How Ronaldo to Juventus benefits you

The biggest shock transfer of this pre-season transfer window has to be Ronaldo's impending transfer to Juventus which can be announced at any point from now. This transfer has been reported to have a fee in the bracket of €100 million ($110 million).

To many, it came as a surprise and to a very few others, an obviously smart move as Ronaldo had achieved everything possible for a player in Real Madrid colours. His achievements while playing for Real Madrid are as follows:

La Liga: 2011–12, 2016–17

Copa del Rey: 2010–11, 2013–14

Supercopa de España: 2012, 2017

UEFA Champions League: 2013–14, 2015–16, 2016–17, 2017–18

FIFA Club World Cup: 2014, 2016, 2017

UEFA Super Cup: 2014, 2017

(Source: Wikipedia)

It is clear from his transfer, that all the parties involved in this transaction have benefitted or will be benefitted in huge amounts. Real Madrid bought him for world record transfer fee at the time, of £80 million (€94 million) in 2009.

There is absolutely no doubt how he has given more than was paid for him back to Real Madrid in various ways (Part of shirt sales goes to Madrid through their deals with the Kit manufacturers, Adidas in this case, Stadium attendance, brand endorsements, attracting big brands as club sponsors etc.)

His reported transfer fee is more than what he was bought for. His agent Jorge Mendes too will take a fair share of fees for this deal.

Cristiano Ronaldo and Jorge Mendes when Cristiano received his fourth golden boot award

But how can a fan benefit from this kind of a deal remains an illusion.

All the big clubs are enlisted in the stock market as shares and the public can trade those shares in open trade. Once a big signing rumour starts around a club (like Ronaldo to Juve and Pogba to United) the stock prices start going up.

This, can be for various reasons, investors think that with the advent of new iconic players, the club results will improve and the market face value will increase. The tournament winning amounts(usually negligible as compared to other sources of income) might increase due to better performance which is directly associated to big names performance. The earning through TV returns increases as the club's matches are televised more frequently as the crowd wants to see their favourite superstar in action all the time. All the leading brands try to be establish a deal with the club in order to monopolise their income even more as the public will use products associated with the players due to the trust the player builds as a brand.

Let's analyse these changes in public sentiments in the market for Juventus since the time Ronaldo rumours started pouring in the transfer market (July 3)

Juventus's Stock price surged July 3 onwards due to Ronaldo transfer Rumours

We see a tremendous surge in the Juventus stock price as soon as the rumours started for the impending transfers and further increase as the transfer rumours started heating up. There is no doubt the stock price for Juventus will further go up if and when the transfer is completed.

This is like any other market opportunity where a company performs well and they are set to acquire a well-performing asset, the investors become bullish and start investing in the companies future due to potential good performance in the market.

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