Zinedine Zidane announces his resignation as Real Madrid manager. Pierre-Philippe Marcou / AFP
Zinedine Zidane announces his resignation as Real Madrid manager. Pierre-Philippe Marcou / AFP
Zinedine Zidane announces his resignation as Real Madrid manager. Pierre-Philippe Marcou / AFP
Zinedine Zidane announces his resignation as Real Madrid manager. Pierre-Philippe Marcou / AFP

Zinedine Zidane bows out at the very top at Real Madrid. Whoever follows him has a hard act to follow


Andy Mitten
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Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

There has been a recent trend among the best young managers in Spain to step down when they are at the top. The managerial fuse at Barcelona and Real Madrid is a short one – and the top managers know it. Pep Guardiola called time on his Barca career in 2012 after four years in charge when his side were European champions. The Catalan took a year’s sabbatical in New York, learned English, then German, ahead of joining Bayern Munich.

Luis Enrique did similar after his hugely successful three years in charge at Camp Nou between 2014-17. Like Guardiola, the job had worn him down, like Guardiola he left with smiles rather than revealing the stresses and frustrations, the tension of working with star players every day and of having to compromise their principles to appease players.

Enrique had little to prove; he didn’t need the money and he wanted a year where he, too, could polish his English ahead of a return to management, spend more time with his family and friends and then wait for the offers to come in. He is quite content cycling most days close to his home by the coast south of Barcelona.

Zinedine Zidane, 45, has quit with Real Madrid at the very top. The Frenchman has been in charge for less than three years and has won three Uefa Champions Leagues, the most recent of which was secured on Saturday in Kiev.

Zidane also saw his team crowned Fifa Club World Cup champions - the most recent of which was won six months ago in Abu Dhabi - twice and won La Liga in 2017, the trophy he was most proud of even though the Champions League is seen as more important. He leaves a the Bernabeu a hero and on his own terms. He knows there is always an appetite for him to return, that the bridge hasn’t been burned.

“I am doing this for the good of this team, for this club,” Zidane explained in a hastily arranged press conference at Madrid’s Valdebebas training ground. “It would have been difficult for me to win again next year. There have been good moments, but also difficult times. I do not forget that. And at this club you must know this: I do not want to start a season and have a bad time; I want to end with Real Madrid when everything is going well. I did it as a player, and now again as a coach. This the right moment to end things well.”

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Read more:

Pochettino on Real Madrid's radar to replace Zinedine Zidane as manager

In pictures: Real Madrid celebrate winning the Uefa Champions League in Spain

Hat-trick of Uefa Champions League titles underlines Zinedine Zidane's credentials as a managerial great

Gareth Bale's Champions League final heroics delivered in defiance amid uncertain Real Madrid future

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Managing Madrid or Barcelona would put a vast strain on anybody. Bobby Robson and Terry Venables, who both managed at the top level in England, said it was far more stressful in Catalunya.

Guardiola aged significantly in his four years and while Enrique chose to distance himself from the media, to be as dispassionate as possible, the pressure still told.

Zidane felt he had to step down so that “this team must continue winning. It needs a change that will be good for everyone. The team needs another methodology and that is why I have made this decision. For me and for everyone, today, a change is needed and that is why I have reached this decision. I am grateful to the fans.”

Zidane explained some of his reasoning.

“There are difficult moments when you can wonder whether you are the right person still,” he said. “I do not forget the hard times, as well as the good times, and that makes you reflect. And this is the right moment to leave. The players need a change; I want to thank them too, as in the end they are the ones who fight on the pitch. This is a demanding club; it’s not easy for them, with this great history.”

The Frenchman, a legendary Madrid player, also described some of the burden that rests on the players.

“We always want more from the players, and a moment comes when I cannot ask them for more,” he said. “They need another voice, to return to winning again.”

Madrid have been serial winners and they were even before Zidane took control. Their squad remains packed with experience and they will get a top manager to replace Zidane. Yet the Frenchman has set the bar so high that it’s going to be almost impossible for whoever follows him to compete with his achievements.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017