Interesting article on our La Liga site last week about whether Real Madrid overpaid for Kaka and Ronaldo.
The post referenced a recent report by Frontier Economics this week. Frontier works in valuation exercises and in the sports/creative industries and recently did issued a report on what determines a footballer’s transfer fee and whether the recent transfers are worth the money being paid.
According to Frontier that the record breaking €94 million (£80million) deal for Cristiano Ronaldo from Manchester United was at there high end of his valuation of €90million (£77million). That is about €4million (£3 million) less than what Real Madrid paid Manchester United.
Interestingly, Frontier values Kaka at only €44 million, which is a massive €23 million more less than Real paid AC Milan for him.
The analysis can also be used to speculate on the current transfer value of other players if they moved to or within the Spanish League. The most expensive player would be Lionel Messi at €124million (£106 million) who is the best player in the world at the moment. Steven Gerrard is the most expensive player in the England team with a value of €51million (£43million).
What do you think of the analysis?
{ 3 comments… read them below or add one }
Valuation attempts to quantify qualitative information and will therefore vary based on speculation performing the exercise. Kaka and Ronaldo both went at market rates (where supply meets demand) and theoretically, all the parties came away with what they wanted (Real, Man U and AC). I think Frontier is a load of crap if it values Kaka so low. The only downside about Kaka vs. Ronaldo is that he’s 27 and Ronaldo is 24 so Ronaldo will probably play a couple of years after Kaka retires. However, skillwise, both players are extremely fantastic and Kaka possesses the most lethal shot in the game and is a creative genius whereas Ronaldo can dribble and strike free kick like none other. Should be a great tandem to watch. C Ronaldo and Messi are currently the best players but it doesn’t really matter how anyone values Messi because he’s not leaving Barcelona.
Good points Altaaz. I wish that Frontier had explained the theory behind there numbers. That being said, Ronaldo is younger and much more of a commercial celebrity than Kaka is, and I wonder how that plays into the equation. ie with Ronaldo they can sell twice as many shirts, and get twice as much commercial money as they could for Kaka.
David, I agree that Ronaldo will probably end up being worth more commercial-wise but I don’t think Real will sell close to twice as many ‘Ronaldo’ jerseys as ‘Kaka’ jerseys. Most fans either love or hate C R (love him for the obvious reasons or hate him because of his attitude and because they think he dives, whines etc.) but it’s hard for anyone to hate Kaka (he’s humble, has a great attitude, possesses exceptional skills etc) .. regardless, I like both players and I’ll be getting both jerseys as soon as they decide what numbers they want to wear ! – the natural choices would be CR 7 and Kaka 10 but Raul and Sneijder respectively have those numbers right now so I wonder what’s going to happen . )