ManU To Install Floodlights At Complex IFA Advised To Demolish Windsor Park SFA Chief Issues Warning To Dave King SPFL Bows To Pressure Two Biggest Matches To Play At Same Time CONCACAF Should Have Extra Cup Slot IRFU Warns Against Listing Six Nations Broadhurst Park Nearly Completed Croke Park Unlikely To Sell Naming Rights ManU Megastore Staff Sweating Over Jobs
Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).
Upcoming Conferences and Events
SBD Global/August 22, 2013/International Football
Gareth Bale Madrid Transfer Speculation Raises Questions Over Worth Of Player
Published August 22, 2013
WANT MORE GREAT STORIES LIKE THIS?
CLICK ON ONE OF THESE BUTTONS
PRICE MONEY: This one "is quite straightforward." If Bale helps Madrid advance further in the Champions League, "the club will earn more prize money."
BOX OFFICE: Real Madrid "drew nearly 70,000 a game in La Liga last season." There's room for 15,000 or so more per game at the Bernabeu, and of course, "ticket prices can be increased." If Real Madrid becomes more successful, it will draw more (and be able to charge more), "so the concept really is extrapolating how much Bale's presence alone contributes here."
MERCHANDISING: Real Madrid President Florentino Perez "loves to make a big deal out of this, citing the millions of David Beckham and Zinedine Zidane shirts the club sold over the years." It is "tempting to figure that if you sell a million shirts" at, say, $80 a shirt, that's $80M right there. But, in fact, "it doesn't work that way." For every Bale jersey sold, you have to ask yourself this: "Is the purchaser a Real fan who, if Bale hadn't signed, would have bought a shirt anyway?" Even more important is that "when clubs sell a jersey, they keep only a royalty ranging from 10 to 20 percent of the value." And depending on the image-rights contract, "they might have to split that amount with the player."
SPONSORSHIP: Sometimes you will have a player who is so popular that you will "be able to cut better deals with sponsors or attract new ones" simply because he is there. That obviously would not "be the case with Bale." So against all those benefits, you would "weigh up the costs and risks associated" (ESPN, 8/21).