Make an enquiry

Enquiry Form









Contact

Enquiry Form






Supporting Document


FJG Solicitors in Essex, Colchester, Chelmsford, London – Fisher Jones Greenwood
  • 0845 543 5700
  • [email protected]
  • Make an enquiry
  • Home
  • Services
    • Services for you
      • Advocacy
      • Civil & Commercial Disputes
      • Clinical and Medical Negligence
      • Conveyancing
      • Employment
      • Family Law
      • Children Law
      • Immigration & Visas
      • Personal Injury
      • Public Law & Human Rights
      • Wills, Life Planning & Probate
    • Services for business
      • Academies Portal
      • Agricultural and Rural
      • Business Immigration
      • Commercial Dispute Resolution
      • Commercial Litigation
      • Professional Negligence
      • Commercial Real Estate
      • Planning Consultancy
      • Corporate and Commercial
      • Education Services
      • Employment Law
      • Healthcare Services
      • International Services
      • Landlord & Tenant Services
    • Services by sector
      • Agriculture & Estates
      • Care Homes
      • Charities & Social Enterprise
      • Construction
      • Education Law
      • Energy
      • Family Owned Business
      • Healthcare & Dentistry
  • Our people
  • About us
    • CSR
    • Awards
    • Our Vision
    • Equality & Diversity
    • Careers
    • FLOCC
    • FJG Foundation
    • SAFE Forum
  • News & Events
  • Blog
  • Contact us
    • Colchester
    • Chelmsford
    • Billericay
    • Clacton-on-Sea
    • Holland-on-Sea
    • London

Gareth Bale: Worth £86 Million?

6 September 2013 by Ashton Carter

Ashton Carter

This week Real Madrid paid a world record £86 million transfer fee, alongside a reported salary of £8 million for former Tottenham Hotspur player Gareth Bale to join Real Madrid. For the duration of his 6 year contract, Real Madrid will spend £134 million on the player.

With Real Madrid speculated to be in approximately £500 million debt, it begs the question whether spending such a huge sum on a player will provide a good business return.

UEFA’s definition of debt provides a different interpretation. In 2011-2012, Real Madrid had bank debts of £125 million, with cash at the bank of approximately £84 million. With this leaving a debt of £41 million, and transfer liabilities bringing this figure to £106 million, can the purchase of Gareth Bale be seen as a worthy investment, and will he be able to boost their ability to generate such large revenues?

Real Madrid are the biggest club in the world according to Deloitte’s Annual Review of football
finance, and have maintained this title for four years running. Discounting the purchase of Bale, the club is expected to post an extra £80 million in revenue by the end of next season.

The manager of Real Madrid believes that big signings such as Bale will eventually pay their own way in merchandising sales. For instance, following the purchase of Ronaldo from Manchester United in 2009, the club announced they had made nearly £90 million primarily from shirt sales. David Beckham also contributed to a 67% rise in the sales of merchandise after joining the club.

Despite not having any guarantee that a players time at the club will be successful, Real Madrid’s record proves that all big money transfers have eventually provided them with a substantial return.

So has anyone lost out?

When Southampton sold Bale to Tottenham in 2007 for £7 million, a sell on clause was placed in his contract meaning the team would benefit from 25% of the transfer fee if he was ever sold on by Tottenham. When Southampton got into financial difficulty, they allowed Tottenham to buy out the sell on clause for £3 million and goalkeeper Tommy Forecast. In hindsight a bad decision, given that contractually Southampton would have been entitled to £20 million if they’d not sold the buy- back clause.

While Southampton clearly could not have ‘Forecast’ the scenario of events that have now played out, the situation with Real is sure to have caused a few ‘real’ headaches on the south coast!

If you have any contractual or investment legal queries, get in touch with our commercial team today on 01206 835230 or at [email protected]

Authors
Archives
Subscribe to RSS feed

Recent Posts

  • How long does it take to buy a house?
  • “Drop in” to our Conveyancing drop-in at the Clacton office
  • Be Aware - Who says romance is dead!
@FJGSolicitors

@solicitorchat 2/2 Another common issue is the difficulties new businesses experience in setting up their business… https://t.co/0KvUcSbjDU

15 hours

@solicitorchat 1/2 The need for a set of trading terms and conditions is essential but often overlooked – it is imp… https://t.co/6zE7Lz4Azw

15 hours

@solicitorchat 2/2 ...processing in compliance with the GDPR regulations, incorporating this in to their trading ac… https://t.co/yZVfGhKGhj

15 hours
Billericay 01277 623132
Chelmsford 01245 890110
Colchester 01206 835300
Clacton 01255 323103
Holland-on-Sea 01255 818900
London 08455 435700
  • Disclaimer
  • Accessibility
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Price & Service
  • Signup to our Newsletter
Website designed and built by Green Square

Fisher Jones Greenwood is the trading name of Fisher Jones Greenwood LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and registered in England ( Number: OC305854 ). A list of members is available for inspection at the registered office at Charter Court, Newcomen Way, Colchester Business Park, Colchester, Essex CO4 9YA

​