FOOTBALL FINANCE: TRANSFER MARKET UPDATE - REAL MADRID, FC BARCELONA, DAVID VILLA, RIBERY, XABI ALONSO...
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FOOTBALL FINANCE: TRANSFER MARKET UPDATE - REAL MADRID, FC BARCELONA, DAVID VILLA, RIBERY, XABI ALONSO...

chess

Thursday, July 09, 2009

REAL MADRID is suffering from its initial success in the transfer
market, dragging along everyone else in this globalized planet.

At every door Real Madrid goes knocking to ask for a price the
only answers they receive are inflated figures that lead them
running away. There is an entrenched idea that the Spanish Club
has clear publicized necessities & that to achieve them they are
willing to pay whatever it takes to get them. This isn’t exactly
the case, as there are logical limits to everything & now an
"urgent" need to “cool” the market exists for the good of Real
Madrid & everyone else.

euros

All the above should not surprise anyone after paying 94M€ for
Cristiano Ronaldo, 65M€ for Kaká & 35M€ for Benzema creating
"new" market references that have logically lifted the price of all
other assets, this is pure financial theory. Add to this that Real
Madrid (the demander) announces beforehand that they wish to
spend around 300M€ before the end of 31st of August & you send
a clear signal to everyone ( the market ) that you have the money
to spent. This leads to inflation.

Ronaldo

 

With this background & the market characteristics Real Madrid finds
that their signing desires are finding serious obstacles. Take the
following examples of players,who cannot be compared with Ronaldo

or Kaká because none - as yet - have won the Golden Ball & FIFA
World Player:
David Villa – Valencia CF halt the operation with Real Madrid after
an initial agreement because – apart from other factors already
discussed in past posts – the offer is considered less than “market
price”. Said another way, the denominator is that they wished
more.

David_Villa
Xabi Alonso – Last year Liverpool FC priced their player around
20M€. Now when Real asks the price has risen to 48M€.

Cesc Fabregas – According to Spanish Football TV programme
“PuntoPelota” last night, Real Madrid asks Arsenal about Cesc
Fabregas & the answer is an astronomical 60M€

Franck Ribery – Bayern Munich puts a price of 80M€. More than
Kaká who has France Football Golden Ball & FIFA World Player!

Santiago Cazorla – Real Madrid has the Spanish International in
mind in case the Franck Ribery option fails. The Madrid Club has
asked Villareal & the answer is 46M€, for a player that last year
nearly went to Real Madrid for 18M€.

CRAZY!
With these prices out of all rationality – eg Cazorla 46M€ - Real
Madrid has decided to HALT its activity & wait to see if the
market returns to an "equilibrium" by lowering its demand &
allowing supply to set the price.

Meanwhile, other Clubs who have waited patiently in the wings
will now begin to fill the vacuum that Real Madrid will create &
attempt to lure players otherwise not accesible to them in the
past. Chelsea FC is believed to be preparing a massive 81M€ offer
for Franck Ribery according to English media, along with FC
Barcelona who are said to be preparing an assault as well.
FC Barcelona is insistent & persistent with David Villa & only need
to shut a price with Valencia FC which is around 40M€ + a loaned
player. Other Clubs will also begin to move shortly like AC Milan,
Manchester United, etc as the money given to one Club for a
player circulates to buy another & so on.
FranckRibery
With this background, Real Madrid has one advantage over most
Clubs; the latter have stricter budgetary restrictions & thus limit more
their choices. Clubs like FC Barcelona may have Villa, Ribery, Felipe
Luis & Diego Forlan all as objectives but can only buy one or two.
If Chelsea FC does buy Ribery for 81M€ this will limit more buying
from them later…thus so on & so on for others, except perhaps for
Manchester United who have cash & can afford to sit back &
wait to see how things turn out before pouncing with a massive
cash pouch in the last moment if needed. Thats the advantage of
having cash when others are limited.

Conclusion, an interesting 6-7 weeks ahead in the transfer market
with things building up for the end like the Opera. Everyone
will now commence the wait, continue negotiating, moving,
pressuring & when a Club can’t no longer take the heat & buckles,
the market will explode again into a freezy of buying to settle for
the new upcoming season. Where will Villa, Alonso, Cazorla, Felipe
Luis, Maxi Rodriguez, Huntelaar, Ribery, Cesc Fabregas, Forlan,
Sergio Agüero, Ibrahimovic, Maicon, Luis Fabiano, Pirlo, Van der
Vaart, Drenthe, Van Nistlerooy ...etc & etc all end
up? Who knows, everything will continue to be speculation, we
will have to wait & see how the chips get moved around. But one
thing will be assured there will be surprises & that is for sure.{jcomments on}

 

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