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Real Madrid defend spending spree

AFP - 3 July 2009 18:45

Real Madrid director general Jorge Valdano, seen here in 2005, has defended his side´s spending spree on new players like Kaka and Cristiano Ronaldo, saying the cash-rich club can afford it.

MADRID (AFP) - Real Madrid director general Jorge Valdano has defended his side's spending spree on new players like Kaka and Cristiano Ronaldo, saying the cash-rich club can afford it.

"Real Madrid is the richest club in the world. It generates a lot of money and this is why it recruits first rate players," he said after unveiling new defender Raul Albiol, who joined Real from Valencia for a reported fee of 15 million euros late Thursday.

Valdano made the comment when asked by reporters about the criticism by UEFA president Michel Platini over the more then 200 million euros which Real has shelled out for new talent.

Real paid 93 million euros to recruit Ronaldo, the 2008 FIFA World Footballer of the Year, from Manchester United and 65 million euros to secure Kaka, the FIFA World Footballer of the Year, from AC Milan.

In an interview published Thursday in French sports daily L'Equipe, Platini said the huge sums of money spent by clubs like Real in the transfer market was "not normal".

Last month he said UEFA was planning action to put an end to football's excesses.

"These transfers are a serious challenge to the idea of fairplay and the concept of financial balance in our competitions," he said, adding the new set of rules being developed was UEFA's "top priority today".

Real is the world's largest revenue-generating club in the world, ahead of Manchester United and Barcelona, according to an annual ranking compiled by business advisory firm Deloitte.

The club boosted revenues from t-shirts and other souvenirs after it began signing top players like France's Zinedine Zidane and England's David Beckham in 2000.

Real Madrid's capture of Brazilian star Kaka could be worth 100 million dollars a season in additional revenues to the Spanish club, according to sports business consultancy Weber Shandwick Sport.

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Comments (17)

hollyice

3 July 2009 19:32

Good that Blatter doesnt share the same idea with Platini . The best thing to think about right now is the 6+5 idea they were talking about last year.

Making a cap for transfer fees will kill the English teams anyway and 6+5 will hurt them but also will help them to devellop their own players.

We are used to see Blatter and platini in contradition about different subjects which means they can never make any rules which are good for the beautiful game .

Tontodonati

3 July 2009 22:00

As long as a club doesn't go into debt, I have no objections to what it spends. If Real Madrid can generate revenues greater than their expenses, what's wrong with that? I call it sound business practice.

darx72

3 July 2009 22:32

Teams should make own cap like Liverpool who never payed over than £30 m . Clubs will be at the same level if Fifa settles £ 30-40 m as a maximum transfer fee.

pedroSilesia

4 July 2009 00:59

ok 40mln limit. What if player is worth more than 40mln, e.g 60mln?? Swap deal?? Maybe the value of the player should be a limit??

One is certain changes in regulations are necessary, in my opinion idea of 6+5 is ideal because it'd promote European players and force clubs to sign them. Surely it would civilise tranfermarket between Europe and Africa.

phughes699

4 July 2009 06:49

There is no doubt that Real Madrid will become more high profile with the new players that they have bought. This generates a lot more money for the club. They are are in a good position because most of these so called football stars, are just mercenaries.

Whether what they are doing is right, it is hard to know. There doesn't seem to be a level playing field anymore. The ones with the money get the big names, simple as that. As long as these stars have this mentality about money, there is not a lot anyone can do.

I feel that going to teams because of their love of the beautiful game is all bullshit. Money is the single factor for all these so called superstars.

Giorgio

4 July 2009 08:47

Personally I have no objection to clubs, be it Real or any other club, spending unlimited amounts of money to buy players. This is the way it works in football, or in any other business.

And it would be a totally crazy thing to do, if FIFA or UEFA shold decide to impose a limit on transfer fees. We live in a free market economy (or is the EU a socialist dictatorship ?) and those clubs who cannot afford to spend big should maybe consider getting into another type of business.

hollyice

4 July 2009 09:13

Phughes , read something else than The Sun and Mirror.co.uk and try to find out that if money is the factor Madrid wont compete with Manchester City to sign any single player .

We experienced a bad year without winning a single trophy but still those players wanted to join us , you have to respect their choice to join Madrid , it's unfair to call them with such words .

We had players who chose to go like Makélélé , Robinho , Etoo who left the club but I think I have to respect their choice also .It was not important for them to play for a big club or better league , but when they said one time they wanted to leave if they dont play more or get better money they were shown the exit door . That's how clubs must act and that's my opinion .

Chelsea4ever

4 July 2009 10:48

IT'S NOT EASY TO BE IN MADRID FOR ETO'O MAKELELE ROBINHO OR ANY BLACK PLAYER THATS WHY THEY GO TO BARCELONA OR COME TO ENGLAND !!MAYBE MADRID IS A DREAM TEAM FOR MANY PLAYERS BUT NOT FOR BLACK PLAYERS !

alboi

4 July 2009 19:00

Giorgio,

Free market economy? Socialism? You sound like a good example of why Republicans still have a strong hold in America despite running this economy into the ground and making us weaker in every way in the face of the world. There should be a rule for scared people like you that says, before you use the word socialism, define it. I swear everything that democrats enact, Republicans label as socialist and bad. That's the only reason they give. If something's bad, it is socialist. Please learn to see through right-wing slogans before using them in a football forum! And let me ask you this. If your city team in Italy was not able to compete with the likes of Inter and Milan, should they just quit and not have a club because they don't generate as much revenue? Ask someone from Parma or Livorno or Bari what he thinks about that.

I don't have any opinion on caps. If the club can afford it, let them do it. All I know is that the biggest clubs will continue to get bigger and richer and the smallest clubs will have no chance of ever catching up. If they do produce their own stars, they will not be able to hold on to them because they will be bought by bigger teams. For better or for worse, this is today's football. When money wasn't as important into the game, players played for honor and pride with spirit and desire. Now they play to earn more.

Tontodonati

5 July 2009 01:01

Alboi, you seem to be contradicting yourself. You just stated to Giorgio:

“And let me ask you this. If your city team in Italy was not able to compete with the likes of Inter and Milan, should they just quit and not have a club because they don't generate as much revenue? Ask someone from Parma or Livorno or Bari what he thinks about that.”

Well, you ask some people from Parma, Livorno or Bari, who happen to be a businessman failing to generate enough money. Thus not able to decide whether they want to lose more money or cut down their losses and get out of the business.

Then You stated:

“ . . If the club can afford it, let them do it. All I know is that the biggest clubs will continue to get bigger and richer and the smallest clubs will have no chance of ever catching up . . . “

According to your logic, then, it’s natural that if the smaller club can’t catch up to the big ones, they should cut down their losses and start a more profitable business! Would you personally hold on a business where you keep losing money?

Giorgio

5 July 2009 08:02

Alboi,

I can understand your point of your point of view, but I stand by what I said earlier.

In a free market economy, clubs should be free to spend unlimited amounts of money, if they can afford it. Those clubs that can't afford it, should resign themselves to being relegated to a lower league, or they should consider getting into another type of business. That's how it works in business, be it football, or any other type of business.

The worst thing that could happen to European football is to have more regulation, from UEFA, the EU, or anyone else.

And not that it has anything to do with our discussion, but if I lived in the States I would vote Republican.

pedroSilesia

5 July 2009 13:15

There is something like competitive balance in sport. Look at England and teams which cannot qualify for the Champions League because of 'big four'. Look at the Europeans leagues and teams which usually take a championship. Was it interesting watching on Inter and whole Italian league this year?? Compare it with the season in Germany.

There was a research in England which showed that more and more people will swith on rugby instead football because Premier League became predictable.

hollyice

5 July 2009 13:25

I think Perez presented a good idea to UEFA about the European Super League , where all big European clubs will meet every week instead of the champions league where you can be lucky to meet easier teams and go far with the actual system .

The only problem is hooliganism , hate can grow between some clubs especially if some Turkish club has to meet English one, or Russian against Ukrainian etc .....

Tontodonati

5 July 2009 13:31

PedroSilesia, agreed. But if Rugby becomes as big as soccer, we'll have the Real Madrids, Manchesters and the AC Milans of Rugby.

Giorgio

5 July 2009 14:08

pedroSilesia,

Sometimes these research forecasts are not worth the paper they are written on.

Football is the most popular sport in the world and there is no reason why things should change, at any time in the foreseeable future.

Many people forget that football is a business. In fact, it has become very big business. That's the reason why football players are paid such huge salaries. And similarly to any other type of business there is always the real danger that some clubs may go insolvent.

At the end of the day, the amount of money that comes in has to be greater than what goes out. And at the end of the day, those clubs that have the best (i.e. prudent) management have the best chance of surviving, and of being successful, even in difficult times.

Glory, in any sport, is short-lived, because there is always new glory that beckons just around the corner. And spending huge amounts of money to buy the best-known players is not a guaranteed recipe for success.

But, in spite of the highly publicised moves in this transfer season, football will continue to be the beautiful sport. And by the end of next season we'll know if Real did the right thing, or if they were being reckless.

alboi

5 July 2009 16:59

Tonto,

....No there is no contradiction. I could take the time to explain my points all over again, but that would just be pointless. Instead, if you really want to understand what I said, I'll ask you to read it again. It doesn't matter. Giorgio understood my point anyway. Maybe you can too?

Giorgio,

I figured you would vote Republican because it is the same logic that they use and it is the same reasons they give when they don't like any form of regulation. They call everything socialism. But just look at what happened to the banking system and housing market here in the US precisely BECAUSE there was NO REGULATION. Banks allowed to give out loans without any guarantee or interest to see if the costumers would pay them back. Why? Because these regulations were removed by the Bush presidency. Oh well, I have no desire to talk about this any longer as you don't live in the US and therefore do not know the situation well. You can only adhere to ideology, not practice. If you are really interested, I could recommend you a very interesting book to read on this topic.

But bringing it all back to football (and let's not forget to do this), I think that the trends these past 2 decades or even less have shown that the gap between the rich and wealthy clubs and the poorer and smaller clubs is getting bigger and bigger. Following your view of things, we may probably have to cut down each league by at least 10 teams. Oh imagine how fun that would be! When we forget that football is a game of the people and instead start to look at it as a business, that is when we start to lose our way and the game starts to lose its meaning.

Tontodonati

5 July 2009 20:39

Alboi. Your pushing your democratic ideology to the extreme and, when applied to football, it would actually lead you to subsidize weak clubs so they can keep on losing money just to entertain the fans. In USA the democrats have not subsidized any company be it large or small. GM, Ford, Chrysler, Wall Street and a number of major financial institutions have been receiving help from both governments not in the form of subsidization but in the form of a deal which permitted the government to buy stocks of those companies with the understanding that they will have to buy them back from the government within 10 years and at the going price. I don’t know if you live in a utopian world but I, also being a democrat, understood what Giorgio was trying to say about Free Market Economy and Socialism. As far as my previous comment, I stand by it.

Primera Division table

# Team MP D P
1 11 +19 28
2 11 +21 27
3 11 +13 25
4 11 +11 24
5 11 +4 22

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