Cristiano Ronaldo, Champions League Final, Rome, May 27, 2009 (AFP)

Evidence of football's irrational market

After more than a year of rumours Manchester United player Cristiano Ronaldo is finally set to join Real Madrid for the unprecedented sum of €93 million. Both in England and Spain commentators are asking whether astronomical transfer fees make any business sense.

Published on 12 June 2009 at 16:47
Cristiano Ronaldo, Champions League Final, Rome, May 27, 2009 (AFP)

Author and sports columnist Simon Kuper has written a column in the Financial Times on the event. Elsewhere, Madrid daily ABC argues that there are "sound business arguments" for the transfer fee paid by Real Madrid for Cristiano Ronaldo, and "what appears to be an overblown price may prove to be a bargain." The report in the conservative daily acknowledges that such a huge sum might appear shocking, especially in the context of the current economic crisis, but it is much less questionable than some of the enormous gains made by speculators in stock and financial markets. In buying Ronaldo and the Brazilian Kaka (for 68 millions euros), Real Madrid chairman Florentino Pérez has masterminded "two media events that confirm the football club as a brand leader, which is far ahead of its competitors," says ABC. The cost of the transfers should be analyzed in purely economic terms, because "football is now a huge leisure industry (…) which forms part of an entertainment market where values are much more predictable than they are on the stock market."

Tags

Was this article useful? If so we are delighted!

It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans.

Discover our subscription offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic