Real Madrid | The signing of Mbappé by Madrid will also be financed by the Premier and Calcio

“We have had to do in one year what has not been done in the last three.” This was the sentence that Florentino threw into the air when he returned to the presidency in 2009. With it he justified the expense (a historical figure at that time) that was made at Real Madrid in € 264M in nine players: Cristiano (96), Kaká (65), Benzema (35), Xabi Alonso (30), Albiol (15), Garay (10), Negredo (5), Arbeloa (4) and Granero (4) ). That was the starting gun for Florentino's second galactic project, which he later completed with some other great addition, like Bale (101) or James (80). His first major project started when the still president paid the clause of Figo (€ 60M). He was followed Zidane (72), Ronaldo (45) and Beckham (24). But there was a third galactic project, this one much more recent. Just two summers ago, Madrid spent 298 million on 5 players: Hazard (100), Jovic (60), Militao (50), Mendy (48) and Rodrygo (40). In it, the Belgian is the franchise player and must lead the transition, after a summer without signings due to the coronavirus crisis, towards the new era in which he will coincide with Mbappé. But how can Madrid sustain that level of spending without a state behind it, like PSG or Manchester City have? How can the white entity face three-figure signings for the future without being driven by American or Chinese investors such as United, Liverpool, Inter or Milan? To answer these questions, beyond the traditional sources of income, you have to turn your gaze to the sales that are made.

The following study shows that Premier League and Calcio are the two main sources of income that Real Madrid has had in the market since 2009, taking this reference date as it was when Florentino Pérez started his second term. and when Madrid understood that it needed to sell to be competitive. The big change in that policy came in the summer of 2013: Madrid needed to sell Higuaín to Napoli (40 million) and Özil to Arsenal (47) in order to buy Bale (101). A year later, he packed Di María destination United (75 million) to buy James (80). Today, making large outlays without letting go of ballast is a pipe dream. Financial Fair Play is insurmountable in another way.

Since 2009, Real Madrid has spent 1.34 billion euros buying players. In that same period, it has sold for 784. Of that great cake of additional income for the white entity that is now the sale of footballers (the 784 million in cash since 2009) 41.5% have been in transfers to the Premier League and 34.6% to Calcio. These two Leagues bring together 75% of the outbound operations… Spain remains at 12%, Germany, where there is an important culture of cost containment and commitment to the quarry, at 4% and Russia and Portugal only appear as residual sales markets.

It's curious, there is not much reciprocity with respect to the markets in which Madrid buys. It is mainly in the Premier, but the rest is widely distributed between France, Spain, Portugal, Germany, Italy and Brazil, in this order … They have all the data in the attached graph.

As we aim, Madrid has become a clearly selling team (or at least, as much as a buyer) since summer 2013. It surpassed the 100 million income in this concept in that summer of 2013 (109 million in Ozil, Higuaín, Albiol and Callejón), in that of 2014 (111 in Di María, Morata, Sahin and Xabi Alonso), that of 2017 (129 in Morata, Danilo, Diego Llorente and Mariano) and that of 2018 (100 in Christian). The summer period of 2019 stayed at 95 million (Kovacic Marcos Llorente and Theo) and, in that of 2020, that of the pandemic, in 85 (Achraf, Reguilón and Óscar Rodríguez). At this point the trickle of important exits is already permanent. In addition, Madrid released a burden on its wage bill by shedding (without any benefit) from James Y Bale (Between the two they charged 50 million gross of the 283 that Madrid pays, according to their latest official accounts, to the players of the first team). And he did not sign. Everything, prepared the star signing of Mbappé in the summer of 2021.

On the other hand and as in any sector of the economy, there are more expensive markets and others cheaper. And that maxim is also fulfilled in football, both for purchases and for sales. In the case of Real Madrid and given that, as its income from television rights indicates, the Premier it's the best league, It is there where the white club pays the most for transfers: an average of 53 million in the eight players it has brought in since 2009. In the same way it is where it sells more expensive (40 million on average for eight footballers). Italy keeps the same proportion, Madrid pays on average each player 45 million and sells them at 30.

By teams, in terms of sales, Chelsea (125 for Morata and Kovacic) and Juve (100 for Cristiano and 20 for Morata) are the ones that have left the most cash since 2009, while Tottenham (136 in Bale and Modric) and Olympique de Lyon (105 in Mendy, Mariano and Benzema) is where Real Madrid has spent the most. In the national market, it is clearly Sevilla (30 million in Óscar Rodríguez and Negredo) and Atlético (also 30 in Marcos Llorente) who have left the most money in Madrid's coffers in the last decade. Valencia, another great of Spain, only 8 in Channels. In LaLiga, the player gets an average of 13.6 million and sells it at an average of 14.

To better understand the current situation of the clubs in the market we resort to Esteve Calzada, main owner partner of Prime Sport, one of the pioneering companies in the representation of players, sports marketing and financial services advice and consulting, whose annual report is a reference in the sector.

-How has the crisis affected the market?

-An atrocity. In Spain it has dropped to levels of investment in players from ten years ago. All the leagues, even the English one, although this less, have been affected. They have had to find other ways such as creativity, exchange …

-Is there a direct relationship between the loss of competitive level of Madrid and Barça and their financial statements?

-Of course. If you ask Madrid if they had wanted to sign Mbappé, Upamecano, Haaland or Camavinga this year, the answer is clear. There are clear limitations. More than that, you are thinking about how to solve that the sponsors call you to request a reduction in their contracts because they have difficulties. Either way, the situation in Madrid and Barça is diametrically different. At Barça, the problem that I anticipate is that the squad does not have much background. Instead, Madrid renewed it with young players who have a lot of potential and are wide. Barça continues to have this investment pending that you must make every X years.

-Madrid did it the previous summer, 298 million in Hazard, Mendy, Militao, Jovic and Rodrygo …

-And he won the League last year.

-How else are Madrid and Barça affected in these difficult times?

-For me, they are clearly selling clubs. Actually, they always have been, in the case of Madrid with Robinho, Robben or Morata. But now even more so. And Madrid is also a better seller than Barça. Florentino's pulse hasn't shaken when it comes to selling players.

-What was the turning point?

-Clearly, when the Financial Fair Play standard came into force. That was what automatically turned all clubs into sellers, not just Porto, Benfica, Monaco or Seville. They were joined by Chelsea, Barça, United and Madrid. And there have been many signings pending completion of exits. Now, player sales are part of the regular income clubs use to budget. Before, it was an add-on. If you don't sell, you don't balance the accounts.

-Madrid is financed, in this sense, in the Premier and Calcio …

-It suits me perfectly. The Premier is clearly above, its television income is three times more than in Spain, although here we have improved both in the total money received and in the distribution, which is more equitable. Before, only Barça, Madrid, Atlético or Valencia could make big signings, and now the range is widening. A Granada can pay 10-15 million for a player.

-The Premier, for example, is a more even league.

-And so much. Here it would be unthinkable for a Leicester to win a championship. But that's why here history has also been equaled now, the 100-point leagues are over, Madrid and Barça leave many on the way. Eibar has a budget of 50 million …

-Is calcium reborn?

-There is a rebound. New investors have entered the big clubs. The way of playing has even changed there. More goals are scored than ever. This year, after the Premier, it is in Calcio where the most has been invested. Serie A has already established itself as the second league that moves the most money.

-And Germany?

-There is different, because sports policy prevails and the commitment to the quarry, for young talent. The best example is Dortmund. That does not stop taking 17-year-old kids. Out of ten, nine can go wrong, but the good one is a Sancho or a Dembelé. Madrid, now, is also a little in that.

-It's the future?

-I think that what Madrid was looking for was to be able to identify the next Neymar. That is why they brought Vinicius, Rodrygo or Reinier and tried Gabriel Jesús. And they have set a trend by bringing in expensive young people. Before, the 'greats' waited for these players to stand out, for a Monchi to sign them first. “I'll buy them a little more expensive, but I'm not risking it.” And now the fact is that they do take risks.

-Will we see three-figure signings again soon?

-I think so, but in special circumstances and for space players. A Sancho to United, a Mbappé to Madrid … I still see that as feasible. There are still great teams that are not so financially impacted.

-As a specialist in the market … What price will Mbappé be around next summer entering the last year of his contract?

-Well, if Hazard in those conditions came out for 100 plus bonus, Mbappé should be around 150.

An overview of the market movements made by the teams competing in the Champions League this season leaves no room for doubt. Real Madrid is preparing a great move for next summer. Even Barcelona, ​​which is technically bankrupt if it does not cut its players' salaries by 30% imminently, has been able to sign after selling. The white club eHe is the only great team in Europe that has held back, thinking of Mbappé for 2021 and Haaland for 2022, and without losing the perspective of Camavinga. The 247 million that Chelsea have spent and the 163 million of the City, both pressured (and sanctioned) by the UEFA Financial Fair Play in recent years, are an exception in this summer of market marked by the pandemic.

MARKET FOR TEAMS PARTICIPATING IN THE CHAMPIONS

		Team	sales	Balance purchases
	1	Chelsea	55	247.2	-192.2
	2	Man. City	61.65	163.3	101.65
	3	Barcelona	126.5	124	2.5
	4	Juventus	96.5	110.2	-13.7
	5	Inter	85.1	97	-12.9
	6	Man. United	fifteen	83.5	68.5
	7	Liverpool	43.2	79.7	-36.5
	8	Rennes	49.8	71	-21.12
	9	Athletic	72.8	65.5	7.3
	10	Seville	9.5	64.5	-55
	eleven	Bayern	22	62	-40
	12	PSG	5	61	-56
	13	Atalanta	65.5	49.1	16.4
	14	B. Dortmund	5.5	48	-42.5
	fifteen	Ajax	101	40	61
	16	Leipzig	56.5	33	23.5
	17	Zenith	5.28	32.7	-27.42
	18	Lazio	4.2	29.5	-25.3
	19	Lokomotiv	14.5	15.3	-0.8
	twenty	Marseilles	8	13	-5
	twenty-one	Port	75.65	11.5	64.15
	22	Salzburg	9	10.6	-1.6
	2. 3	Fenerbahce	22	8.92	13.09
	24	Olympiacos	20.3	7.8	12.5
	25	Krasnodar	0.7	6.8	-6.1
	26	Basaksehir	0	6.5	-6.5
	27	B. M’Gladbach	0	4.5	-4.5
	28	Ferencvaros	0.7	4.1	-3.4
	29	Midtjylland	0.45	4	-3.55
	30	Real Madrid	98.5	0	98.5
	31	Shakhtar	1	0	1
	32	Witches	0	0	0
		Total	1,130.83	1,554.22	-423.39

There is a very revealing piece of information provided by the sports finance and marketing representation and advisory company, Prime Sport. Spending on transfers fell 50% compared to the previous summer in the five main leagues on the continent, from 6,465 million to 3,305. And even more revealing is that it has been The league the one that has fallen the most, up to 72% decline.

To understand how important it is for Real Madrid to go out onto the market to place players, it is necessary to put what it sold this summer into perspective with respect to what it plans to enter in other concepts. Achraf, Reguilón and Óscar left 85 million euros in cash (these are extraordinary income). The white entity had budgeted total ordinary income (beyond the sale of players) for this season of 822 million euros. They are broken down into four major items: 161 million for membership and subscriber fees and ticket sales, 109 for friendlies and international competitions, 180 million for television rights and 371 million for marketing. All those games are seriously threatened. Soon, with the publication of the accounts to be voted in the Assembly, we will know how much. But if the decrease in these ordinary income were 20%, 165 million euros would cease to be entered. Those revenues would therefore remain in 650 million. Y player sales would add 13% to that amount in a dull year of exits … They are therefore constituted in una leg over the bank on which Madrid is based. A kind of artificial ordinary income.

It only remains to know if the crisis will allow Madrid to undertake the Mbappé operation and how it will fit into the ranking of the most notorious in world football. Hazard, a top-5, came for 100 million plus 40 in variables when he had only one year left on his contract to fulfill at Chelsea. Everything is in the hands of the will of the Qatari royal family, since PSG is owned by an investment fund from that country. That you agree to a price that is in the market or prefer to bet on a symbolic figure, which could only be to exceed the 222 million that they themselves paid for Neymar. Madrid, historically, is used to making signings that are among the most expensive in history. He held the record at the time with the 94 of Cristiano, later with the Bale's 101 and it's still in the top-ten 100 (plus 40 in variables) that he paid Chelsea for Hazard. You can check it in the following photo gallery.

It also remains to be seen who will be the next players with whom Madrid will have the chance to make money. The market will not be there either next summer for many joys yes, as it seems, this season is also played without an audience in the stadiums. That, in the best of cases, if there is no unforeseen suspension of the competition (this last case, very unlikely).

Madrid's squad, champion of four Champions in a closed period of five years, has already been decapitalized. There are players like Modric, Ramos, Benzema, Bale, Marcelo or Modric, that clearly pass 30 years, impossible to make profitable. And others like Hazard who will soon enter that strip. But the squad, on the other hand, is broad and young. There are names like Ceballos (32 million market valuation according to the specialized website Transfermarkt), Brahim (14), Odegaard (45), Isco (30) or Asensio himself (40), that he could feel no place in the trident with the arrival of Mbappé and Haaland, with whom to continue making money. Be that as it may, in the X-ray of the situation, sales will be as important as purchases in the Madrid of the future … The present is already being written in that direction.