Monday, June 15, 2009

Criminal Financial Dealings

About a year back, I wrote an entry on this blog about how Marca sells newspapers by publishing false football rumours. Some of these news items materialise into deals, and most don't. While the earlier article talks about the hype rumours create, this one is for the hype, the actual transfers that come through, create.

Yes, Yes everybody knows Real Madrid splashed out 65m Euro for Kaka and 93m for Ronaldo. That's a hell of a lot of money. Now it would be a legitimate question if people ask, why Madrid overpay for their transfers. A possible explanation to that is that, teams know Madrid will pay close to whatever they demand, so they just inflate the transfer fee. This does have its bad effects on the transfer market, yes. What I find ridiculous is, not just fans or players or managers, but the management of several clubs are criticising the Madrid transfer system.

Some facts before you start jumping at me. Clubs in Spain are not owned by individuals, like the case is in England. You have Oil tycoons, Arab Sheikhs, American finance big shots and many more funding the English clubs, whereas in Spain, specifically Real Madrid, no single owner exists. There is a president who is the authority on the business dealings, and Perez being the shrewd businessman that he is, has pulled off some amazing deals. Our money, Our dealings, anything wrong with that?

People often complain, why do Madrid buy superstars of every club, why can't they grow or develop talent like some of the other clubs. The answer to that is pretty complicated. Madrid is a club where patience is unheard of, fans want success all the time. Such is their history and they have every right to be that way. It is not as if they do not produce good kids at all. They don't use them properly, but that's a different issue altogether. People who know the Spanish game will know that Negredo, Granero, Mata, Diego Lopez, all of whom are product of the Real Madrid Castilla, are superstars in the making at lower clubs. Coming back to the point, one way, and the right way in my opinion, to look at the transfers is this. A club X develops a player from its youth system, and his value increases. They do well with him, but after a point, he seeks newer challenges and better avenues for success/money whatever. This is where Real come into the picture. They pay a lavish sum and all parties are happy. X has not much more it can offer to the player, and also end up making a profit on the sale. This is how most transfers to Madrid work. Now your non Madrid big shot clubs, cannot afford such lavish sums, what do they do instead? Steal other clubs' youth talent for dirt cheap sums and 'develop them'. Such is the case with the top 3 players in the world at the moment. Ronaldo was nicked off a Portuguese club, Kaka similarly from a Brazilian club, both at around 18 years of age. Messi, the third was stolen at 12! 12- the kid would not be knowing percentages by then, but Barca recruit him and now call him one of their own. Now which policy is more criminal? You tell me.