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The prodigal son returns. In the last few days in a frantic football transfer window, Manchester United have pulled off a dream signing, welcoming Cristiano Ronaldo back to his former club.

But how does a professional-level player like Ronaldo affect the business direction of a major football club? Where are the main financial gains from sports superstars?

In terms of football transfer fees, Ronaldo returns to United with a relatively cheap price tag. He has signed a two-year contract (renewable) with an initial fee of £12.86 million and the possibility of an additional £6.85 million in performance-related bonuses.

This is primarily due to his age. At 36, he is nearing the end of his playing career and the fee reflects that, although his level of play remains high. This performance factor is reflected in his salary, which is around £385,000 a week.

If you add these figures together, Manchester United's total cost is around £60 million. The club has also demonstrated clever business tactics, managing to spread the payments over five years.

For their part, United hope that Ronaldo's prowess will improve the club's chances on the pitch. But the bigger picture is the commercial advantage he can bring.

Of course, the strength of his personal brand (he is widely known as "CR7" by his initials and preferred player number) - despite the ongoing civil suit against him on rape charges, which he denies (criminal charges have been dropped) - instantly expands the club's international reach and appeal.

Ronaldo now has half a billion followers on social media, compared with 140 million for Manchester United, and his signing announcement has generated 12.5 million likes on Instagram. Converting that reach into cash is crucial.

The numbers game

Ronaldo has already boosted United's shirt sales to a record amount. But it is Adidas who will receive the initial benefit, as the German kit manufacturer will pay a licence fee to reproduce the famous red shirts. Nevertheless, United's current deal with Adidas is already the biggest in football , and the Ronaldo effect should allow club management to raise the price when it comes to upgrades.

United's wider business dealings should also receive a significant boost. Sponsors will be forced to cooperate with United and it is possible that the club could earn an additional £30 million from commercial deals in the next couple of years .

And while exact figures are difficult to predict, we can look to Ronaldo's last club, Juventus, for a guide. The Portuguese moved there from Real Madrid in 2018 and the next two years show significant commercial growth for the Italian club.

Of course, it's not all because of Ronaldo, but he's certainly helped. While he was in the team, Juventus renegotiated deals with Adidas and Jeep and signed a new one with Konami in Japan, who cited the 'Ronaldo effect' as the main reason for the partnership.

Meanwhile, as analysts at Indonesia Exness have highlighted, Manchester United are already generating significant profits from commercial deals and Ronaldo will help boost those numbers. The team and the player have been described as a "match made in heaven" , with the club's share price skyrocketing before Ronaldo even hit the ground running in Manchester.

We can expect more long-term success in the next couple of years, and if he helps the club win trophies, the numbers could be staggering. Those numbers will no doubt be studied by top European clubs as they desperately look for the next Ronaldo and Messi, as evidenced by Real Madrid's recent failed attempt to land Kylian Mbappe from Paris Saint-Germain. (Expect him to be the next big move in January 2022.)

The football industry as a whole is concerned about a changing market where the relationship between the game and young people is getting worse. A recent study showed that 40% of respondents in seven countries (including England, Poland and Brazil) between the ages of 16 and 24 had no interest in football, raising fears of a "missing generation" of fans.

As a result, clubs are looking for new ways to engage. Anything that extends reach to younger age groups is of huge interest to club owners, so Ronaldo's presence on social media is another marker.

The connection between fans and their favourite player is also becoming increasingly important, especially in emerging markets. In India, for example, almost a third of fans say that loyalty to a player influences their support for the club.




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