Did Real Madrid Overpay for Kaka and Cristiano Ronaldo?

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?