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Dave Beans

Real Madrid Fund Roughly £280m

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Here's a fairly interesting article...

http://www.theherald.co.uk/sport/headlines...e_continues.php

Perez reckons that he'll recuperate the Kaka & Ronaldo money within three years (probably due to the Far East & Latin American markets)...

Rubbish.

This is Perez spending money to boost his ego and keep the club presidency, whilst setting up Real Madrid for their next financial crisis. Maybe they can move their training ground even further out. The club are a financial basket case.

Here is their last big fire sale event from 2001:

REAL MADRID MEMBERS APPROVE DEAL TO SOLVE DEBT CRISIS

In an extraordinary general meeting held on Sunday, 92 percent of those who voted supported the deal between the club, which won the Spanish league title on Saturday, the Madrid city council and the regional government. Club president Florentino Perez said the deal, which is expected to generate around $310 million, had assured the economic future of the club. "Today is an historic day for Real Madrid because the plan has been approved by a vast majority and it will banish forever the cursed debt that has been hanging over the club. "Decisions like this will allow the club to establish itself as the best club in the world in the 21st century," he added. Perez made the scheme to sell the training ground a key part of his election manifesto when he was campaigning for the presidency last July. He also expressed repeated concern about the scale of Real's debt and made it clear on Sunday that urgent action was needed if the club was to continue to function normally. "The monstrous debt has left the club in a state of economic intensive care," Perez told the members as he urged them to support the deal. According to the terms of the agreement, Real Madrid will retain the rights to a section of land which it will sell for office construction. The club will then be able to clear its debt and still have enough cash left over to build a completely new training facility on cheaper land on the edge of the city, close to the main airport. The new training ground, which will also include a Real Madrid theme park and accommodation for young players, is expected to be completed for the start of the 2004 season. The agreement will also mean that the city council will be able to use the present Real training ground in order to build a state-of-the-art sports stadium which will act as the centre-piece of the city's proposed bid for the 2012 Olympics. As well as securing approval for the plan to sell the training ground Perez has also finalised a series of marketing and image deals that have secured the short-term financial future of the club.

http://www.sportbusiness.com/news/135258/r...lve-debt-crisis

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Rubbish.

This is Perez spending money to boost his ego and keep the club presidency, whilst setting up Real Madrid for their next financial crisis. Maybe they can move their training ground even further out. The club are a financial basket case.

Here is their last big fire sale event from 2001:

REAL MADRID MEMBERS APPROVE DEAL TO SOLVE DEBT CRISIS

In an extraordinary general meeting held on Sunday, 92 percent of those who voted supported the deal between the club, which won the Spanish league title on Saturday, the Madrid city council and the regional government. Club president Florentino Perez said the deal, which is expected to generate around $310 million, had assured the economic future of the club. "Today is an historic day for Real Madrid because the plan has been approved by a vast majority and it will banish forever the cursed debt that has been hanging over the club. "Decisions like this will allow the club to establish itself as the best club in the world in the 21st century," he added. Perez made the scheme to sell the training ground a key part of his election manifesto when he was campaigning for the presidency last July. He also expressed repeated concern about the scale of Real's debt and made it clear on Sunday that urgent action was needed if the club was to continue to function normally. "The monstrous debt has left the club in a state of economic intensive care," Perez told the members as he urged them to support the deal. According to the terms of the agreement, Real Madrid will retain the rights to a section of land which it will sell for office construction. The club will then be able to clear its debt and still have enough cash left over to build a completely new training facility on cheaper land on the edge of the city, close to the main airport. The new training ground, which will also include a Real Madrid theme park and accommodation for young players, is expected to be completed for the start of the 2004 season. The agreement will also mean that the city council will be able to use the present Real training ground in order to build a state-of-the-art sports stadium which will act as the centre-piece of the city's proposed bid for the 2012 Olympics. As well as securing approval for the plan to sell the training ground Perez has also finalised a series of marketing and image deals that have secured the short-term financial future of the club.

http://www.sportbusiness.com/news/135258/r...lve-debt-crisis

For some reason people in the English speaking world have been very badly informed about the ex Real Madrid training ground business. The site (formally known as Ciudad Deportiva) was designated as a business park, and you can see the results today:

4 Towers Business Park Madrid

For anyone who still doubts the training ground was worth what Real Madrid sold it for, it's worth noting that just one of the towers was sold for 815 Million Euros in 2007.

As for financing the current signings, here's link that explains how they do it. Although merchandising can explain some of it, it's the control of their tv rights that makes Real Madrid the biggest earning club in the world! Some basket case!! LOL.

How can Real afford Ronaldo?

Growing match-day revenues, increasingly shrewd and global marketing, healthy commercial income, and a ground-breaking domestic TV deal, have all catapulted the club to the peak of the Deloitte's Football Money League this year.

They have topped it for the past four straight years, despite being overshadowed in the Champions League by their bitter rivals Barcelona.

'Remarkable growth'

According to those most recent figures, for 2007/08, the club saw its revenue hit £290m during that season.

Of course whether this expenditure will result in success on the field is another matter. I suspect Barcelona (who are also a club who can afford the best players - Messi, Hleb, Henry, Etoo etc) will still be the best team come the end of the season. How do you motivate a player who knows his place (and his 200,000 weekly income) is safe?

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Of course the move may yet not take place. Apparently Ronaldo has a hernia problem - it'll be interesting if he fails the medical!!!

One of the UK newspapers has stated this morning "Madrid are confident that Ronaldo could earn them over £500m in merchandising over the next 10 years." However, this is the Sun, so make of this story what you will. :huh:

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It's possible that Cr7 will soon not be the highest paid footballer in the world. Apparently Man City have offered Etoo £250k a week to play for them.

Bbc report Etoo

According to the report Etoo may stay at Barcelona as they are offering him a new contract.

Money no object for some clubs, hey? :o

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