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Bobby McMahon

Bobby McMahon

You can see me on Soccer Central most Mondays and Thursdays on Rogers Sportsnet in Canada. I write a regular column for Forbes.com and Soccerly.com and frequently guest on various podcasts and radio shows.


TANGENTS

How Real Madrid And Spurs Spent Nearly $400M On New Players But Will Boost Their Bottom Lines Nonetheless

Written by on September 2, 2013 | 8 Comments »
Posted in Real Madrid, Tottenham Hotspur

Another frenzied end to a transfer window in Europe and the discussion will now move quickly from discussing and debating who strengthened their squads and who lost out, to the vast amount of money that has just been spent.

Two of the biggest spenders were Real Madrid and Tottenham Hotspur but rather than pushing the clubs into the red both clubs will likely generate… to read more please click on the link.


8 responses to “How Real Madrid And Spurs Spent Nearly $400M On New Players But Will Boost Their Bottom Lines Nonetheless”

  1. Smiley says:

    Bobby – Understanding that each pro player always “looks out for number one”, who do you think will be a more productive “mentor”/big brother, Messi to Neymar or Ronaldo to Bale?

    re: nursery rhymes
    Quite amusing to see middle aged men compose daft nursery rhymes… perhaps an online “Bestie Paul” can help compose a more witty ditty?

  2. I have no idea why this would matter.

  3. SMILEY says:

    You don’t find it fascinating to see two young players with very similar physical/technical attributes of Messi & Ronaldo join Barca and Real… with the potential of replacing the two star men as the best in the world (in 3-5 years)?

    Who will be the more gracious host, Messi or Ronaldo?

    Play nice.

  4. John Bladen says:

    I get why clubs do this (amortz transfer fees paid over the contract term) Bobby, but it is something of a stretch to assume a club that sells out every game regardless of ticket price and reaches the QFs (if not semis) of CL on a regular basis can actually see a “windfall” beyond jersey sales in the first year or two from such a signing.

    As I recall, recent CL payouts have shown that reaching the round of 16 nets a big club from a big pool around $30m, while the winner sees only perhaps another $18-20m on top of that (and there’s only one of those, obviously). It’s not chump change… but unless the purchase of Bale will guarantee RM a place in the final each of the next six years…

    IIRC, you have a background in finance and administration. Does this sort of transaction pass GAAP muster (amortization of capital assets)? I realize much of Football is outside of anything remotely like GAAP…

    If they don’t see a (revenue or competitiveness) bump from Bale in 3 years, let’s say, do you believe they might sell him on just to recapture the fee for balance sheet purposes?

  5. It isn’t just about shirt sales. The complete ethos of Real Madrid is the perception of the biggest, best most exciting and most expensive. No matter how much the model is picked away at the bottom line is that is has worked in the past and there is no reason to believe it will not continue to do so.
    It is smoke and mirrors for the masses but it does work.

  6. Ed Gomes says:

    I agree Bobby. World best players still want to go and play at Real. They know the club will always try to WIN the Champions League and not just compete. They know they will bring in the assets to get it done.
    Am I wrong in staying that its still somewhat of an honor to be wanted by Real?

    The only thing about Bale would be that they would be getting so much more out of him, if he played for England. I read in an article last year, that Real will lose around 20 million if Cristiano/Portugal don’t qualify for the World Cup. Not sure how that figure came about.

    I think that Spurs could have really improved their squad. Yes they are young pieces that will need to gel, but the quality or at least potential is there. I do believe that they lost out on Willian, who I feel will be a monster.

    On a side note Man United bungled through the transfer window. They just came out looking apprehensive and in the end foolish. Over paid for Fellani and was unable to add needed help and dump unwanted surplus. Not a good start for Moyes.
    The only reason Man United’s failures didn’t get ripped as they were happening was due to Arsenal’s incompetence. Ozil is a wonderful signing, but they needed more, no?

    As for Messi and Cristiano as mentors, no difference. They’ll both. Work with great talents because it will help them.

  7. Astronomer says:

    One thing that we should keep in mind is that by selling Gonzalo Higuain to Napoli for a reported $30m pounds (the exact amount is unclear) and Mesut Ozil to Arsenal for $42m pounds, they have already recouped well over half the money that they are spending on Gareth Bale.

    Of course, in this context, I am deliberately ignoring the fees that they paid for Isco and Illaramendi (spelling?).

    So, taking into consideration the money that is coming in from the Higuain and Ozil deals, Real Madrid are not really busting their budget to sign Bale.

    P.S. I still think they should have kept the German and sold Di Maria instead — but, anyway, that is a topic for another discussion thread.
    __________________________________________________

  8. Ed Gomes says:

    Astro, the Spanish press has been stating that it was Cristiano that wanted DiMaria. I know he crosses the ball in and provides spoed out wide, but with Bale coming in, I expected DiMaria to leave. Keep in mind that DiMaria is all left footed, and would have brought less than Ozil.
    I’m most surprised that Real didn’t bring in a striker. I wouldn’t be surprised to see Bale sitting up top just below Benzema, with DiMaria and Cristiano sitting wide. I could see a lot of the now popular, false nine formation.

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