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Why Real Madrid had to sell Ronaldo

Without the €200m sale of Cristiano Ronaldo to Juventus, which also wiped out his €42m annual wages, Madrid would be posting a €87m loss rather than a €43m profit. His replacement Dominican Republic striker Mariano cost €20m this year, spread over five years, making his book cost this year just €4m. He earns €34 million annually less than Ronaldo, altogether lifting €130m off the costs.

The club are in the midst of financing a new stadium extension that will not put an extra standard seat in the Bernabeu, which is a bit odd, given that membership, at about 92,500, has been closed for years. The new Bernabeu with a shopping centre is President Florentino Perez's long-term plan to increase revenues, but it is well behind schedule. But such projects invariably are, as we have seen at Tottenham Hotspur and less dramatically at Brentford.

Since it was first announced in 2011, the naming rights backer, Abu Dhabi energy company IPIC, has pulled out. The total cost of the stadium will be at least €575m and, because the president cannot borrow more than 20 per cent of revenue without permission, the club assembly voted to approve him sourcing a loan for that amount. The annual membership fee, paid by everyone, is about €150.

Perez is in his second term as president, but there has been unease about a 10 per cent rise in season tickets. However, they and membership fees account for just six per cent of club revenue.

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Comments

  1. Unknown30 September 2018 at 05:56

    Well, None of the Real Madrid players will attract public worldwide and sell T-shirts as Cristiaano did. Perez just did not appreciate Cristiano, THAT IS THE TRUE STORY AND THE END OF THE HUNT!!!

    ReplyDelete

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