I have never been the world's biggest soccer (football for my European readers) fan. I have attended a Columbus Crew game, that is an American Major League Soccer (MLS) team, in the past. I watch soccer sometimes when it is on ESPN, it is often the Champions League finals, and I will root for the USA during the World Cup. However, that is where my soccer fandom ends -- as far as I am concerned, "football" is the game played with the oblong, pigskin ball featuring two heavily armored teams battling on the gridiron for the ultimate supremacy in either the NFL or NCAA.
Well, instead of trading players in soccer, they transfer them for large sums of cash. This year's transfer period has seen Real Madrid step up to lay out large sums of cash for two players -- a Brazilian called Kaka and a Portuguese player known as Cristiano Ronaldo. The Spanish team has spent large sums of money for the rights to sign these two players (apparently this transfer payment does not include signing the player, it is simply a sum of money paid to the player's former team). Real Madrid paid out $131 million to Manchester United for the rights to sign Ronaldo and $92 million to AC Milan to sign Kaka. Ladies and gentlemen, that is $223 million for the rights to sign two players ... and some experts believe that the team may not be finished spending.
I was surprised to find out that the $223 million matches Real Madrid's domestic television deal. The soccer club is a public trust with "access to favorable lines of credit to a degree unmatched by other clubs." Furthermore, foreign players pay 23% to 25% in tax (rather than 40%) for the first five years in the country and a commercial/sponsorship department "among the very best in the world" and you have the formula for a soccer team that likes to spend money.
It turns out that the team is not just indiscriminately spending a ton of money. The Champions League final is set for Madrid next year. This gives the team a chance to win the final on its home pitch, which could lead to quite a windfall in the economic department. We shall see if this is the case; the soccer season is a long, arduous one, and there is plenty of opportunity for injury and upsets. It sure seems that Real Madrid is trying to borrow a page from the Yankees' playbook, purchasing a championship. Of course, how has that worked for the Yanks of late?
That said, the comparison to the Yankees is valid, as Real Madrid has been called the "biggest brand in the game, maybe in all of sports." The team knows how to use this to its advantage, and may actually be able to turn it into a championship. That is, as long as Brian Cashman doesn't get a hold of the team.










