For a billionaire director of ACS, the a construction, engineering and energy conglomerate that employs 150,000, operates in 50 countries and had revenues last year of just over €4 billion, a third of that profit, Florentino Perez does not live like one. His favourite dish consists of the exotic British fried egg and chips.

The new Real Madrid president lives in the results business, first signing AC Milan midfielder Kaka for €68m and now he looks set to break the world record of €75.1m he paid for French playmaker Zinedine Zidane by signing Cristiano Ronaldo for €94m.

Such high-profile signings come in the first few weeks of his presidency, players, who former president Ramon Calderon (now being investigated for voting irregularities) pined after for two years, failing to sign either and alienating the selling club to the extent that Manchester United manager Sir Alex Ferguson said:

Do you think I would enter into a contract with that mob? No chance. I would not sell them a virus. That is a ‘no’ by the way. There is no agreement whatsoever between the clubs.

Perez is undertaking a high-risk strategy, which he hopes will multiply the club’s profit through merchandising, shirt sales, sponsorship revenue and increased ticket sales due to the high-profile image of Kaka and Ronaldo.

Perez believes that along with increasing ticket sales, the debt-laden accounts can be improved through increasing bank loans. Spanish savings bank Caja Madrid admitted that it has agreed to give Real Madrid a €76m (£64m) loan to be secured on two unnamed sources of collateral. Madrid are also understood to have a similar deal in place with Banco Santander.

Florentino Pérez, the new president at Real, is also believed to have the ­backing of the Catalan savings bank La Caixa, which provided the ­formal €57m deposit-guarantee he needed to stand for the presidency. The club’s status as a non-profit social trust means banks will not apply the same pressure for repayments as they would to other clients. Stefan Szymanski, an economics professor at the Cass Business School in London:

Real’s really too big to disappear, whatever debt they can incur. No bank would ever be allowed to be the bank that sank Real Madrid

In addition, their domestic television rights contract with MediaPro is worth a reported €1.1 billion over seven years. Clubs in England negotiate their television deal together, meaning the bigger clubs get a smaller income from television money than they would if they negotiated individually as Madrid do. This is what makes MP Andy Burnham’s plea for wealth to be more equally distibuted among Premiership clubs even more surprising. If only the Everton fan would look abroad to Real’s dominance in Spain.

It appears the balance of footballing power will shift from England to Spain, with clubs able to exploit tax legislation (originally intended to attract multinational corporations and their executives to Spain) which allows their foreign players to pay tax at around 23 per cent for the first five years that they are in the country. In comparison, players in England will lose 50% of their earnings to tax, while the tax on high-earning workers in Germany and Italy lies around the 40% mark.

The image rights of the players in the initial Galacticos project meant the club and the player split any income from such sources 50:50. Yet, it appears Cristiano Ronaldo wants a larger portion of the income from any endorsements. Madrid are refusing, admitting that appeasement would render their high-risk model as potentially economically unviable. Ronaldo, who could receive up to £211,000 a week, seems to want to make as much money as possible from a club, which he declares is his dream. How could anyone call him a mercenary? In contrast, Kaka will receive a measly €9m a year.

The restructuring of the playing staff is another method in which Madrid aim to improve the accounts of the club. The Dutch (van Nistlerooy, van Der Vaart, Robben, Drenthe, Sneijder, Huntelaar) clique is set to be sold as the club look to sign Ribery, Alonso (very unlikely) and David Villa. The focus on big names and attacking players has led many critics to suggest that the side will become imbalanced, as was the case in the latter part of Perez’s first presidency, after Makelele was sold, with the president pouring scorn of Makelele’s abilities:

We will not miss Makelele. His technique is average; he lacks the speed and skill to take the ball past opponents, and ninety percent of his distribution either goes backwards or sideways. He wasn’t a header of the ball and he rarely passed the ball more than three metres. Younger players will arrive who will cause Makelele to be forgotten.

The declining Paolo Cannavaro has signed for Juventus and is expected to be replaced by Ezequiel Garay, who was on loan at Santander last year. The German Christoph Metzelder, who criticised the sum expected to be paid for both Ronaldo and Kaka, is set to leave along with the ailing Argentine Gabriel Heinze. Reinforcements such as Alvaro Arbeloa have been mentioned, yet this would lead to an oversupply of right backs, and an imbalance. The injured Mahamadou Diarra is also reported to be on the exit list, although he is viewed as an important part of the defensive solidity required.

The unfortunate Javier Saviola, who has barely played in his two years at the Bernabeu, is also set to depart. Gonzalo Higuain, Madrid’s top goal scorer and best player last season, does not represent the high-profile player Perez desires. Instead, he has been mooted to be a part of a player + cash deal for the vastly overrated Zlatan Ibrahimovic.

While many players will leave, it is still inconceivable to think that one of Raul, Guti or Salgado will leave, given that the trio have a huge say in political matters of the club. Their votes in elections (although given that Perez was the only candidate who would guarantee the €57m deposit, he was made president without any vote) are equivalent to 50 of the normal socios, thus making them the playing equivalent of the club directors.

Along with such political power, Salgado is married to former president Florentino Perez’s daughter; Raul is the nephew of another ex-president in Lorenzo Sanz and Guti is the best friend of the two giving him equal influence. Raul was reported to have vetoed Valencia striker David Villa’s prospective move to Real last summer, recognizing him as a clear threat to his position in the Madrid starting XI. Yet, Perez, who is a far more assertive figure than former president Ramon Calderon seems set to overrule Raul’s view on the signing of the clinical Villa this time around.

While Perez’s economic model will help increase revenue streams and the overall value of the club, the sporting structure has once more been criticised. The instalment of Jorge Valdano as sporting director and Zinedine Zidane as advisor to the president questions how wide-ranging the influence of new manager Manuel Pellegrini is and whether future signings will be completed under his suggestion.

The pressure on the manager will be intense, as many have realised in Perez’s previous reign. Vincente Del Bosque won 7 trophies, yet was sacked after he failed to win the Champions League in 2003. Madrid then went through several managers as the club became associated with a lack of organisation, a hugely imbalanced squad and discontent among the ranks. Perez will do well to learn from past mistakes as the club look set to take on treble winners Barcelona, who will strengthen themselves this summer. Zidane said upon the sale of Makekele:

Why put another layer of gold paint on the Bentley when you are losing the entire engine?

The same principle applies this time around. Perez must strike an economic and footballing balance, in the summer prior to what could be one of the most interesting title races in years.