The club formed on March 6, 1902 as Madrid Football Club in Madrid, Spain. The club has chosen white as its home colors since the club's creation. The club name was changed to Real Madrid in 1920 after King Alfonso XIII. The word real means "royal in Spanish.

Real Madrid is estimated to be worth 3.8 billion Euros in 2019 and was the second highest-earning football club with a revenue of 757.3 million in 2019. The Spanish club have amassed 13 European Cup/ Champions League titles, a record of 34 La Liga titles, two UEFA Cups and four UEFA Super Cups.