is that the ACS Group has expanded its range of services, taking part in the construction of urban and industrial infrastructures and services.

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In this path of growth and diversification, Pérez has been acquiring successive companies that are dedicated to activities such as waste treatment or public lighting, among others.

The success of ACS is not only due to a wide variety of activities, but also to a wide international presence. The United States, Central Europe, Southeast Asia and Oceania are its main scenarios.

It should be noted that the support of shareholders such as the March family and businessmen such as Alberto Alcocer and Alberto Cortina, who are popularly known as “los Albertos”, have been key in Florentino Pérez’s business career.

Economic management of Florentino Pérez at the head of Real Madrid

Florentino Pérez’s presidency at Real Madrid has been marked not only by sporting success, but also by successful financial management of the club.

There are many great football stars who have worn the white club shirt. Known as “galactics”, these superstars are capable of generating colossal advertising revenue.

Precisely, Florentino Pérez knew how to take advantage of this issue. Unlike other big clubs in Europe, Real Madrid has been characterized by exploiting a percentage of the image rights of its players. Thanks to this strategy, Real Madrid has been able to finance important signings and meet the salary expectations of its players.

However, his transfer and image rights policy was not the only decision that helped improve Real Madrid’s finances.

Upon his arrival at the presidency, the financial situation of Real Madrid was complicated. No previous board had thought of acting on the club’s assets. But Florentino Pérez saw an opportunity on the grounds of the sports city.

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The land that Real Madrid owned was located on Paseo de la Castellana, one of the most outstanding areas of the Spanish capital. Thus, Florentino Pérez managed to requalify the land for urban purposes, which allowed him to sell it for 402 million euros.

Another momentous milestone for the club was the construction of a new Sports City in 2006, the largest built by a football club.

Another great project that promises substantial returns is the investment involved in the construction of the new Santiago Bernabéu stadium. It is a new stadium equipped with the latest technology, an avant-garde design and new shopping and leisure areas.

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