Gohan
Super Saiyan
Finally someone who gets it.
Gareth Bale
- Thread starter Caluhu
- Start date
Finally someone who gets it.
S7_MUFC
New member
Yup players also earn money by playing well and improving the brand of the club.....but clubs like Real,Barca and United are so popular that addition of individual player doesn't make significant difference to the revenue....for example Real were already earning highest revenue before signing Kaka,Ronaldo e.t.c. These clubs are so popular that marquee player make no difference to their revenue....that's why United haven't made any marquee signings.........
Deco 20
Scandinavian 101
Here's Madrid's revenue growth in the last 7 years:
I really don't think Kaka made a 65 million difference himself. As always, success brings money more than anything else. The contribution of individual transfers is highly overestimated.
I agree. A cheap player that performs well might bring in much more money than a high profile player that is a complete failure because the failure would bring negative connotations whereas the successful player might not be as high profile from the start but wouldn't cost as much (transfer + wages), would help the team in the short term and would (if marketed correctly) give a good return through shirt sales and commercials/ads.
S7_MUFC
New member
Here's Madrid's revenue growth in the last 7 years:
I really don't think Kaka made a 65 million difference himself. As always, success brings money more than anything else. The contribution of individual transfers is highly overestimated.
Exactly...Their revenue was going up at incredible rate even before that crazy transfer spree....and another thing to note is United's revenue is going up at similar rate even without Ronaldo and with less revenue from UEFA competitions.....
Catorce
Cruijff's Heir
Between 10 - 12 euros per shirt has been a relatively accurate figure it seems. Even if Ronaldo/Messi/Neymar/Bale would be able to generate 2 million shirts sold, that doesn't cover costs as much as a lot of people think. A lot of ignorant people would say '80M, he earns his fee back in shirt sales within a year', but that is just simply not true. Fools.
Beast
The Observer
How many times do we have to say the value of the player return is not just the shirt sales ?
you lot are totally blind or have a memory of a fish
... for the gazillion time :
example
if you are a club and planning to be sold .. will the value of the club be the same if you have your squad filled with the likes of Sterling , Wilshere , Motta etc or Ronaldo , Kaka , Bale ?
Having those big names guarantee extra revenue for the club when they negotiate events , friendly games , sponsorship (shirts , stadium banners , official carrier , official water etc ) , VIP areas in the stadium
+ the club image right from the player own endorsement deals as we take 50 % of anything using their images every damn year, so Kaka Adidas deal , Giorgio Armani deal etc generated much more revenue then his shirt sales needless to say Kaka popularity in Asia is quite big
It's not just the shirt sales ffs ...
you lot are totally blind or have a memory of a fish
... for the gazillion time :
example
if you are a club and planning to be sold .. will the value of the club be the same if you have your squad filled with the likes of Sterling , Wilshere , Motta etc or Ronaldo , Kaka , Bale ?
Having those big names guarantee extra revenue for the club when they negotiate events , friendly games , sponsorship (shirts , stadium banners , official carrier , official water etc ) , VIP areas in the stadium
+ the club image right from the player own endorsement deals as we take 50 % of anything using their images every damn year, so Kaka Adidas deal , Giorgio Armani deal etc generated much more revenue then his shirt sales needless to say Kaka popularity in Asia is quite big
It's not just the shirt sales ffs ...
footyfan
Calma, calma
No matter what the club image rights are, you can see from the revenue figures that Madrid's growth has been fairly constant, which begs the question - would Madrid have made the same revenue had they signed for example 1 galactico less? I think Ronaldo has made a huge difference, but had they not signed Kaka I don't think their revenue would have been impacted.
Of course when a firm/club is valuated before an acquisition (or a merger but that would never happen with clubs), the players will be considered as 'assets' of the firm/club. A player valuated at 50 million raises the valuation of the club 40 million more than a 10 million rated player.
What you mustn't do is confuse assets and liabilities with cash flow or revenue. In general, productive assets tend to raise the cash flow or revenue but this is not always the case. Some assets just sit there and do nothing (no I'm not talking about Kaka).
Like I've reiterated, while the galactico signings do help raise the revenue through sponsorships, match day, friendlies blah blah blah, I feel Madrid's revenue would've been the same had they signed one galactico less. Keep in mind that we have not even yet considered the wages that must be paid to each player. Kaka ideally would've earnt the club more than 10-12 million every year because those are I believe his wages
Beast
The Observer
Mate please... Ronaldo makes 25 Million a year from his ads .. he take 10 from us and reach his 34 Mil a year (before the current renewal )from his ads.. 50 % of those deals are not a walk in the park
image rights are more important to Perez financial scope than you think... it's a deal breaker , the only exception was CR who owns 40 % , the club 40 % and a third party owns 20 %
if you calculate it the clubs makes 8 Mil off Ronaldo Ads and pay him 10 (well now it's 17 ) so basically since 2009 till this year the club been paying Ronaldo a net value of 2 Million Euro and the government tax (he was on Beckham law so 25 % of his salary )
you forget that Kaka for 3 years in a row had his huge popularity even when not playing it was because of "Injury " not "washed up "
He was still the third name for Adidas brands after Becks & Messi ...unless you want to tell me that CR alone makes all this because he isn't and Kaka was the biggest name in the team after CR in that same period
We are still milking indirectly the popularity that Beckham brought us in markets that was beyond our reach.. it was the exposure
Look at the growth from 2005 till 2012 in the graph and put into perspective by saying the 74 % growth plus record 514 Million is in exchange of 3 liga trophies and 2 CL semi final
In comparison to the trophies won by the 3 nearest financial growth contenders trophy haul in the same period (United , Bayern , Barcelona ) ... And you come to the conclusion that the model works
image rights are more important to Perez financial scope than you think... it's a deal breaker , the only exception was CR who owns 40 % , the club 40 % and a third party owns 20 %
if you calculate it the clubs makes 8 Mil off Ronaldo Ads and pay him 10 (well now it's 17 ) so basically since 2009 till this year the club been paying Ronaldo a net value of 2 Million Euro and the government tax (he was on Beckham law so 25 % of his salary )
you forget that Kaka for 3 years in a row had his huge popularity even when not playing it was because of "Injury " not "washed up "
He was still the third name for Adidas brands after Becks & Messi ...unless you want to tell me that CR alone makes all this because he isn't and Kaka was the biggest name in the team after CR in that same period
We are still milking indirectly the popularity that Beckham brought us in markets that was beyond our reach.. it was the exposure
Look at the growth from 2005 till 2012 in the graph and put into perspective by saying the 74 % growth plus record 514 Million is in exchange of 3 liga trophies and 2 CL semi final
In comparison to the trophies won by the 3 nearest financial growth contenders trophy haul in the same period (United , Bayern , Barcelona ) ... And you come to the conclusion that the model works
footyfan
Calma, calma
I wasn't debating that the model works, just that it would've worked even if you didn't buy Kaka. For other clubs, success is more important than anything else.
Look at what Kaka has cost you. 60-65 million euros to buy, and 12 million euros (?) yearly wages + tax. How much money have you gotten from his image rights and shirt sales? These account for the money you directly get from Kaka. Indirectly you get money through higher match day revenue, extra money for friendlies etc. but you would've got that even if you didnt buy him. Surely not more than 12 million per year + tax, let alone enough to cover the 65 million initial outlay.
Edit: I looked at Forbes to see Ronaldo's endorsements. They say 21 million dollars per yr which at current rate is ~15 million euros per year. Now if you get 40% of that, that's ~6 million per yr for Madrid.
Anyway Ronaldo's is a separate case, he has scored a goal a game for you that's enough value than anyone could've hoped for.
Edit 2: Kaka's endorsements according to Forbes is 6 million dollars per year = 4.5 million euros per year. 50% image rights = 2.25 million euros per year which is not a lot really compared to 11 million euros (forbes) wages + tax. Just the tax on his wages (~2.75 million euros) is more than your direct income from him.
Look at what Kaka has cost you. 60-65 million euros to buy, and 12 million euros (?) yearly wages + tax. How much money have you gotten from his image rights and shirt sales? These account for the money you directly get from Kaka. Indirectly you get money through higher match day revenue, extra money for friendlies etc. but you would've got that even if you didnt buy him. Surely not more than 12 million per year + tax, let alone enough to cover the 65 million initial outlay.
Edit: I looked at Forbes to see Ronaldo's endorsements. They say 21 million dollars per yr which at current rate is ~15 million euros per year. Now if you get 40% of that, that's ~6 million per yr for Madrid.
Anyway Ronaldo's is a separate case, he has scored a goal a game for you that's enough value than anyone could've hoped for.
Edit 2: Kaka's endorsements according to Forbes is 6 million dollars per year = 4.5 million euros per year. 50% image rights = 2.25 million euros per year which is not a lot really compared to 11 million euros (forbes) wages + tax. Just the tax on his wages (~2.75 million euros) is more than your direct income from him.
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jamrock
Senior Member
beast is just talking crap, the signing of big players helps, but not in the huge way that he is making it out, a simply barca vs real comparison brings this across.
very simple
perez wins, triples real revenues by saying i will sign the best players blah blah blah does so.
laporta wins, triples barca's revenues, and while he had, dinho, he didn't put the huge emphasis on this as real
conclusion, players don't really impact on revenues as much as someone like beast and perez would have us believe.
just look at the revenues of the clubs now, real have 10m more than us, with a bunch of super stars signed.
look at man utd, revenues growing rapidly, no big global stars in sight.
the club is always bigger and more important brand.
very simple
perez wins, triples real revenues by saying i will sign the best players blah blah blah does so.
laporta wins, triples barca's revenues, and while he had, dinho, he didn't put the huge emphasis on this as real
conclusion, players don't really impact on revenues as much as someone like beast and perez would have us believe.
just look at the revenues of the clubs now, real have 10m more than us, with a bunch of super stars signed.
look at man utd, revenues growing rapidly, no big global stars in sight.
the club is always bigger and more important brand.
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