jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131So the transaction doesn’t have be justified in the sense of increasing the profitability of the club (i.e. a “financial” justification).
To be justifiable from an “economic” perspective all it has to do is increase the net welfare of the members. That could happen through winning more titles or just the enjoyment of watching Ronaldo do step overs (and dive all the time, lol). Interestingly, the objective function of Real Madrid members appears to place a heavy weighting on the style of football played given that they fired Fabio Capello after 1 season even though he won the league that year.
What I think is interesting about Real Madrid is the agency issues associated with the presidency. Before every election the people running to be president make outlandish claims about who they are going to sign and in a way it becomes a sort of bidding war between candidates (i.e. who can promise the biggest name). Whether the promises the candidates make are in the interests of club members or merely a shorted cited election bribe is an interesting issue.
]]>A good point. My personal bugbear in this department is the spurious accuracy of these price conversions in newspapers and other media. 80 million pound is more or less $200 million – instandly understandable. I’ve seen The NZ Herald and Dominion Post often provide four digits to similar numbers in the past so the report would read, for example, UKP80 million ($212.7 million).
]]>I can understand why it is being reported in terms that we have a better comprehension of, but in my view transactions like this should be reported as “£80 million (NZ$200 million at todays rate))”. It provides a better point of reference, particularly when looking at articles like this at a later time.
(Sorry, just a small hobby-horse of mine)
]]>An interesting article on the financial state of some of the big European names right now.
]]>I’m guessing here that Real Madrid’s ticket and tv revenue is already at or close to the maximum (TV receipts may even fall during a recession). So it must come down to how much value Ronaldo adds on field. Yes, there are crucial games that win trophies and and see a club through to lucrative tournaments. And Yes, Real Madrid may get some of the investment back when Ronaldo moves on. But can any single player really add NZ$200 million of value?
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