It was founded in 1902 as Madrid Football Club and has traditionally worn a white home kit since. The word Real is Spanish for royal and was bestowed to the club by King Alfonso XIII in 1920 together with the royal crown in the emblem. The club established itself as a major force in both Spanish and European football during the 1950s.

Unlike most European football clubs, Real Madrid’s members (socios) have owned and operated the club since its inception. The club is the world’s second most valuable football club, worth €1.4 billion, and the richest in terms of annual revenue, generating €438.6 million in 2011. Real Madrid holds many long-standing rivalries, most notably El Clásico with FC Barcelona. The team has played its home matches in the 85,454-capacity Santiago Bernabéu Stadium in downtown Madrid since 1947.

source: Wiki