2 Aug 2018

WELLBET NEWS: Juventus buys "economics" behind Cristiano Ronaldo


WELLBET EN News: If you go to other information, "a 33-year-old veteran's transfer fee can reach 117 million euros " 

will be considered a fantasy. The two retired ages of Zidane and Ronaldo are both 34 years old, while the other Golden Globe winner Ronaldinho’s retired age is 37 years old, but he is basically in the first three years of retiring. status.
It can be said that if you change to someone else, even if he used to be Mr. Golden Ball, even if the price of the transfer market is now high, the 33-year-old "old age " transfer fee can reach 117 million euros. Unimaginable. After all, it's hard to imagine how long a veteran can stay in the peak state, how high the attendance rate, you don't know if a sudden injury will let him retire early.
After the completion of this most critical information, all the voices of doubt seem to have stagnated, disappeared, and transformed into a beautiful word in the moment - this man not only led Real Madrid to win the Champions League for three consecutive years, but also just in the World Cup. He scored four goals. His body is only 23 years old. He can adjust his playing style according to his environment. He can always help the team win the championship. Juventus's signing decision is too It’s worth it!
Of course, whether it is "the Arabian Nights" or "so cost-effective", these intuitive judgments may have a certain deviation. Here, the author will analyze the economic effects related to C Ronaldo according to some specific figures, and explore the "economics" behind Juventus' purchase of Cristiano Ronaldo.

The introduction of Ronaldo is not a big burden every year, but it can be tolerated by Juventus.
There is no doubt that Ronaldo's arrival can increase Juventus' chances of winning on the court. In today's commercial football environment, this means that Juventus can create higher incomes through the media, sponsors and fans. This means that the real question behind C Ronaldo is whether Juventus can create a better return on investment.
First look at the cost of Juventus each year, C Ronaldo's annual salary after the tax is 30 million euros, his salary alone accounted for 21% (226 million euros) of Juventus' 2018-2019 salary budget. Apportioned to each year, Juventus pays C Ronaldo approximately €56 million in taxes each year before taxation, and his transfer fee of €117 million is apportioned to approximately €29.25 million per year.
According to statistics, in the past ten years (2009-2018), the club invested an average of 22% of the club's operating income for a player who recorded a transfer record. As shown in the chart below, compared to last year's Neymar, C Ronaldo's transfer fee ratio (28%) is closer to the average, and the financial pressure on the club is not as big as imagined.
Let's take a look at UEFA's very strict fiscal fairness policy, in which the principle of balance of payments rules that the club's maximum financial loss in three fiscal years cannot exceed 30 million euros. Cristiano Ronaldo’s transfer fee is a big burden for Juventus,
However, another new rule of fiscal fairness policy is to buy and sell players' price difference rules, that is, the club's net loss (input) for a single season of trading can not exceed 100 million euros. Cristiano Ronaldo’s total purchase price is just 117 million euros, which is why Juventus may “turn hands” for Higuain at a rental price of more than 18 million euros

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