The question posed in the headline of this article is: How are Juventus able to afford the salary and transfer of Cristiano Ronaldo? Juventus are not a poor club, but the high salaries of CR7 have prevented them from investing in other players. Juve’s infamous rape scandal has damaged the club’s brand and has also hurt the workrate of CR7. In this article, we will look at the amortization of the value of the transfer to show that they can afford CR7.
CR7’s workrate has been an issue for Juve
Leonardo Bonucci believes that Cristiano Ronaldo’s workrate has become a problem for Juventus this season. The midfielder moved to Turin in 2018, scoring 101 goals in 134 matches. In his first two years, Juventus won the Serie A title. Last season, however, the Portuguese star slowed down, scoring just five goals. This was the reason that Juventus let Ronaldo leave for Manchester United. While the former Juventus player was widely criticized for his teamwork, he has also been accused of poor workrate at the club. Despite his poor teamwork, Leonardo Bonucci argued that Juventus have also suffered from lack of team spirit.
It’s not just the workrate, but the overall level. Juventus have struggled to adapt to the new manager. Earlier in the season, Sarri announced that Ronaldo would no longer be expected to worry about tactical instructions and that the rest of the team would work for him. That was an ego-boosting statement from the coach, but it didn’t do much to improve the workrate of Ronaldo.
When Cristiano Ronaldo was at Manchester United, he wasn’t working as hard as he had done in the past. He was a little too slack when playing out of position. However, in the second half of the season, his form and confidence has improved dramatically. The Portuguese superstar now averages 0.44 tackles-plus-interceptions per 90 minutes, a level he’s never achieved before.
In the past, the Portuguese superstar was praised for his ability to beat defenders one-on-one, his long legs pumping and his agility. But these attributes aren’t enough to keep him on top. He needs to improve his workrate to stay at the top of the game. But the defenders aren’t the only ones who need workrate improvement, and Ronaldo can’t do it if he’s not willing to do it.
Despite the many attributes of a great player, Cristiano Ronaldo’s workrate has always been an issue for the Italian giant. When he’s out of possession, he’s passive and reserves his energy for the attacking phases. But he has an incredible goal-scoring instinct and wants to score in every game. His goal-scoring record is second to none, and he’s one of the greatest in history.
Ronaldo’s astronomical wages have prevented Juve from investing elsewhere on the pitch
Juventus’ astronomical salaries are preventing them from investing elsewhere on the pitch. The club spent over EUR116m signing Ronaldo from Real Madrid in the summer of 2018. The transfer fee alone is over $140 million. In addition to his salary, Juventus have to cover a total annual amortisation of EUR29m. Ronaldo’s net salary is around €31m. Considering that the club has to pay out at least 57 million to Ronaldo annually, the astronomical wages of the Portuguese forward will keep Juventus from investing elsewhere on the pitch.
Juventus have struggled to upgrade their squad without the superstar, who earns around $38 million a season. However, despite being a global superstar, Juventus are not able to afford to replace Ronaldo with a new signing. Juventus’ players aren’t good enough without him and cannot afford to spend on upgrades. According to a MARCA report, the astronomical wages of Juventus’ top players has prevented the club from investing elsewhere in the pitch.
In addition to Ronaldo’s astronomical wages, Juventus aren’t able to fund the investment in the squad that will replace him. The club has also failed to sign any other players for the first time since Ronaldo’s arrival. It’s been a frustrating season for Juve fans. The club isn’t a contender to win the Serie A title next season, but it’s in dire need of new players.
Despite Juventus’ colossal wages, the Portuguese star has remained loyal to the club throughout his career and has helped them win two Serie A titles and a Champions League. However, Juve’s dominance in the domestic league has waned since Ronaldo’s arrival and his astronomical wages have restricted the club’s ability to invest elsewhere.
As a result of the colossal wages of Cristiano Ronaldo, the Italian club have been unable to invest in other areas of the squad. Despite the colossal wages, Ronaldo’s charity work has been lauded. He is actively involved in several charity projects and has donated a reported EUR600,000 to a Portuguese cancer charity after winning the Champions League in 2016.
CR7’s alleged rape is hurting Juve’s brand
Cristiano Ronaldo scored a second goal in Juventus’ 2-0 win over Udinese on Saturday. It is the first time that Juventus has won a game since the allegations surfaced, and fans were rapt to welcome their new star forward. CR7 was signed by Juventus from Real Madrid in the summer, and his arrival has been celebrated in the stadium with rapturous applause from Juve fans.
CR7’s alleged raping has already damaged Juventus’ brand. The American player is accused of sexually assaulting Kathryn Mayorga in a Las Vegas hotel room back in 2009. The woman has subsequently filed a lawsuit against Ronaldo. Despite the fact that Cristiano has denied the allegations, Juventus’ shares have plummeted since the scandal broke.
The Italian club have signed a multiyear deal with the International Champions Cup, organized by Relevent Sports in New York. Juve’s involvement in the competition has largely been affected by CR7’s alleged rape. The schedule of the tournament will be released next week. Although preseason tours are not considered serious competition, they are important for a team’s preparation.
While Juventus have expressed their support for their superstar, the scandal is threatening to undermine their brand. Juve have responded by posting messages of support on their Twitter account. Juve are in negotiations with the Portuguese over a settlement with Mayorga. The Portuguese are allegedly considering a lawsuit against the Juve manager. Whether it is true or not, CR7’s alleged rape is hurting Juve’s brand is yet to be seen.
Juventus can afford the transfer by amortizing the value of the deal
Juventus can afford the salary of Cristiano Ronaldi over four years. The Juventus team will not have to pay the full EUR100 million for the transfer until the 2018-19 season. The club will split the transfer fee into four equal chunks of EUR25 million, and this means that Juventus will only receive 80% of the total sum over four seasons. If Juventus can afford the salary of Cristiano Ronaldi, then it can afford the salary of another star player.
In order to afford the salary of Cristiano Ronaldi, Juventus have to reduce their intangible assets. It is estimated that Juventus will spend around EUR100m on the transfer of Ronaldo and EUR126 million on other players. The club also needs to cover EUR5 million in solidarity compensation and EUR38 million in performance-related bonuses. By lowering their intangible assets, Juventus can afford the salary of Cristiano Ronaldi while maintaining a healthy balance sheet.
It is difficult to imagine a Juventus team without Cristiano Ronaldi. Juve has to expand their revenue base without major sales and must learn how to compete in a world without a superstar. This is the key to Juventus’ financial success. By absorbing the costs associated with CR7, Juventus can afford the salary of Cristiano Ronaldi. If Juventus can monetize the value of the deal, they can afford to pay Cristiano Ronaldi’s salary in the future.
The cost of Ronaldo’s contract will be spread over four seasons. Juventus’ revenue will be around EUR400 million this season. This is significantly less than the profits generated by Real Madrid, FC Barcelona, and Manchester United FC. Juventus’ operating revenues increased 25% the first season. The club’s expansion plans were put on hold after the pandemic. However, the team took a EUR300 million capital increase to support their strategy for future expansion.
The transfer of Cristiano Ronaldo was a big gamble for both sides. While Juventus were unable to afford the transfer fee, they did spend $120 million on the player’s contract. Juventus were able to amortize the value of the deal by signing him in 2018.
