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Cristiano Ronaldo - Transfer Price to Real Madrid

Updated on January 1, 2021

Cristiano Ronaldo - Transfer to Real Madrid

Cristiano Ronaldo was released by Manchester United to Real Madrid for 80 million pounds (94 million euros, $ 131 million) and it opened the door to the largest ever transfer of a football player in the world. The Manchester United received 94 million Euros, at once, free of commissions and conditions. In December of 2008 Real Madrid signed an agreement with Banco Santander to finance this transfer.

That agreement between Santander and Real Madrid was signed when the pound was the price of an 1 euro equal to 0.935 pounds, which means that the 8.5 million Euros relating to the exchange rate are supported by the bank.

Real Madrid payed also a commission of 6 million Euros to the player's manager Jorge Mendes, over 2.4 million Euros to Sporting Clube of Portugal for compensation of training the player under the FIFA regulations for the Rights of Training. In fact Real Madrid will spend a total of 93.9 million euros, but added the exchange rate supported by Banco Santander. Also it can be added the values of 54 million euros for the salary of the player in the next 6 seasons, so the total investment reached a total of 156.4 million euros.

Cristiano Ronaldo will be in the top of the best paid players in the world as Ibrahimovic and Kaka, with a salary 750 thousand Euros per month, or 9 million euros per year. Both Kaka and Cristiano Ronaldo will benefit from the tax incentive that the Spanish government gives foreign workers during the first 6 years of residence and work in Spain.

It will be very difficult to evaluate the financial return that Real Madrid could get with this transfer, but the previous transfers of other players as Beckham (37.5 million Euros) and Zidane (73.5 million euros), had a higher return to investment, through merchandising, new contracts and selling of rights. It is estimated that Real Madrid will get in the next 6 months a big return of 119 million euros due to new contracts. It is expected that this acquisition of Cristiano Ronaldo to the club will generate a much higher financial return on investment.

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