Friday, June 12, 2009

Cristiano Ronaldo Getting More Expensive Daily!

The economy is benefiting Manchester United in the transfer of Cristiano Ronaldo to Real Madrid! Who would have thought that accepting an offer for Ronaldo would actually become more beneficial by the day? The day the pound hit its highest level against the euro for six months, Manchester United finally said "Yes" to Real's offer. Amazingly, until the paperwork is signed and sealed every rise will cost the Spanish club more money.
Let's look at the numbers: 1 pound reached 1.17 euros on Thursday, in January it was 1.07. Experts have calculated that for every cent the euro falls, Real Madrid will owe an extra one million euros. Are you kidding me!? For every small change on the stock market, Madrid will owe an extra one million. The teams have currently agreed on £80million, this number would have equaled €83 million in January. This was when the pound was much weaker, but at today’s exchange rate, the same sterling amount will cost Real Madrid €93 million.

Mark O’Sullivan, who works as director of dealing at Currencies Direct in the UK, stated, “While the Ronaldo deal is good news for Real Madrid supporters, the accountants at the Bernabeu stadium will be sweating until the paperwork is all signed and sealed. Ronaldo’s price in January 09 was 83 million euros, today it is 93 million euros and rising and this will have a tremendous impact on Real Madrid’s plans to amortise this investment."

It is amazing how we don't think of these things when we hear about transfers. “This deal highlights the fact that the final price of a player like Ronaldo is very much decided by the currency markets and not always in the board rooms of football clubs - though who would put it past a canny Scot like Sir Alex Ferguson to take all this into consideration too!” Mr. O’Sullivan added. Add to this the fact that a lot of teams pay in installments with interest and the fee increases even more! There is no doubt that Manchester United fans will be sad to see Ronaldo leave and will hope that he somehow stays at the club. Technically, they should be hoping the transfer drags on another few weeks so that the transfer fee increases even more!

How Adidas Got Its Name!

I found this pretty cool article, you may not know this but:
"Many people believe that "Adidas" is an acronym for "All Day I Dream About Soccer," but the real origins of the name are decidedly less sporty. "Adidas" is a portmanteau of the name of Adi Dassler, the German businessman who started the company in 1949. Before starting Adidas, Dassler had been in the shoe business with his brother Rudi, and together the brothers made the shoes Jesse Owens wore for his triumph at the 1936 Olympics. In 1948, though, Adi and Rudi split to go take on their own projects. Adi's Adidas obviously flourished, but Rudi didn't do too badly for himself by starting a little shoe company he called Puma."

For more check out this article compliments of the Wall Street Journal.

Thursday, June 11, 2009

Cristiano Ronaldo to Real Madrid

It is official and is sure to happen really soon! Manchester United have accepted an £80 million offer from Real Madrid for World Player of the Year Cristiano Ronaldo. Madrid are on a spending spree right now after just spending £60 million on Brazilian star Kaka, showing their intent to be the top team in Europe next season. Ronaldo will now have contract discussions with Madrid before the signing is finalized. But in this situation it is pretty much a done deal, as Ronaldo has reiterated his desire to move to the Bernabeu. Expect to see the deal signed in the next 24 hours.

So, what does this mean for Manchester United? Sir Alex Ferguson has a very solid squad at his disposal. A move for Franck Ribery is not out of the question, but I do not expect Ferguson to have a summer spending spree. What has brought so much success to United in the past few years is the consistency in the team. Unlike Arsenal, Chelsea and Liverpool, United have limited their big signings to 1 or 2 players per year. Ronaldo was not happy at United, and keeping him could only lead to bad things. A negative influence on the locker room is something Ferguson strives to avoid. Look at the sales of Beckham and Jaap Stam as evidence, both players were causing dissension to Ferguson. United will need to look for a decent rid midfielder to try fill Ronaldo's boots. Nani has never looked the part, and young Serbian star Zoran Tosic does not yet have enough experience. Darren Fletcher might be the only suitable right midfielder in the squad right now, but Ferguson has been deploying him in a more central role with much success. Ribery would be the ideal signing, being an established and pretty polished winger who has proven himself in the recent past. Watch this space for more information.

Monday, June 8, 2009

Real Madrid Sign Kaka

In what is sure to be an epic summer of signings for Real Madrid, returning Real president Florentino Perez has captured the signing of Brazilian playmaker Kaka from AC Milan. The fee for the 27 year old is reported to be in the region of $75 million, eclipsing the previous record Real paid for Zenedine Zidane in 2001.
An AC Milan statement read:
"It will be very difficult to fill the void that will be left by Kaka, [He is] a shining example of professionalism and commitment."
"AC Milan thanked the man and the great champion Kaka for his decisive contribution to the many victories achieved in the six years of his commitment."

Kaka underwent a medical yesterday in Recife, ahead of the national teams game with Paraguay. The official unveiling in Madrid is unlikely to take place until the end of the month, as Kaka will be playing for Brazil in the upcoming Confederations Cup in South Africa.
Kaka has long been a target for Real Madrid since former president Ramon Calderon promised to sign him in his election campaign in 2006 but failed to deliver. Perez, who led the Spanish club from 2000 to 2006 during the famous Galacticos era, has promised a return to the top of Europe's elite, and this is sure to back his claims. Whats more, he has promised more to come in the summer and has also been linked to Cristiano Ronaldo.

I think this is an excellent signing for Real Madrid. Real struggled last season because of injuries. With the likes of Ruud Van Nistelrooy and Arjen Roben coming back into the team, Real are sure to be a presence anyway. Next on the list, in my opinion has to be a strong center midfielder, someone like Claude Makelele who Real never replaced after leaving for Chelsea. And with Perez ready to show he is the man to bring the team back to the top of the European hierarchy it could be an exciting summer of signings. On the other hand, lets hope he gets it right as this could be a big financial gamble in a very downward spiraling economy!

Wednesday, June 3, 2009

Kaka Transfer Decided by Carlo Ancelotti?

It looks like the battle is on between two of the worlds richest teams to sign AC Milan's Kaka. It is no secret that Chelsea and Real Madrid have money to sign. Chelsea have a Russian billionaire who is not afraid to splash the cash, while Madrid are reknowned for buying big. On Tuesday morning it was revealed that Kaka was on the verge of signing for Real Madrid. AC Milan have tried to break speculation since then, but the media continues to talk. But this is a battle new Real president Perez dare not lose. For he has NEVER failed to deliver on his pledges. He single-handedly created the era of the Galacticos, when the planet's biggest stars - £47million world- record capture Zinedine Zidane, £37m Luis Figo, £30m Ronaldo and £24m David Beckham - completed amazing moves to the Bernabeu. Now he has promised Kaka to the people of Madrid - and failure is not an option. Last night it was revealed that Chelsea were making a bid to sign the Brazilian for a reported $75million, with new Blues manager Carlo Ancelotti personally phoning Kaka in a bid to stall his move to Madrid and buy some time.

This is a battle that is sure to rage for the next few weeks. It is going to be a battle of money, power, status and ego!

Brazil Soccer Bus Overturns!

Celebrations were taken to the next level in Sertaozinho, Brazil last weekend, after a bus of celebrating players overturned! One of the main reasons behind newly promoted Sertaozinho bus overturning was the fact that they had many fans joining the players aboard the top of the bus. When the rickety vehicle hit a dip in the road, it began to sway. Unable to regain its balance, the bus fell on its side sending bodies sprawling to the ground. Many fought to hold onto the side of the bus, but were not successful. There were some serious injuries from the incident, including a broken colar bone and a player who severly bruised his spleen. Another player suffered multiple fractures to his arm. At least the team has a few months to recover before the new season!

In January, a more serious incident occured in Brazil when the bus of third division team Brasil de Pelotas crashed, killing two players and a coach. The bus driver allegedly lost control of the vehicle approaching a turn and it fell into a 40-meter (130-foot) roadside ravine, the federal highway police said.

Monday, June 1, 2009

Manchester United to Expand Old Trafford

It has been announced that Manchester United are to expand Old Trafford by an additional 20,000 seats raising the max attendance to 95,000. This number is bigger than Wembley maximum attendance! Currently a full house at a United home game brings in an estimated $3.7 million revenue, with the increase adding an extra $800,000. According to reports, it was Alex Ferguson who pushed the idea on the Glazer's stating a desire to add cheaper, more affordable seating for fans.

With the current Premier League Averages, only Arsenal and Newcastle would have over half the attendance of United, with Arsenal averaging 60,000 and Newcastle at 48,750. Yes thats right, the only teams to have half of Uniteds! What this essentially means is that United would be pulling in over double the revenue of 85% of the Premier League every home game. This relates into over $25 million dollars more per season in generated revenue, essentially a big money signing! One of the key issues to this is whether it will encourage other teams to follow suit. Liverpool in particular are set to move from their Anfield home in a quest to catch up on United. Chelsea are another team that might need to soon make a transition.

2009 Premier League Average Attendance Numbers:

TeamPldTotalHighestAverageCapacity
Pct
1Manchester United (1)191430776755697530476212
98.8%
2Arsenal (4)191140754601096004060432
99.3%
3Newcastle United (18)19926244521144875052387
93.0%
4Liverpool (2)19828610444244361145362
96.1%
5Manchester City (10)19820075473314316248000
89.9%
6Chelsea (3)19790172434174158842055
98.8%
7Sunderland (16)19763098479364016349000
81.9%
8Aston Villa (6)19756422425853981242551
93.5%
9Tottenham Hotspur (8)19682645361833592936310
98.9%
10Everton (5)19677679395743566740394
88.2%
11West Ham United (9)19650307408423422735647
96.0%
12Middlesbrough (19)19540144337672842935100
80.9%
13Stoke City (12)19512242275002696028384
94.9%
14West Bromwich Albion (20)19490726263442582828003
92.2%
15Hull City (17)19471507249452481625404
97.6%
16Fulham (7)19462462256612434026600
91.5%
17Blackburn Rovers (15)19446146283892348131367
74.8%
18Bolton Wanderers (13)19427228260212248628723
78.2%
19Portsmouth (14)19376762205401983020688
95.8%
20Wigan Athletic (11)19348656229541835025138
72.9%

Ancelotti To Take Over At Chelsea

A.C Milan accepted the fact that they would be losing manager Carlos Ancelotti to Chelsea on Monday morning. After guiding AC back into the Champions League, Ancelotti decided that a new adventure in England was his next challenge. Chelsea have been looking for a full time replacement for Luiz Felipe Scolari, who left the club in December. Since his departure, Gus Hiddink has helped steady the ship and guided Chelsea to FA Cup success this past weekend. I am sure that Hiddink would have been the No. 1 choice for Chelsea, but he had said from the beginning that he was only going to be with the club until the end of the season.

Ancelotti brings a wealth of experience to Chelsea. He spent 8 seasons as manager of AC where he won:
  • 2 Champions League titles
  • 1 Serie A title
  • 1 Italian Cup
  • 1 Club World Cup
There are some concerns over his appointment though, with one being his lack of English, a problem that hindered Scollari's time at Chelsea. Another issue is the lack of league titles, with only one in eight seasons. This season saw Milan finish 10 points off the pace as Mourinho guided Inter Milan to the Serie A title.