Juventus will pay up to €340M ($397M) for Cristiano Ronaldo over the next four seasons, according to Murad Ahmed of the FINANCIAL TIMES. Club President Andrea Agnelli, a "scion of the billionaire family that has owned the club for 95 years," said, "It was the first time that the commercial side and the sporting side of Juventus came together in assessing the costs and benefits [of a signing]. The opportunity of Ronaldo was thoroughly assessed ... and it made sense, both on and off the pitch." On the pitch, "the team does not need Ronaldo to dominate Italian football." The club has won seven consecutive Serie A league titles. Off the pitch, Juventus "believes the player presents an unparalleled financial opportunity," described by execs as "the Ronaldo effect." The Turin club is looking to "invert the business model that has prevailed in football for decades." Elite clubs rely on large crowds and lucrative broadcasting deals to "convince sponsors to pay to be associated with their teams." Under the new model, "the global celebrity of Ronaldo is expected to drag fans and corporate groups to Juventus, with higher broadcasting money to follow." There are "early signs the bet is paying off." While in "secret talks" to sign Ronaldo, Juventus increased average season ticket prices by 30%. All 29,300 have been sold. On matchday, the Juventus stadium "superstore is doing a brisk trade in Ronaldo replica shirts" that cost up to €154.95 ($181.15) -- "among the highest prices in Europe." For Ronaldo's home debut, fans traveled "from all over the world" while TV networks spent days "trailing his arrival in Turin." Investors "seem to agree that the Ronaldo effect will provide exponential value to Juventus." The club’s share price has more than doubled, raising its market capitalization to €1.5B ($1.75B), since July. Digital sports marketing company Two Circles co-Founder Gareth Balch said, "Ronaldo brings a level of stardust that is difficult to find in any sports person. In the sponsorship buyer’s mind, there is a level of irrationality that exists in every human ... which is that having Ronaldo elevates Juventus into a group of football clubs that it was not in before. If executed correctly, Juventus can really profit from its investment." The "real hope in Turin is that Ronaldo will ramp up the value" of Juventus' sponsorship deals. In '17, thanks to "strong performances in Europe," the club earned more from broadcast rights than ManU, the world’s richest club by revenue. Yet, "while the English club has struggled on the pitch in recent years," it earned nearly €200M ($234M) more than Juventus in commercial deals (FT, 9/16).
