Spend it like Beckham

11 June 2009 By George Hay Follow @gfhay

Real Madrid is spending 44% of 2008 revenue to buy soccer’s top stars. The capital outlay will depreciate fast and cost millions to maintain. But President Florentino Pérez may be content if the investments help Real sustain its pace of revenue growth.

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Manchester United announced on June 11 it had accepted an £80m bid from Real Madrid for Cristiano Ronaldo, making the transfer of the world footballer of the year the most expensive in the history of the game.

Real Madrid also completed the signing of Brazilian footballer Kaká from AC Milan for a £56m fee on June 9.

Real Madrid topped the Deloitte Money League of world football clubs for the fourth consecutive year in February, with a 4% increase in revenues to E365.8m in the 2007/2008 season. Match day revenues made up 28% of this figure, although they fell 6% year on year. Broadcasting rights from Mediapro, the Spanish communications group, brought in 37%. Commercial revenues from shirtselling and sponsorship contributed 35%.

Madrid's shirt sponsorship with online betting company Bwin expires at the end of next season. Manchester United, which was second in the Deloitte list with E315m in revenues, secured a fouryear shirt sponsorship deal on June 3 reported to be £20mperseason with Aon Corp.

Real Madrid finished second in the Spanish football La Liga this season, and reached the last 16 of the Uefa Champions League.

Florentino Pérez returned as Real Madrid president on June 1 after previously resigning in February 2006 following a sixyear spell in the role.

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