Gareth Bale transfer saga

Lex wrote:We, a CL established team, struggle to sign players, and people think Spuds stand a chance? Cos they have 100 billion dollars?

Lex wrote:We, a CL established team, struggle to sign players, and people think Spuds stand a chance? Cos they have 100 billion dollars?

Firenze wrote:Arsene Wenger believes it would make a "joke" of Financial Fair Play if Real Madrid paid £105million for Gareth Bale.

Hey all I am a Madrid fan, long time voyeur of your forums as I feel you generally have the best information at hand concerning the deals taken place recently ie Modric and now with the rumours surrounding Bale.

I saw quite a few people asking about the money and whether or not Real Madrid can afford such a sum, so I thought I would give out a detailed analysis for those wondering.

Since Perez has taken charge again he has spent on average €76,500,000 per year on transfers, that includes the first season in which he bought Kaka and Ronaldo for vast amounts of money.

So far this season our spending has been as follows:

In:
Casemiro €6m
Carvajal €6.5m
Isco €27m
Illarramendi €32m
Promoted: Jese, Morata, Nacho, Denis
Total Spend: €71.5m

Out:
Essien (Loan Return)
Carvalho (End of COntract)
Pedro Leon €6m
Callejon €10m
Albiol €12m
Negredo Clause €4.4m
Higuain €40m (I included the variables for Isco and the same for Higuain)
Total Sold: €72.4m

That puts €900,000 in the bank in terms of transfers. We also have a squad size of 26 and rumours of Coentrao on the way out. Also other rumours whether you should believe them I don't know, say that one of Kaka or Di Maria will be shuffled out if Bale comes, maybe even both. So we easily have €100m in the budget.

In terms of debt for our club we have only €120m left in hard debt and we are only one of a few clubs in Spain that has paid all it taxes to date. Also Real Madrid ranks as the most solvent football club in the world thanks to solvency ratios of 0.8 Net Debt/EBITDA and 0.5 Net Debt/Net Assets. So financially we can easily afford the outlay for Bale.

Another matter that you may not be aware is the Real Madrid is owned by the members, all revenue gets pumped back into the club, the President even has to pay to be the president and does not receive a salary to do so. The reason Perez ran unopposed for the Presidency recently is because to even get into the running you have to put down a large financial outlay into the clubs coffers.

In terms of why Perez wants Bale, well not to mention he is a fantastic footballer, he is also tipped to make huge inroads in his marketing viability. Some estimates say he will earn around €11.5m in endorsements alone this coming season, in comparison Ronaldo earns €17m every year in endorsements. Perez will believe with the branding of Madrid behind him, Bale could easily catch Ronaldo considering age and performances.

Now this may seem like common sense, but not many people know is that before every major outlay Real Madrid makes they do a complete financial viability and marketing run-up on a player. A report commissioned by Weber Shandwick Sport showed that Real Madrid gain an extra €71m in annual revenue from the purchase of Kaka alone through shirt sales, sponsorship revenue and match ticket sales. Even though he has been abhorrent on the field of play if Kaka even came close to 1/3rd of that assessment then he would of paid not only for his transfer but all his wages too.

In terms of Ronaldo his purchase alone led to more VIP tickets sold, before the Ronaldo era we averaged 3000 empty tourist/VIP places per match, filling those seats alone netted us an extra €10m a year. The shirt logo BWIN agreed to double it's sponsorship fee and extend the contract by an extra year and ADIDAS did something similar We added a lot of new sponsors on top of that as well. I don't doubt that ADIDAS and Emirates won't renegotiate deals if we manage to get Bale as well as having the upper hand in other sponsorship areas, then you factor global branding shirt sales and everything that Real Madrid does so well and you can see why Perez and the Real Madrid board think they can easily outlay for Bale.

There is a reason why Real Madrid is the #1 most valuable sports brand in the world.

In terms on what I think of the whole saga I wouldn't put much stock in Marca at all and it isn't the mouthpiece of Madrid many of you think it is. There has been huge arguments between MARCA and Madrid over the past couple of seasons and a lot of bad blood. In terms of our players making comments on the matter it is usually after a reporter has asked them about the subject five times previously. Have a look how many times Ancelotti was asked about Bale over the full course of the press conference. He is a wonderful player but I'm just not sure where he would fit into our line-up. I guess time will tell if there is anything to this story or not. Any questions feel free to ask.

The information in this is freely available on Forbes or Real Madrid's finances which are public knowledge. Hope I didn't piss too many of you off by posting on your forum.

The_Badger wrote:How come Ronaldo's endorsement earning have changed from the original claims?

Crimson wrote:

BarrileteCosmico wrote:I'm not sure if I get the marketability argument some Madrid fans are putting forth. Neymar was named the most marketable footballer earlier this year and yet many Madrid fans were laughing historically at his price - yet now that it's about Bale, a much less marketable player for reportedly twice the price, he "pays himself off"?

If you're quoting that half arsed article on athletes then I'm going to have a laugh. The same one that posted Ronaldo 9th?

Here's some facts in terms of money made from endorsements over the last year in US dollars:

Ronaldo $22m
Messi $19m
Neymar Uncertain but his entire earnings were only $19m lol, less than what Messi and Ronaldo made from endorsements alone.

Bale $15m already, put him in a club like Madrid and I can see that increasing a fair amount.

Not to mention what it's worth in terms of sponsors and renegotiations in terms of kit sponsorship and tv marketing deals.

Don't take Real Madrid and Perez for a fool they know what they are doing.

sportsczy wrote:We're rich as frak... just deal with it peeps.  We're also not a for-profit organization.  As Crimson said, everything we make has to be reinvested in the club.  That could mean players, facilities, pay debt, etc.

We can afford pretty much anyone.  But does that mean that spending over 100 mil on Bale is the right thing to do?  IMO, only if there's chance CR7 is leaving.  Otherwise, i have no idea what we're doing.  This is not a knock on Bale.  It's just doesn't make sense in terms of roles on the pitch.  

But Flo often leads with making money and lets the manager deal with the aftermath.  So it's up to Carlo to figure it out.  No idea how

Tomwin Lannister wrote:Putting the price aside for a second (Hard to do I know )

Do you think Bale is a good addition to your team? Or do you think it could end up negatively impacting the team in some way. I.E. there's no way both Bale and CR7 can continue to have so many shots.

sportsczy wrote:I think Flo's feelings got hurt with Neymar  and he wants to outsplash Barca in the summer... it may sound dumb.  But Flo always wants Madrid to be seen as the big dog in Spain in terms of perception.  

Completely messes up the roster though.  A very good player or two are going to be sacrificed as a result of Bale coming imo.  I don't even see it tactically yet unless CR7 goes to CF... which Carlo said he won't do.  So who the frak knows.