Player Sales Drive South American Football Profits

With their signings of Boca Juniors sensation Fernando Gago, River Plate striker Gonzalo Higuain, and Fluminense fullback Marcelo, Real Madrid has spent 40 million Euros over the past month to bring in three wet-behind-the-ears, extremely talented players from South America. A new report shows that the Spanish giants are hardly alone in importing talent from South America and that European transfer money is becoming increasingly important in helping to keep teams afloat in Brazil and Argentina.

According to the study, conducted by Deloitte & Touche LLP, Brazilian and Argentine teams derive 30 percent and 50 percent of revenue from trades respectively and this number continues to grow as gate receipts, television revenue and sponsorship money is shrinking up.

Brazilians clubs, which post an average annual operating loss of $83.5 million, sold 804 players in 2005, generating $100 million, the accountancy firm said. Half came from Robinho’s move from Santos to Real Madrid.

Forget the money for a second and think about the number of players from Brazil that are roaming this planet making a living playing football. That is quite remarkable. No wonder you see Brazilian names in leagues from Macedonia to Japan. Football players are truly a national export product.

This trend is unlikely to change as the rich clubs gets richer and global television broadcasts make it increasingly easier to stay at home to watch the best in the world, instead of taking a bus to a stadium to watch the local league. It does make you wonder what would happen to clubs in South America if FIFA and UEFA go forward with their 6+5 plan to limit foreign imports. They might be able to hold onto their talent a bit longer, but at what price to their bottom line?

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Category: Europe, South America

Tags: Argentina, brazil, Europe, Player sales, Real Madrid, South America

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