Did Real Madrid Overpay for Kaka and Cristiano Ronaldo?

Senior Writer Written on June 22, 2009

PRETORIA, SOUTH AFRICA - JUNE 21: Kaka of Brazil lines up for the National Anthem during the FIFA Confederations Cup match beween Italy and Brazil at The Loftus Versfeld Stadium on June 21, 2009 in Pretoria, South Africa. (Photo by Laurence Griffiths/Getty Images)

(Photo by Laurence Griffiths/Getty Images)

An interesting report was issued by Frontier Economics last 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?

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written on June 22, 2009 Opinion

Certain photos copyright © 2009 by Getty Images.
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